QUERY REGARDING EXPORT TO THAILAND.

[SANJEEV JADHAV]

Dear Experts, we have received an order from our Thailand customer and accordingly we are going to raise invoice for design drawing and development service. Recently our customer has sent an email stating that “Design, Drawing and Development Service” will be considered as Service and will be required by Thailand tax laws to deduct 15% withholding tax. We require your help in this regard, Is it the correct provision as per Thailand Tax Law and applicable to the Indian supplier. Hoping your kind cooperation and suggestions in this regard.

AI Summary

Inquire on 15% Withholding Tax for Design Services to Thai Client; Experts Advise Checking Tax Treaties. An individual inquired about the applicability of Thailand's tax laws on a service invoice for design, drawing, and development services provided to a Thai customer, specifically concerning a 15% withholding tax. Two experts responded. The first advised checking Thailand's tax laws and any existing double taxation avoidance agreements between Thailand and India. The second added that if the designs are sent physically, they are treated as goods under Indian law, whereas digital delivery is considered a service, and emphasized verifying any taxation treaties between the countries.