Tax Clearance Certificate is a certificate issued by the Director-General of the Revenue Department or the Provincial Governor or the delegated authority to a foreigner who is departing Thailand to indicate that he has already paid taxes or that he has provided a guarantor or securities as guarantee for tax liabilities and tax payable.
Section 4 quarter of the Revenue Code stipulates that a foreigner departing shall apply for a Tax Clearance Certificate in the form prescribed by the Director-General within 15 days before leaving the country, whether or not there is any tax payable. A foreigner departing Thailand is required to file an application for Tax Clearance Certificate (Form P.1) and supporting documents if:
He is liable to payment of tax or tax arrears before departing Thailand
He has duty to file a tax return and pay tax on behalf of a company or juristic partnership incorporated under foreign laws and has been carrying on business in Thailand
He has taxable income, whether or not in Thailand, from being a public performer in Thailand.
The word "public performer" means a drama, movie film, radio and television performer, singer, musician, professional sportsperson or performer for any kind of entertainment.
Section 4 quarter of the Revenue Code stipulates that a foreigner transiting Thailand, or entering or residing in Thailand for a period or periods aggregating not more than 90 days in a tax year without earning assessable income or a foreigner as prescribed by the Director-General with the Ministers approval shall not be required to apply for a Tax Clearance Certificate.
In addition the Revenue Department issued the Notification of the Director-General of the Revenue Department on 7 May 1991 stipulating that foreigners departing Thailand do not have to apply for a Tax Clearance Certificate except for the above three cases in 2.
There are 2 types of Tax Clearance Certificate: P.3 and P. 3.1
4.1 P.3 Tax Clearance Certificate
issued to a foreigner who is temporarily departing Thailand. It is valid for a single leave and must be used within 15 days from the issuance date. If he does not depart Thailand within the specified period, the Tax Clearance Certificate becomes invalid unless it is renewed before the expiry date.
4.2 P.3.1 Tax Clearance Certificate
issued to a foreigner who enters and leaves Thailand on a regular basis due to his business or profession. It is valid for multiple leave within the period specified in the Tax Clearance Certificate but not exceeding 180 days from the issuance date. Renewal of Form P. 3.1 is not allowed.
A foreigner required to have a Tax Clearance Certificate shall file an application for Tax Clearance Certificate (Form P.1) along with the following documents:
Tax Clearance Certificate Form P. 3
Tax Clearance Certificate Form P. 3.1
If the applicant for Tax Clearance Certificate makes no payment or has made a partial payment for his tax liabilities or payable after the departure date, he is required to provide a guarantor or guarantee to the Director-General of the Revenue Department or the provincial governor or the delegated authority.
If the Tax Clearance Certificate is lost, the foreigner is required to contact the office where the application was filed for a replacement. The new Tax Clearance Certificate only remains valid until the expiry date of the former Tax Clearance Certificate.
A foreigner departing Thailand is required to present the Tax Clearance Certificate to the Immigration Office on the departure date.
A foreigner departing or attempting to depart Thailand without a Tax Clearance Certificate shall pay a surcharge at the rate of 20% of the tax amount. In addition he shall be subject to a fine not exceeding 1,000 Baht or an imprisonment not more than 1 month, or both.
If there is any question regarding the Tax Clearance Certificate, please contact any Area Revenue Office with jurisdiction over the area of residence of the foreigner.