Is head office expense deductible in calculating net profit/loss?
Head office and its branch are considered one juristic person. The expenses which are allocated from head office to branch in Thailand are prohibited expense items or non-deductible expense. However, the expenses may be allowable if they can be proved to the Revenue Department that they are made for the purpose of supporting services or R&D directly and exclusively benefited to the business in Thailand. The Revenue Department may require supporting documents/evidences to consider whether expense items and price are acceptable.