Registering a company and tax matters is a headache for many people, especially entrepreneurs of this era. For those who don’t have much knowledge of the subject, they’ll need to get to know more about taxes than ever before. Because taxes matter.
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After registering a company, there are 5 types of taxes that must be properly paid as follows:
1. Corporate Income Tax
It is a tax levied on a legal entity that is obliged to pay taxes in accordance with the law. This type of tax is collected on business people who register their businesses in the form of corporations or partnerships, meaning that our business is definitely liable to pay this type of tax. There are two forms of corporate income tax returns: PND 50 returns; Taxes for accounting periods must be filed within 150 days after the closing date and PND 51 returns must be filed within two months after the half-year tax accounting period.
2. Withholding tax
This tax sounds like legal language, but simply put, it’s a tax that’s deducted \”in advance\”, meaning that we can get this type of tax refund.
3. VAT
For this VAT, many people will feel that it is imminent, because in order for us to buy groceries, we have to pay this type of tax automatically. For business people This tax is a tax collected on the value of the increase in value from people doing business or providing various types of services by those who are responsible for vat, i.e. entrepreneurs. Importers, manufacturers, service providers, etc., who must have an annual income of 1.8 million baht or more, regardless of whether the business is a natural person or a juristic person.here
4. Specific business taxes
This type of tax is collected on specific businesses by name, including commercial banking, pawnshops, real estate, etc. Anyone who doesn’t do this type of taxable business can skip it.
5. Stamp duty
Stamp duty is a small expense, but it is also classified as another type of tax under the Revenue Code. It is charged upon the making of 28 instruments, as defined in the stamp duty account, with the crossing representing the use of such stamps. Details can be found on the revenue’s web site, however, tax matters, if we do business differently, there will be differences. As for the difference between the taxes collected and the businesses that sell goods and the businesses in the service, it looks like a similar tax, but in fact there are different details, with taxes collected and businesses selling most goods being taxed. There are also businesses that sell real estate products that are subject to specific business taxes.
For businesses that sell services primarily taxable, specific businesses include:
- Banking, in accordance with commercial banking laws or specific laws.
- Capital Business Securities Business Credit Fonzier Business, In accordance with the Law on Capital Business Securities and Credit Fonzier Business
- Life Insurance According to the Law on Life Insurance
- Pawning according to the law on pawnshops
- Business operations are usually conducted by commercial banks, such as lending guarantees. Exchange currency, issue, buy or sell bills, or send money abroad in various ways, and in the future it may mean start-up businesses such as fintech, etc.
Does registering a company help save more taxes?
It can be seen that the transition from an individual to a legal entity requires more multiple taxes. In spite of the fact that most business owners want to pay less in taxes, this is because the tax thresholds of individuals and companies are different. The criteria for determining the value of taxation between individuals and juristic persons are as follows:
- Personal income tax rate Tax up to 35%
- Corporate income tax rate up to 20%
Even if the above corporate tax rate is cheaper than the individual tax rate, this does not mean that registering a company will always make you pay cheaper taxes because you will have to take into account the income, expenses of that type of income, including: You will need to do accounting by specifying the actual company expenses and increase the cost of accounting. You will need a profit or net income of 800,000 baht per year or more (details depend on the type of business) if the company is registered. In case there is a problem whether a business is a normal business operation of a commercial bank or not. The Director-General of the Revenue Department may propose to the Taxation Diagnostic Committee to determine the scope and conditions of such business, and once the Taxation Committee has made its decision, the decision shall be announced in the Gazette. Business people who aren’t sure how we’re taxed or what documents need to be documented and delivered. It’s a good idea to find a consultant like an accounting firm so that the business can operate as smoothly as possible. Further consultation can be found at Line ID : plusitiveaccounting
Article by taxbugnoms, iTax
Compiled by Plusitive Accounting Team
