Corporate Income TaxCorporate taxes in Thailand is must be paid if you are a Limited company, public company limited, limited partnership and also a registered partnership. This also includes joint ventures or foreign registered companies.

Tax Returns & Payment

Both Thai and foreign business in Thailand are required to file not only their tax returns within 150 days from the end of their financial periods but tax payments must also be submitted with the tax returns.

Note that a company also has to pay its taxes twice a year based on an estimate of its annual net profit as well as its tax liability. Half of this has to be paid within 2 months during the first 6 months of the financial period.

Corporate Income TaxAccounting Period

The accounting period is for 12 months from when the business started doing business. The first year is normally shorter than 12 months as the accounting period will be calculated from the time of company registration and not from when business started. You may contact the Revenue Department to change the date. You will need to speak to an auditor or accountant to do this for you.

Tax Calculations

Company taxes in Thailand is based on the net profit of the company however you can also claim deductions for doing business. These deductions in Thailand are as follows but speak to an accountant for detailed list of deductible expenses.

  • – 200% deduction of Research and Development expenses of the business;
  • – 200% deduction of job training expense of your staff in Thailand;
  • – 200% deduction of expenditure on the provision of equipment for the disabled;
  • – Interest, except interest on capital reserves or funds of the company;
  • – Taxes, except for Corporate Income Tax and Value Added Tax paid to the Thai government;
  • –¬†Net losses carried forward from the last five accounting periods;
  • – Bad debts which you have written off;
  • – Wear and tear on your equipment;
  • – Donations of up to 2% of net profits;
  • – Provident fund contributions for staff;
  • –¬†Entertainment expenses up to 0.3% of gross receipt but not exceeding 10 million baht;

Tax Rates

The corporate tax rates in Thailand is 20 % on net profit (accounting periods 2013-2014) . However, the rates vary depending on types of taxpayers.

TaxpayerTax BaseRate (%)
Small companyNet profit <1 million baht15%
Net profit >1 million baht20%
Companies listed on (SET)Net profit20%
Companies newly listed on (SET)Net Profit20%
Company newly listed on (MAI)Net Profit20%
Bank deriving profits from (IBF)Net Profit10%
Foreign company engaging in international transportationGross receipts3%
Foreign company not carrying on business in Thailand receiving dividends from ThailandGross receipts10%
Foreign company not carrying on business in Thailand receiving other types of income apart from dividend from ThailandGross receipts15%
Foreign company disposing profit out of Thailand.Amount disposed10%
Profitable association and foundation.Gross receipts2% or 10%

If you need more advice on tax in Thailand then speak to us online or send us an email for more assistance and advice. You can also call us or walk into our offices in Phuket or in Bangkok for more tax advice and assistance in Thailand.