Getting money from overseas

[Damenz]

Right now I am operating a small business in Thailand dealing with tourism. Partnership with various companies such as Trip Advisor, Getyourguide.

Let say, I ask Trip Advisor to remit funds to my SG account. for example 20k - 30k sgd per month. Will I need to pay taxes to IRAS?

The business doesn't concern Singapore at all, however, I have a sinkie citizenship

And the money coming from either Australia or Germany.

Reason: I am thinking this maybe a solution for me, as Thailand Business Taxes is rocket high. As they tax me on Gross Profit rather than Net Profit. Which is kinda

For example: Selling a program for $10, paying supplier at $8, net profit should be $2. But they want to tax me based on $10 x 12%. Which is already somewhat I earn.

So in this case, I will be getting 0.80 cents instead to $2.

Any helpful advice will be appreciated.

FYI: IRAS posted this:
Overseas Income Received in Singapore
Generally, overseas income received in Singapore on or after 1 Jan 2004 is not taxable and need not be declared. This includes overseas income paid into a Singapore bank account.

All income received in Singapore from outside Singapore that is not sourced in Singapore by resident individuals is tax exempt. These include overseas income paid into a Singapore bank account. However, this does not include income received in Singapore from outside Singapore obtained through partnerships in Singapore or overseas employment that is incidental to your Singapore employment.

 

[yoongf]

Are u getting the correct tax advice? Taxes are almost always on profit.

https://www.siam-legal.com/Business-in-Thailand/thailand-corporate-tax.php

 

[Damenz]

As online business is still new for thailand. Therefore they claim there is no way to check how much is the net profit.

 

[BBCWatcher]

As online business is still new for thailand. Therefore they claim there is no way to check how much is the net profit.

Who is “they”?

 

[kelhot2001]

Right now I am operating a small business in Thailand dealing with tourism. Partnership with various companies such as Trip Advisor, Getyourguide.

Let say, I ask Trip Advisor to remit funds to my SG account. for example 20k - 30k sgd per month. Will I need to pay taxes to IRAS?

The business doesn't concern Singapore at all, however, I have a sinkie citizenship

And the money coming from either Australia or Germany.

Reason: I am thinking this maybe a solution for me, as Thailand Business Taxes is rocket high. As they tax me on Gross Profit rather than Net Profit. Which is kinda

For example: Selling a program for $10, paying supplier at $8, net profit should be $2. But they want to tax me based on $10 x 12%. Which is already somewhat I earn.

So in this case, I will be getting 0.80 cents instead to $2.

Any helpful advice will be appreciated.

FYI: IRAS posted this:
Overseas Income Received in Singapore
Generally, overseas income received in Singapore on or after 1 Jan 2004 is not taxable and need not be declared. This includes overseas income paid into a Singapore bank account.

All income received in Singapore from outside Singapore that is not sourced in Singapore by resident individuals is tax exempt. These include overseas income paid into a Singapore bank account. However, this does not include income received in Singapore from outside Singapore obtained through partnerships in Singapore or overseas employment that is incidental to your Singapore employment.

I think all incomes even derived from oversea are taxable if the company is register in Singapore. But I do remember I did claim something like

Certificate of domicile (indonesia)
NRCT - IR97 for new zealand
Certificate of Residence for SIngapore

You can apply for this if you want to declared

https://www.iras.gov.sg/irashome/Businesses/Companies/Working-out-Corporate-Income-Taxes/Companies-Receiving-Foreign-Income/Applying-for-COR/-Tax-Reclaim-Form/

 

[Damenz]

Who is “they”?

RD Department from Thailand. I paid what I think is correct based on Net Profit. However, they want to charge me and ask me to pay back the correct amount based on gross profit with interest.

 

[BBCWatcher]

RD Department from Thailand. I paid what I think is correct based on Net Profit. However, they want to charge me and ask me to pay back the correct amount based on gross profit with interest.

That sounds like fun. (Not.)

I'm hardly an expert on Thai tax rules, but according to what I can find the Thai tax authorities have the absolute discretion to apply what's called a "gross receipts tax" if they are not confident in your net profit figures. It sure sounds like they're not trusting your net profit figures. There doesn't seem to be any recourse here. If they want to apply the gross receipts tax rate, they can -- their call, in their absolute discretion. However, the gross receipts tax rate is 5%, not 12%.

Are they applying a 5% tax against your gross receipts? Less any tax you've already paid (assuming it was timely), plus accrued interest and penalties on the difference between what you paid and the 5% gross receipts tax?

Do some research and get some professional help, if possible, but essentially I think you'll need to check their numbers according to their own rules (gross receipts tax, it would appear) and see if they got the calculation right. If they didn't, then you could try negotiating for the correct calculation.

There's also a 7% VAT rate, and 5%+7%=12%. Is that how they got to 12%? Seems like too much of a coincidence...and unfortunately for you, they're probably correct.

 

[Damenz]

That sounds like fun. (Not.)

I'm hardly an expert on Thai tax rules, but according to what I can find the Thai tax authorities have the absolute discretion to apply what's called a "gross receipts tax" if they are not confident in your net profit figures. It sure sounds like they're not trusting your net profit figures. There doesn't seem to be any recourse here. If they want to apply the gross receipts tax rate, they can -- their call, in their absolute discretion. However, the gross receipts tax rate is 5%, not 12%.

Are they applying a 5% tax against your gross receipts? Less any tax you've already paid (assuming it was timely), plus accrued interest and penalties on the difference between what you paid and the 5% gross receipts tax?

Do some research and get some professional help, if possible, but essentially I think you'll need to check their numbers according to their own rules (gross receipts tax, it would appear) and see if they got the calculation right. If they didn't, then you could try negotiating for the correct calculation.

There's also a 7% VAT rate, and 5%+7%=12%. Is that how they got to 12%? Seems like too much of a coincidence...and unfortunately for you, they're probably correct.

If remitting from overseas (Aus or Germany) to SG account is possible without any complication or consequence.

I could use third-party service such as Transferwise to remit back the amount to the supplier in Thailand which I suppose to pay for.

Actually, I don't mind paying taxes in Singapore however if I told them this is business from Thailand. I will afraid they will check with Thailand RD and I may Kanna something else like money laundering charges or Tax evasion.

 

[yoongf]

If u are conducting an international online biz, arent u better off doing it as a sg registered entity? Tax rates are lower n lesser red tape.

Income derived from off shore biz are not taxable in sg.

 

[Damenz]

Not exactly, if operating in SG will require to apply for a license from the tourism board. However, I already have a license in Thailand.

 

[Hafi]

thats tax evasion if I understand you correctly.

Try to incorporate in Singapore if possible and for license required, its better to check with Tourism board to waive it off since you are not operating locally.

A lot of blockchain and crypto companies also incorporate in Singapore but their bases and operation offices are elsewhere. Learn from them how they are doing it.