Duty and tax charges in Thailand are confusing. Calculating them can be challenging and it’s a common area that a lot of people get confused about when moving to or doing business in Thailand. I’ve seen a lot of posts that people have written about this subject and the information is very conflicting from person to person. To help you out, today we’ll be talking about some solutions to reduce the stress of calculating duties and taxes in Thailand. Let us know more detail about ‘Duties and Taxes In Thailand’.
Duties and Taxes In Thailand
If you’ve just started running a business selling goods or services to the Thai consumers (or if you are based outside Thailand and plan to start selling your goods or services in Thailand), you need to take note that your goods will be subject to duties and taxes at the entry point into the country.
For Starters
There are a lot of factors that affect the duty rates such as import regulations and other local laws. This is designed to help you determine what kind of duties and taxes are imposed on imported goods.
Different types of taxes and fees may apply when you bring personal belongings or goods over to Thailand and every traveller should be aware of Thailand’s duty-free allowance, as well as how to calculate duties and taxes on goods purchased locally, before leaving the country.
It’s important to understand that there are two types of taxes: import duties and consumption taxes.
Import duties are charged by the government on certain goods that are imported into a country.
For example, if you buy a car from Japan—even if it’s used—you will have to pay import duties on it when you bring it into Thailand because cars manufactured in Japan aren’t made for sale in Thailand. The amount of import duty varies based on the type of product being imported (for example, cars are taxed at a higher rate than clothes) and also depends on where the item was manufactured (for example, if an item is made in China and imported into Thailand, then there will be higher import duties than if it were made in Japan).
Duties are taxes on imported goods. They can be either specific or ad valorem, which means that they’re calculated as a percentage of the price of the good itself. For example, if your box of shoes costs $100 but you pay an extra $5 in duties, then your total cost is $105.
How Do I Know How Much I Have To Pay?
You can find out by using our simple calculator! Just enter the amount of money you paid for your item(s), then click “Calculate Duty Amount.”
The calculator will automatically calculate how much extra money will be added to your total bill. If you’re looking for a more hands-on approach, there are several ways for travellers to avoid paying too much in duties and taxes during their time abroad—and none of
The amount of duties and taxes you’ll need to pay when importing goods into Thailand is calculated by looking at the value of the goods and which category they fall into.
The duty rate depends on the product’s value, category, and country of origin, so it’s important to know this information to avoid paying more than necessary.
For example, if the value of your imports is less than 1 million baht (about $30,000), then there will be no import tax. But if your import exceeds that amount, then an import tax will be applied based on its value in Thai baht (THB).
Income Tax
If you are working in Thailand and have to pay income tax. You will have to get an income tax number from the tax office. Once that number is applied for you then you can invoice your employer for your work. When you send your bank file to either your accountant or your Thai employees there is a box for income tax paid by the company.
Do not fill it because some companies have been caught out by their accountant not filling this box up correctly and having to pay 50% again on what they have paid their staff.
Consumption taxes are charged by shops on items sold within their store or between different stores within a city or province. In some cases these taxes may be included as part of the price displayed on an item; however other times they may be.
It is important to remember that the fee charged for your visa does not include any other charges you may incur when entering Thailand. Fees for making and your own a landing in Thailand, as well as other customs processing, could easily double or triple the cost of a visa.
So, be prepared to pay more than the fixed cost seen here that is charged at the embassy. Before doing anything else, determine how much you will have to pay to enter Thailand. Doing so will save you a lot of unnecessary trouble later on down the road.
Conclusion
In conclusion, we realize that there are several factors to consider when determining how to calculate duties and taxes for products you are importing or exporting in Thailand. Given the volatile nature of duties, it is always best to contact a customs broker who specializes in performing customs clearance.
Up until now, calculating duty and taxes required more than a bit of addition and subtraction just to get a final number. No longer does that need to be the case. The Dutiable Value for Taxes (DVT) has been developed to help traders of all kinds calculate import duties and taxes quickly but accurately, using the most current information available from the Customs Department.
