Category: Tax Judgment

Q: Is a hire-of-work document, which is signed and states the employer’s and contractor’s address, subject to stamp duty? A: A document setting out hire of work details, including the names of the employer and contractor, the date, reference number of the document, code, item, amount, price per unit, and total price, with or without the signatures, and which requires the employer’s order each time, Shall not be deemed as meeting the required characteristics of a hire-of-work agreement. Instead, it is only evidence of the juristic act in accordance with Section 587 of Civil and Commercial Code which prescribes that “the hire of work is a contract whereby a person, called contractor, agrees to accomplish a definite work for another person, called employer, who agrees to pay him a remuneration of the result of the work. Thus, such document shall […]

Q : Is the money derived from the dissolution of a limited partnership that the partner received deemed as a dividend or share of profits and is the partner entitled to claim it as a tax credit? A : No, such money is not deemed as a dividend or share of profits that can be claimed as a tax credit in accordance with Section 40 (4) (b) of the Thai Revenue Code (“TRC”), in conjunction with Section 47 Bis of the TRC. Instead, only the portion that exceeds the capital deemed as a benefit that the partner received in accordance with Section 40 (4) (f) of the TRC. Supreme Court Judgment No. 13935/2555 The TRC does not prescribe a specific definition of dividend and share of profits, hence its definition shall be determined based on Section 1084 of the Civil […]

Q : Whether a loan agreement without a stamp duty or with a stamp duty but not be cancelled is admissible in order that the Plaintiff shall be liable under the Act on Offenses Arising from the Use of Cheque B.E. 2534 (“Cheque Act”)? How? A : A loan agreement is one of the instruments that shall be stamped in accordance with Clause 5 of Stamp Duty Schedule. If the instrument is not stamped or it is stamped but not cancelled, it shall be deemed the instrument not duty stamped in accordance with Section 103 of Thai Revenue Code (“TRC”), resulting in being inadmissible evidence in civil case in accordance with Section 118 of the TRC. Thus, in criminal prosecution regarding the liability under the Cheque Act, despite the fact that the Defendant issues a cheque to pay the Plaintiff […]

Q : Shall the business operation on goods transportation inside and outside Thailand be liable for VAT and how is it? Shall the input VAT on the goods transportation outside Thailand be taken as a tax credit in VAT computation? A : The business operations on the goods transportation from inside to outside Thailand and the goods transportation from outside to inside Thailand are deemed business partially performed or service used in Thailand and shall be subject to VAT. Nevertheless, the business operation on the goods transportation outside Thailand from one country to another country despite the client correspondence or client contact done in Thailand is deemed business of which none of its part performed or service not provided in Thailand. Therefore, it shall not be subject to VAT in accordance with Section 80/1 (3) of Thai Revenue Code (“TRC”), […]

Q : Can the bankrupt file a tax lawsuit with the Tax Court? A : No, the bankrupt cannot due to the fact that the power to file a lawsuit belongs to the official receiver pursuant to Section 22 (3) of the Bankruptcy Act B.E. 2483 (1940). The Supreme Court Judgment No. 13989/2558 (2015) The Plaintiff filed a lawsuit with the Tax Court to revoke the personal income tax assessment as per the notification letter and revoke an appeal decision on such assessment. In this case, a dispute is about the Plaintiff’s property. Therefore, when the Plaintiff filed this lawsuit, the plaintiff already became bankrupt. The power to file this lawsuit belongs to the official receiver according to Section 22 (3) of the Bankruptcy Act B.E. 2483 (1940). Despite the fact that the Plaintiff filed a request with the official […]

Q : Is the value-added tax (“VAT”) registrant entitled to use the remaining VAT credit for the VAT payment in the month that is not the following month? If not, what liability will a VAT registrant receive? A : The VAT registrant is not entitled to use the carried forward remaining tax credit to pay VAT in any other tax month other than the following tax month. If the VAT registrant wrongly utilizes the remaining tax credit to pay VAT in the month that is not the following month, insufficient tax payment in such tax month can result. Consequently, the VAT registrant shall be liable for the remaining amount of tax payable together with a surcharge of 1.5 percent of the payable tax per month or fraction thereof, excluding fine, in accordance with Sections 84 and 89/1 of the Thai […]

Q : Whether a non-taxable person who has already filed the tax return to Revenue Department is entitled to submit a request for the tax refund. If applicable, how long is the period of refund? A : A non-taxable person who has already filed the tax return is entitled to claim for the tax refund by submitting the request for the tax refund within three years from the due date of the filing of tax return. In the case where the tax return is filed after the due date stipulated by Thai Revenue Code (“TRC”) or within the due date extended or postponed by the Minister or Director-General, a non-taxable person shall submit a request for tax refund within three years after the filing date. Furthermore, in the case where a non-taxable person has appealed or has a case in […]

Q : Is Revenue Department officer allowed to offset tax liability and surcharge from a tax refund eligibly received for the tax payment? A : No, the Revenue Department officer (“Officer”) is not entitled to do so. Due to the fact that the function of tax surcharge is to punish a taxpayer for the non-performance or incomplete payment of tax, the tax surcharge is not regarded as a kind of interest pursuant to the Civil and Commercial Code (“CCC”). As a result, the Officer is not entitled to offset the tax surcharge from a tax refund prior to offsetting from the tax liability (Principle obligation) pursuant to Section 329 paragraph 1 of the CCC. Nevertheless, the Officer is required to offset the tax liability from the tax refund at first. If there is a remaining amount of the aforesaid tax […]

Q : Is the taxpayer eligible for receiving the tax refund interests ? A : According to the rules and conditions prescribed by the Ministerial Regulations, a taxpayer is eligible to receive interest on their tax refund calculated at the rate of 1% per month or part of the month from when it applies, based on the amount of their tax refund, subject to the conditions that such interest shall not exceed the amount of the tax refund and it must be paid out of tax collected under the Revenue Code. Supreme Court Judgement No.2567/2560 Interest on the tax refund is calculated from the point of three months after a taxpayer files for their tax refund up to the date that appears on their tax refund notice. The documents submitted by the Plaintiff showed that he paid more VAT than […]