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ResourcesCorporate and Tax AdvisoryThailand Tax LawThailand Tax Forms: PP 30 Value Added Tax (VAT) Payment Form

Thailand Tax Forms: PP 30 Value Added Tax (VAT) Payment Form

Transcript of the above video:

As the title of this video suggests we are discussing VAT filing forms which is a specific type of Thailand tax form the PP 30; the Por Por 30 as they say. This pertains to VAT that is Value Added Tax in the Kingdom.

As of the time of this video VAT is currently being assessed at 7% although as noted in prior videos on this channel, that is basically being kept in effect by sort  of year on year temporary measures. When it was first brought into effect it was a 10% VAT which was subsequently lowered and that has stayed in effect through usage of temporary, basically temporary power on the part of the state, to go ahead and maintain that VAT at a rate of about 7%.

The PP 30, which is this form right here, this form goes ahead and deals with one's VAT assessment on a monthly basis. There is sort of a credit/debit system associated with VAT. If you essentially pay out more in VAT than you take in any given month it is sort of offset. That being said, at the end of the day most companies are at least going to pay something of VAT; at least that has been my experience, although there are months where you can have these really anomalous circumstances where there is a massive VAT credit; it does happen.

The thing to take away from this video though is, this is a this is the form and the thing that should be noted specifically when it comes to issues surrounding VAT is regardless of the fact whether income came into the company on which VAT may be payable on, a company still needs to go ahead and file this form regardless of the income of the company. Even a zero filing has to be done. These are required monthly filings. They are not necessarily circumstantially dependent on whether or not tax needs to be paid. Even if tax does not need to be paid, even if 0 is the amount that is being assessed on the Company, the form itself still needs to go ahead and be filed. So that's a little bit different than some of the other forms associated with Thai tax. VAT is a very important component of the Thai tax system and for that reason it has been my experience, the Revenue Department takes VAT filings very, very seriously and failure to file within the allotted deadline associated with the monthly filings can result in fines and penalties. 

Another thing to think of for foreigners in this context. It has been my experience having gone through many, many times the business visa extension process, things like work permit renewals, it has been my experience that officers scrutinizing the company's financial situation when determining whether or not to go ahead and issue a long-term business Visa especially, VAT filings such as these and the records associated therewith, it has been my experience that those are of a special note to the Officers scrutinizing those kind of applications and for this reason the PP 30 is an extremely important form, if not only from a tax compliance standpoint, but also with respect to renewal of business visas and work permits here in the Kingdom of Thailand.