The company has loan from foreign companies which it agree to return only the principal first. The interest will be paid later by notifying at Bank of Thailand. Will the tax be withheld and remitted from the principal paid?

Panwa : If there is evidence of money transfer that the company has notified to Bank of Thailand which states that the payment out to the lender (foreign) is the total principal payment without paying interest under Section 40 (4)(a) of the Revenue Code, the paying company is therefore not obligated to withhold tax under Section 70 of the Revenue Code in any way.

If you need any further consulting or discussion for tax matter and further assisting for tax matter, please note that we can assist for such click here.

For more information, please feel free to contact us:
Phone: +66 2 933 9000
Fax: +66 2 933 6120
Email: bkk@panwa.co.th

For more information, please feel free to contact us:

Office: +66 2 933 9000
Whats'App: +66 8 5713 1000
Email: bkk@panwa.co.th

Location: https://goo.gl/maps/MhJsbjkPrji51Qyt6
Sky train: Yellow Line, Chokchai 4 Station, Gate 4. Our office is located between Soi Latphrao 50 and 52.

For the case of the company has loan from foreign companies and it agrees to pay back the principal without interest first, such payment need to withhold tax?

The company has loan from foreign companies which it agree to return only the principal first. The interest will be paid later by notifying at Bank of Thailand. Will the tax be withheld and remitted from the principal paid?

For more information, please feel free to contact us:

Office: +66 2 933 9000
Whats'App: +66 8 5713 1000
Email: bkk@panwa.co.th

Location: https://goo.gl/maps/MhJsbjkPrji51Qyt6
Sky train: Yellow Line, Chokchai 4 Station, Gate 4. Our office is located between Soi Latphrao 50 and 52.

Address: 1560 Latphrao Road, Wangthonglang, Bangkok 10310, Thailand.