Multinationals May Calculate Taxes in Other Currencies

Photo : Philip Brewer / Flickr

BANGKOK —  International companies operating in the kingdom can now work out their tax expenses in dollars, yen, rupees or any other currency, the cabinet said Tuesday.

In a bid to attract transnational companies to Thailand, the interim cabinet approved calculation of corporate income taxes and petroleum income taxes in foreign currencies instead of converting them into Thai baht.

“From now on they can calculate tax in the currency they are operating in order to reflect real performance without being affected by currency fluctuations,” said Kobsak Pootrakool of the Prime Minister’s Office.

Kobsak said the policy would not impact tax collection. He said the regulatory relief was aimed at attracting more multinationals to establish headquarters and conduct transactions in Thailand.