Double Taxation Agreement Between Thailand And Australia
As mentioned above, Thailand has two categories of taxpayers: residents and non-residents. Under Thai tax law, residents would have to pay income tax on the income you generated in Thailand and on income generated outside the country. 1 Australia`s income tax agreements will be subject to income tax by the International Tax Agreements Act of 1953. The agreement between the Australian Bureau of Trade and Industry and the Taipei Economic and Cultural Office on the prevention of double taxation and the prevention of income tax evasion is a less treaty-compliant document, adopted as Schedule 1 of the International Tax Agreements Act of 1953. The Double Taxation Convention applies to both individuals and corporations residing in the contracting states. To qualify for contractual benefits, the person must be from: There is an interesting difference here to take into account between the Australian and Thai tax systems, and it is worth thinking about. The Thai tax system only allows you to claim a standard deduction on salary income. The deduction is 40% of gross income, but it is limited to 60,000 baht. For every salary above 150,000 baht per year, the maximum deduction is 60,000. For expatriates earning more than this amount, it would be tempting not to bother to keep records and revenues on actual expenses that have been made because they cannot be claimed in Thailand.
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. For the most part, qualified people are more favourable for Thai tax purposes than in 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. If you are not a resident for Australian tax reasons, you do not have to pay income tax on income you have collected outside Australia.