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bigduckontax, Accountant
Category: Tax
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I have a question on Thai withholding tax. i have a client

Customer Question

I have a question on Thai withholding tax. i have a client who makes sales to Thailand and his payments are reduced by a withholding tax of 5%. He has a tax deduction certificate from the thai authorities.
Can this withholding tax be offset against UK Corporation Tax, or is it simply a charge against income?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
, I'm Keith and happy to help you with your question.
The Thailand with holding tax is quite normal and very common in international trade. The tax deduction certificate will be evidence of a tax credit available against UK Corporation Tax liability.
The UK and the Kingdom of Thailand entered into a double taxation convention as long ago as 1981, the aim of which is to preclude the same income stream from being taxed in both jurisdictions. This is achieved be means of tax credits, tax deducted by one country being allowed as a tax credit against any liability in the other.
I do hope I have set your mind at rest on this matter. By the by, I have a Thai wife and I am answering your query from Bangkok to whence I recently escaped the appalling weather in Blighty!
Expert:  bigduckontax replied 3 years ago.
Your question has come up again on my screen, but it may be a Just Answer glitch.
Customer: replied 3 years ago.
all is well and I have received your response thanks.
Expert:  bigduckontax replied 3 years ago.
It's doing it again, sorry! The fault has been reported.