Double Tax Agreement Thailand China

Inheritance Tax As mentioned in Chapter 15 Other taxes, Thailand came into force for the first time on February 1, 2016, inheritance tax. Thailand`s double taxation agreements do not deal with or mention inheritance tax. Therefore, the question arises as to whether inheritance tax is paid under Thai tax law and whether the deceased`s estate is charged in another country subject to inheritance and estate tax, or vice versa, whether the payment of inheritance tax in the first country is charged on the IHT bill in the second country. The Double Taxation Agreement with other countries applies only to income taxes, namely income tax, corporate tax and mineral oil tax. VAT, the specific business tax and others are excluded. Double taxation occurs when the same reported income is taxed by two or more different legal regimes. This can occur when an individual or business is established or operates in more than one country and is mitigated by double taxation agreements between countries. As a result, income is taxed only once. Avoiding double taxation Treaties generally provide that individuals and businesses in more than one country do not have to pay taxes on the same income or, in the case of double taxation, a credit is granted in the second country for taxes paid in the first country. The Double Taxation Convention applies to both individuals and corporations residing in the contracting states.

To qualify for contractual benefits, the person must be as follows: Thailand first introduced a double taxation agreement in 1963 (with Sweden) and since then has significantly increased the list. Currently, 55 countries have a mutual double taxation agreement with Thailand: in essence, qualified persons are more favourable for Thai tax purposes than under national law. If people in Thailand generate income but do not have a stable establishment in the country, their corporate income tax is exempt. In addition, under double taxation agreements, withholding tax on income paid to foreign legal entities that do not do business in Thailand may be reduced or exempt. Tax treaties aim to avoid double taxation and prevent tax evasion. As a general rule, they offer a means of granting a double payment of taxes on the same income to a person who has income that would normally be taxed in more than one country, or a tax credit for the tax paid in one country against the tax debt of a taxpayer in another country. In addition to providing benefits to taxpayers, double taxation agreements also provide for cooperation between governments in the prevention of tax evasion. Nationality Requirements In general, the nationality of the subject is not important for determining tax benefits under a tax treaty. Foreigners who have paid taxes in a tax country can generally benefit from the benefits of the contract, regardless of their nationality. 57. United States (only the 50 states and the District of Columbia) – 1997 If there is no stable establishment, only certain income categories, such as interest, dividends and royalties, can be taxed in the country where income is generated.

In most cases, the tax rate on these incomes is generally reduced from the tax rate for residents from non-conventional countries.