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Research by Country/Region January 21, 2018  
THAILAND: CUSTOMS, TAXES, and DOCUMENTATION REQUIREMENTS: IT PRODUCTS and SERVICES IMPORTS

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A. Is this country a member of the Information Technology Agreement?

B. Customs documentation requirements for IT products

C. Software: duties and taxes, updates, licenses, electronically delivered

D. IT services: tax treatment and other regulations

E. Refurbished, used, or repaired computer equipment imports


A. IS THIS COUNTRY A MEMBER OF THE INFORMATION TECHNOLOGY AGREEMENT?
YES. However, Thailand will not eliminate tariffs fully on certain products until 2005. See its tariff schedule on the WTO site.
Signatories to the Information Technology Agreement (ITA) have eliminated their import duties on a wide range of information technology products, including software and computer hardware. For more information on the ITA, and exact tariff elimination schedules of signatories, click here.
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B. CUSTOMS DOCUMENTATION REQUIREMENTS FOR IT PRODUCTS

What are the documentation requirements for the physical import of software? For other information technology products?
Commercial invoices, brochures, product literature, and shipping documents are required for the physical import of software and other IT products.
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C. SOFTWARE: DUTIES and TAXES, UPDATES, LICENSES, ELECTRONICALLY DELIVERED

DUTIES AND TAXES ON SOFTWARE IMPORTS

Are duties assessed on the intellectual property of the software or on the medium on which is it presented?
The duties apply directly to the type of medium and the commercial value of the software.

Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?

Is customized software treated differently than packaged software?
Customized software is treated the same way as packaged software.
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IMPORTS OF SOFTWARE UPDATES

What are the customs duties and tax implications for software sold with updates when the full sales price, including cost of updates, is shown on the original commercial invoice? Are duties and taxes paid on that amount? What happens when the updates are sent at a later date? Are duties/taxes applied again? If so, based on what value? How should information presented on the commercial invoice for the original and subsequent shipments to avoid paying duties/taxes more than once on a single sale?
The customs duties apply on the software sales price or value specified on the commercial invoice, no matter what the update cost is. Duties and taxes are applied again, based on the commercial invoice of the product. For example, if the Beta Test is imported without a declared value, the duties will apply to the price of the medium (e.g. $20 or more per CD-ROM). If the updates are sent later, the duties will apply again based on the commercial value of the updated software.
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SOFTWARE LICENSES: CUSTOMS CLASSIFICATION, IMPORT DUTIES, TAXES, OTHER

Are software licenses classified in Harmonized System 4907?
Yes, software licenses are classified in Harmonized System 4907.

Are import duties/taxes applied? If so, on what cost/price base are they levied?
Import duties on licenses are 0%.

Are withholding or other additional taxes applied on software licenses? If yes, how?
Software licenses are classified as products. A 7% Value Added Tax (VAT) is applied on top of the commercial sale price to purchasers.

If a U.S. license agreement is included in the packaging or is part of the installation/registration of shrink-wrapped software imported from the United States, would that agreement be binding on consumers in your market? If so, would U.S. or local laws pertain?
The U.S. license agreement can be applied to consumers in the market. According to Thailand's Intellectual Property law, the terms of uses and conditions specified by manufacturer of that software are applied to the right of use of the purchaser.
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SOFTWARE DELIVERED OVER THE INTERNET/ELECTRONICALLY DELIVERED SOFTWARE

Are taxes applied to software delivered to the end-user over the Internet? If so, on what value?
The same tax rules for physical sales apply to software delivered to the end-user over the Internet. A 7% Value Added Tax is added to the sales price of software sold over the Internet, even when the seller is located outside of Thailand.

Would the situation be different if this software were instead delivered to a distributor who has a license to produce (replicate) and sell the software?
When buying software via the Internet from outside the country, the local distributor is responsible for collecting the 7% VAT and submitting it to the District Revenue office (not the manufacturer). The local distributor is able to reproduce (replicate) the software and sell to purchasers by adding 7% VAT on top of the sales price.

What are the documentation requirements for the electronically delivered import of digitized products (i.e. software, movie downloads) over the Internet or other networks?
Thailand does not have documentation requirements at this time.

Must an electronically delivered software import be accompanied by a physical shipment of the same product?
No, it is not. Software can be downloaded electronically without any physical shipment requirement. Thailand does not have regulations on electronically delivered of software.
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D. IT SERVICES: TAX TREATMENT AND OTHER REGULATIONS

Are services (i.e. training, set-up, etc) relating to the sale of software taxed? If so, at what rate and based on what value?
A 7% Value Added Tax (VAT) applies to the training fees, installation charge and services. Corporate purchasers must deduct 3% withholding tax from that service price and report to the District Revenue office. Individual purchasers are not able to deduct the withholding tax.

Are U.S. IT solution providers permitted to send personnel into the country to set up hardware/software-related systems?
Yes.

Are special visa, work permits, and/or professional certification by an accredited body required?
A non-immigrant visa and work permit are required for long-term contract or specialty/professional workers. The company must process the visa and work permit request at the Royal Thai Embassy or Consulate General Office in the originating country before departure. Required documents and procedures can be found at this web site: http://www.mfa.go.th/web/12.php
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E. REFURBISHED, USED, OR REPAIRED COMPUTER EQUIPMENT IMPORTS

1. REFURBISHED COMPUTER EQUIPMENT
Is the import of refurbished computer hardware, parts, and accessories (including toner cartridges) permitted?
Yes, refurbished (and used) computer hardware, parts and accessories may be imported into Thailand.

If so, what are the documentation requirements?
A commercial invoice showing the product value is required.

Is special labeling required?
No.

What value should be shown on the invoice?
The value of the refurbished or used product. The commercial value of the used/ refurbished products may not be less than 40% of the price of the new product. If it is less, the duties/taxes will be calculated based on 40% of the new product price.

How are duties and taxes assessed?
See above answer.
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2. USED COMPUTER EQUIPMENT
Is the import of used computer hardware, parts, and accessories (including toner cartridges) permitted?
Same as for refurbished computer equipment. See answers above.
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3. REPAIRED COMPUTER EQUIPMENT
Are duties and taxes assessed on the re-import of repaired computer equipment?
No, duties/taxes are not applied to the re-import of repaired computer equipment. However, the product has to be declared to the Customs Department before exportation for repairing.

How should the commercial invoice appear?
The document should state that it is a repaired item.
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RESPONSE INFORMATION

This response was prepared by the U.S. Department of Commerce/Commercial Service in Bangkok, Thailand, in June 2003. For further clarification please contact:
Satit Sanongphan
Commercial Specialist
U.S. Embassy, Thailand
Phone: 66-2205-5090/ Direct: 0-2205-5242
Fax: 66-2255-2915
ssanongp@mail.doc.gov

Or contact:
Customs Information Center
Thai Customs Department
Building 1 Sunthornkosa Rd,
Klongtoey, Bangkok 10110
Tel: +66 2672 8160, 2249 0442
Fax: +66 2249 1279

Special Notes: The above information is intended to serve only as unofficial guidance. In seeking to obtain government rulings in specific cases, it will often be necessary to refer to special laws, separate regulations and announcements, and case-by-case decisions by the government. Beyond the general guidelines shown above, legal counsel should be retained at an early stage of consummation of a major procurement contract, and before entering into any legal commitments.

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