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ResourcesCorporate and Tax AdvisoryThailand Tax LawThailand Tax Forms: PND 3 and PND 53

Thailand Tax Forms: PND 3 and PND 53

Transcript of the above video:

As the title of this video suggests we are discussing these two forms; the PND 3 and the PND 53. I will slap those up there on the screen for you to see and kind of get an idea of what they look like. 

Basically, what are these forms for? Well these are withholding tax forms here in the Kingdom which pertain to things like consulting, management consulting, hiring various sort  of freelancers, things like transportation, business to business withholding tax as well as business to individual withholding tax. 

What are we talking about? For example a consultant can be a freelance Thai consultant who comes in on a one-off basis and does some brief consulting for a company or it could be a Consulting Corporation here in the Kingdom and depending on whether it's a natural person or a juristic person, may go ahead and dictate how these forms are going to be filed or the actual nature of the interaction between, for example a Thai juristic person or an outside consultant or some sort of outside service provider. The nature of that interaction may also dictate the amount of withholding tax that is going to go ahead and be assessed against that transaction. So these are basically forms that you're going to go ahead and utilize with respect to withholding. The reason I bring it on here is again, like many of the forms I have been mentioning on this channel with respect to Thailand tax, they do pertain rather often on quite a regular basis to the ongoing maintenance of a Thai company and filings need to be maintained with respect to these generally speaking on a monthly basis. So notwithstanding the fact that it is  withholding tax and that may not come up very often, when it does it needs to be dealt with and even if it doesn't, oftentimes filings need to be maintained to show the status of a Company and maintain the documentation related to the sort of accounting compliance associated with the Company.

Thai companies are not left to their own devices in a tax sense. They are very much like C Corporations in the United States; they do require ongoing maintenance. They are not like an LLC or a member-managed or just a one-man band sort of LLC, for lack of a better term sort of a cut-out company, they do require maintenance and again these forms generally are going to be required in the ongoing maintenance of a Thai company.

Another thing with respect to these is generally speaking they're going to have an Immigration and a work permit component associated with them. What I mean to say is generally speaking Immigration and in some cases the Labor Ministry will want to see the tax filings, especially the more recent tax filings of a company which is seeking a work permit or a business visa for an individual wishing to remain long-term in the Kingdom and work. and for this reason these forms, although they may seem like an accounting issue, may become very much an immigration and work permit issue as soon as a work permit is issued because maintaining and renewing those documents require various supporting documents which are very likely to include these documents right here.