Remote Work Tax Thailand
Assess your remote work corporate tax / Permanent Establishment (PE) risks in Thailand
Are you planning to hire in Thailand?
Launching a remote work policy?
Have your employees already spent time working in Thailand?
Or are you wondering whether you should approve a future trip by an employee to Thailand?
Through our remote work tax assessment, we cover all angles to ensure you remain compliant for all local regulations and avoid the costly mistake of creating PE in Thailand, which leads to corporate tax filing obligations.
How we can help
Schedule a call with our team to investigate the circumstances behind your in-country presence and resulting obligations.
Length of time. Frequency. Seniority of position. Type of work. Industry. Decision making process. Contract execution. IP generation. Data transfer.
All these things need to be considered to understand whether you create PE or have filing obligations.
Key Permanent Establishment tax risks in Thailand impacted by remote work
A foreign company will be treated as carrying on business if it has a registered branch or its agent or employees conduct business in Thailand.
In general, PE is understood as a fixed place where the business of the company is carried out but can be divided broadly into three categories:
- Asset PE: A place of management, a branch, an office, a factory, a workshop, a mine, an oil or gas well, a quarry or any other place of extraction of natural resources, a farm or plantation, a warehouse in relation to a person, providing storage facilities for others, rented offices.
- Activity PE: Is triggered if a company supports a building site, construction, installation or an assembly
project and such specific activities exist for more than 6 months in Thailand.
- Agent PE: A person that habitually has the authority to negotiate and conclude sales contracts on behalf of the foreign company in Thailand; a person that does not have such authority, but habitually maintains a stock of goods or merchandise from which he regularly fills orders or makes deliveries on behalf of the foreign company; a person habitually securing orders in Thailand wholly or almost wholly for the foreign company or other enterprises which are controlled by it or have a controlling interest in it.