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Thailand witholding tax experience

breaking new ground experience on witholding tax..

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saas business looking to deal with 'a clients uk  group co being a sub' which is a Thai based business.  The sub are stating that 5% withholding tax WILL be deducted @ source in paying the respective invoices.

anyone had experience in dealing with thai business and thai tax

is the thai tax recoverable- offsetable against uk CT - or even deductible

any forms [like w8ben in usa] to get remittances of 100%

many thanks

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By Accountant A
22nd Nov 2017 21:18

I believe there is a Double Taxation Convention between the UK and Thailand. Ask your accountant to look at that for you. He/she will also know how to deal with any withholding tax that cannot be reduced to zero.

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By MJShone
23rd Nov 2017 14:25

You need to ask the Thai company what it's required to withhold under Thai law. It sounds like you've done that and the reply is 5%.
You then need to consult the tax treaty between Thailand and the UK: https://www.gov.uk/government/publications/thailand-tax-treaties
You need to know what article of the treaty you're dealing with. It's not always obvious. In particular some payments that you wouldn't normally think of as royalties can fall into that article depending on the treaty (eg Argentina). The treaty may reduce the WHT to nil.
You then need to make sure your Thai client agrees with you about which article of the treaty applies and ask them what they need in order to apply the treaty withholding rate. What's needed varies from country to country. The US is easy - W8-BEN. Some countries are more difficult eg Argentina requires an apostilled certificate of tax residence from HMRC plus confirmation from HMRC that the UK business doesn't have a permanent establishment in Argentina.
Good luck!

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