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TAX CLEARANCE CERTIFICATE

Thailand Tax Clearance Certificate

A Thailand Tax Clearance Certificate is an official document issued by the Revenue Department to a foreigner who is departing Thailand. This certificate confirms that the foreigner is tax compliant and of good standing. This involves the settlement of corresponding taxes or by providing a guarantor or securities as guarantee for tax liabilities.

 

Circumstances where a foreigner need a Thailand Tax Clearance Certificate
  • You are liable to pay tax or tax arrears before departing Thailand;
  • You have the duty to file a tax return and pay tax on behalf of a company or juristic partnership incorporated under foreign laws and has been carrying on business in Thailand; or
  • You have a taxable income, whether or not in Thailand, from being a public performer in Thailand.

 

It is necessary for a foreigner, under those circumstances, to apply for a Tax Clearance Certificate within 15 days before leaving the country. They must then present this to the Immigration Office on the departure date.  Otherwise, there shall be a surcharge liability at the rate of 20% of the tax amount.  In addition, the foreigner shall be subject to a fine not exceeding 1,000 Baht or an imprisonment for not more than 1 month, or both.

 

There is no need to apply for this if a foreigner is transiting through Thailand, or entering or residing in Thailand for a period or periods aggregating not more than 90 days in a tax year without earning assessable income.

 

Types of Thailand Tax Clearance Certificate

P.3 is issued to a foreigner who is temporarily departing Thailand.  It is valid for a single departure and the holder must use this within 15 days from the issuance date.

 

P.3.1 is issued to a foreigner who enters and leaves Thailand on a regular basis due to his business or profession.  It is valid for multiple departures within the period specified in the Certificate but not exceeding 180 days from the issuance date.  In addition, this is not renewable.

 

Requirements for a Tax Clearance Certificate Application

A foreigner must prepare the following documents:

 

Tax Clearance Certificate Form P. 3

1. Passport

2. Alien Certificate (if any)

3. Residence Certificate (if any)

4. Work permit or an application thereof (if any)

5. Tax Identification Card

6. Letter of guarantee (if having tax liabilities or payable) issued by:

  • Bank with guaranteed amount exceeding tax liabilities or payable or 50,000 Baht; or
  • Person whose securities are greater than his tax liabilities or payable and whose reputation is acceptable to the Director-General of the Revenue Department, the provincial governor, the assignee or a government officer of level 6 or equivalent or higher.

7. Tax payment records for the past three years of the company or juristic partnership, which is represented by the applicant for a Tax Clearance Certificate including withholding tax receipts or tax receipts

8. Other evidence as required by the Director-General of the Revenue Department

 

Tax Clearance Certificate Form P. 3.1 1.

1. The above documents 1-7

2. Evidence indicating the reasons for departing Thailand on a regular basis in connection with the business or profession of the foreigner

3. Evidence indicating that his assets in Thailand are greater than his tax liabilities or tax payable

 

Loss of Tax Clearance Certificate

In case of loss, the foreigner must obtain a replacement from the office where the application was filed. However, its validity only remains until the expiry date of the former Certificate.

 

Reference: The Revenue Department