:: Tax Courts

Tax cases are considered different in nature from normal civil cases. The Tax Court Establishment and Procedure Act, effective since 1985, provides special and accelerated procedures for tax litigation. Tax courts have authority to judge the following cases:

  • Appeals against the decision of tax officers or committees
  • Disputes over the claims of state tax obligations
  • Disputes over tax refunds
  • Disputes over rights or obligations concerning tax collection obligations. Disputes over the right or obligations regarding tax collection obligations
  • Other cases made subject to the Act as prescribed by other laws.
    Note: Decisions of the tax courts may be appealed to the Supreme Court within one month after the date of the judgment.

D. Tax Clearance Certificates
As of May 1991, requirements for tax clearance certificates have been significantly reduced. Provided that an individual demonstrates compliance with tax laws, he is not required to secure a tax clearance certificate within 15 days before leaving the country. 

Employees of businesses incorporated under foreign law, but which carry out business in Thailand, must acquire a certificate from the Revenue Department before departure. The requirement is not enforced if the individual has been in Thailand less than 90 days in any tax year and has not received any income.

E. Tax Reform
Thailand is actively pursuing reform of its tax system and taxes on industrial imports have already been sharply reduced. Over the past five years, the government has consistently moved to reduce import tariffs on machinery and raw materials. In August 1999, the government introduced a number of measures to encourage investment, including tariff cuts. One-hundred and forty-six tariff lines - 85 percent of the total number - had their rates cut to 0-five percent, notably on raw materials and capital goods.

:: Customs Duties

Tariff duties on goods are levied on an ad valorem or a specific rate basis. The majority of goods imported by businesses are subject to rates ranging from five percent to 60 percent

The majority of imported articles are subject to two different taxes: Tariff duty and VAT. Tariff duty is computed by multiplying the CIF value of the goods by the duty rate. The duty thus determined is added to the value of the goods determined with reference to the CIF price. VAT is then levied on the total sum of the CIF value, duty, and excise tax, if any. Goods imported for re-export are generally exempted from import duty and VAT.

As a part of the BOI' promoted companies are eligible to receive exemptions or reductions from import duties on raw and essential materials as well as machinery.

Further, companies that belong to the BOI's Investor Club Association (IC) are eligible to use the IC's Raw Materials Tracking System (RMTS) AND Machinery Tracking System (MCTS). For companies that take advantage of this service, release of raw materials and machinery can be done in three hours or less. For more information, please contact the Investor Club at:
Tel (662) 936 1429-40, ext 314, 315, 318.

All exported goods are exempt from export duties except raw hides and skins, wood and sawn (including lumber) items.

Interested persons can receive advice and additional information from the Export Promotion and Privileges Group, Customs Department at Tel: (622) 240 2513-6 or (622) 240 2513.

Electronic Data Interchange (EDI)
The Customs Department has improved its services by computerizing procedures with the Electronic Data Interchange system. EDI allows for customs entry information to be transferred via an on-line system. The trader may link to the system or may use a licensed customs broker. The EDI system helps entrepreneurs save costs and time because they can rapidly submit entry data for preliminary verification by customs officers, which takes no more than five minutes. Entrepreneurs will only need to meet customs officers for document verification; the rest will be processed through the EDI system.

The Customs Department has selected "UN/EDIFACT" as the standard format for the exchange of information between it and trading partners as well as other related organizations; The Federation of Thai Electronic Data Interchange (FTEDI) and Thai Industrial Standards Institute (TISI) have duly approved the internationally accepted UN/EDIFACT as the EDI standard for Thailand. For technical queries, telephone (662) 671-7151

Exporters or customs brokers submit export entry data via the EDI system. Upon verification, the exporter/broker will be notified and will then print export entries for submission at any customs office, together with other documents.

Good not subject to tariff and value verification can pass through green channels, whereas the goods subject to tariff and value verification must proceed through red channels for verification at the Export Procedure Sub-Division and for duty payment (if any).