Thailand-Ireland Double Tax Treaty

Updated on Friday 09th September 2016

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The Thailand - Ireland Double tax treaty was signed in 4 November 2013. The aim of such a treaty is to avoid double taxation and avoid fiscal evasion. Double taxation occurs when the same income or capital gain is taxed by two countries. It generally happens when the income is generated in one state and is paid to a resident of another state.

Main characteristics of the Thailand-Ireland double tax treaty

The main aspects of the Thailand-Ireland double tax treaty are as follows:

•    An Irish organization may be taxed on net profits if it is undertaking its activities in Thailand – meaning, if an agent or employee of the Irish business in Thailand is generating revenues for the Irish organization;
•    The Irish organization should have Thai permanent residence also, in order for it to be taxed by the Thai authorities. Our company registration professionals in Thailand can offer more details on this subject;
•    Withholding tax: The Thailand-Ireland double tax treaty makes, among others, the following changes:
     o    If the entity does not have permanent residence, non-specific income will not be taxed;
     o    Generally, rental payments are categorized as a type of royalty paid for the utilization of industrial, trading or scientific equipment and is subject to a reduced withholding tax rate of 10%;
     o    Royalties paid for the rights to utilize the copyright  of artistic, literary or scientific works, as well as software, will be taxed at a rate of 5%. Other types of royalties will be charged at a normal 15% tax rate.

Thailand citizens leaving outside Ireland

If leaving outside of Ireland, foreign citizens have to pay any taxation owed for the previous year, as well as the current year. A tax return can be submitted before or after leaving the country and has to declare the foreign citizen’s income and deductions from the beginning of the tax year until the date the individual left the country. If he or she left Ireland before the beginning of the tax year, the anterior year’s taxes are due. If it causes an overpayment, a refund is possible after making a claim.

The Thailand-Ireland double tax treaty tends to be quite complex. If you are an Irish foreign investor doing business in Thailand, our Thai company formation advisors can provide you with guidance on the taxation agreement made by Thailand and Ireland in order to make sure you save your money on taxes in both countries; please contact us for assistance.


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