INCOME TAX

Under the Revenue Code, the Company is required to prepare and file a corporate income tax return together with an approved and audited balance sheet and payment of the tax, if any, to the Revenue Department not more than 150 days after the end of the Company's fiscal year. The rate of corporate income tax is 30% on net profit for companies with registered capital more than 5,000,000 baht.

For the half year, the Company must estimate the net profit or loss for the full fiscal year in a half year corporate income tax return and pay income tax on half of the estimated full year's profits, if any. This return and paymentt must be made to the Revenue Department within two months of the end of the first half of the Company's fiscal year. This payment is treated as credit against the income tax payable at the end of the Company's fiscal year.

WITHHOLDING TAX

The Company is required to withhold personal income taxes attributable to salaries and other compensation paid to its employees and withhold taxes on other payments, such as rents at a rate of 5% and service fees at 3%. A withholding tax return must be filed and withheld taxes must be paid to the Revenue Department within seven days of the end of the month in which the salaries were paid or payments made.

VALUE-ADDED TAX

Generally, the Company is required to register for Value-Added Tax (VAT) within 30 days of its commencement of business. The rate of VAT is 7% and the Company is obliged to add the VAT to the cost of goods or service fees. Certain types of business are exempt from VAT, such as agricultural products and professional services, e.g. doctors, auditors and litigators. The VAT returns must be submitted together with the payment, if any, to the Revenue Department by the 15th of the following month. The Company must prepare and summarize the VAT for both inputs and outputs in a form prescribed by the Revenue Department.

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