Insurance and Taxes for Thailand Registered Company

Once you have set up a company in Thailand, you may have to develop a cross-cultural management system. It is important to mention that Thailand has more efficient working and social culture than western countries.

There is one important aspect to understand that Thais don’t prefer to express their opinion instantly. You may find them sitting silently during all the meetings. The chances are that you may have to discuss the relevant problems with them in private. It is important to be mindful about your conversations with elders, even if you rank higher than them in the corporate culture. One should show respect to elders in the country and address them with respect using word Khun, which implies sir or madam. Every foreign business owner needs to make efforts to adapt to Thai culture and systems to lead the business more effectively.

Another important aspect of the Thai business sector is insurance and taxes. You may have to develop a clear understanding of them. Below we have listed a few details about taxes and insurances for company registration in Thailand.

Paying taxes:

One of the major responsibilities for setting up a business in Thailand is renewing licenses and filing taxes. It is important to hire an accountant; it can be your registered company account or a local business with a good referral. If you do not pay taxes on time, it may lead to huge fines; in some cases, may even lead to cancellation of work permits.

The corporate income tax rate set in the year 2019 for a venture in Thailand is 10% over annual profits of more than 300,000 baht. You have to pay corporate tax two times in a year. At the same time, you have to follow guidelines for withholding taxes and VAT. Note that VAT is generally calculated over services and goods. At present, the VAT rate is 7%, and it is applied to the price at which you buy and sell goods. Some companies are also subjected to withholding taxes that you have to pay to the Revenue department on a monthly basis.

Getting insured:

Companies in Thailand need to ensure social security for their employees, and for this, they need to pay to the social security find on a monthly basis. Other than this, you may also have to work for the medical coverage of your employees. Maintaining the health of your employees is always a top priority, and for this, you can buy group health insurance.

Although it is an optional idea, it may help you to attract more skilful people to your company. Moreover, the expenses that you pay for staff insurance can be mentioned for the tax rebate. It is better to find a reliable broker for finding adequate insurance package.

It is also important to check provisions for commercial insurance to protect your business, employees and customers from any mishappening. Also, look for disaster coverage that may help you avoid damage due to natural calamities.

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