Essentially, qualified persons are placed in a more favourable position for Thai tax purposes than those provided for by national law. If people in Thailand earn income but do not have a permanent establishment in the country, their income tax on corporate profits is subject to the exemption. In addition, withholding taxes on the income of foreign legal persons not operating in Thailand may be reduced or exempted under double taxation treaties. Thailand first introduced a double taxation treaty (with Sweden) in 1963 and has since significantly increased the number of lists. At present, 55 countries have a mutual double taxation agreement with Thailand: double taxation occurs when the same reported income is taxed by two or more different jurisdictions. This can happen when an individual or company is or works in more than one country and is mitigated by double taxation treaties between countries. As a result, income is taxed only once. Tax treaties deal with the prevention of double taxation and the prevention of tax evasion. They generally provide a means of exempting a person who has income normally taxed in more than one country from the double payment of tax on the same income or tax paid in one country on the taxation of a taxpayer in another country. Double taxation treaties not only provide benefits for taxpayers, but also provide for cooperation between governments in the prevention of tax evasion. Avoiding double taxation Treaties generally provide that individuals and businesses do not have to pay taxes on the same income in more than one country or, in the case of double taxation, a credit is granted in the second country for the tax paid in the first country.
The competent authorities of the States Parties shall regulate by mutual agreement the nature and effect of such restriction. The double taxation convention concerns both natural and legal persons established in the States Parties. To be entitled to contractual benefits, the person must be of the following persons: Inheritance tax As mentioned in Chapter 15 Other taxes, Thailand first implemented inheritance tax on 1 February 2016. Thailand`s double taxation treaties do not address or mention inheritance tax. As a result, the question arises whether inheritance tax is paid under Thai tax law and whether the deceased owns assets in another country subject to inheritance and inheritance tax, or vice versa, whether the payment of inheritance tax in the first country is charged to the IHT invoice in the second country. This Convention shall not affect the tax privileges of diplomatic representatives or consular agents, in accordance with the general rules of international law or the provisions of special agreements. Upon signature of the Agreement between the Republic of Indonesia and the Kingdom of Denmark on the Prevention of Double Taxation and the Prevention of Tax Evasion with Income Tax, the undersigned agreed that the following provisions form part of the said Convention: the Double Taxation Convention with other countries applies only to income tax, namely income tax, corporation tax and mineral oil tax. . . .