income tax thailand

Corporate Income Tax in Thailand in 2021 : the complete recap

The standard rate for corporate income tax in Thailand is 20%. However, this rate varies based on the type of taxpayer.

A reduced Tax Rate for SMEs and Companies promoted by the BOI

 Small companies benefit from tax exemption up to 300,000 Baht (USD 9,620) while companies promoted by the Board of Investment (BOI) may be granted corporate tax exemptions up to 11 years depending on their business activities and their location (Thailand has implemented clusters).

The main activities promoted by the BOI are (1) Agriculture and agricultural products, (2) Mining and ceramics and basic metals, (3) Light industry, (4) Metal products, machinery and transport equipment, and (5) Technology and innovation development).

TaxpayerTax BaseRate (%)
1. Small company (paid-in capital not exceeding 5 million baht at the end of each accounting period and income from the sale of goods and/or the provision of services not exceeding 30 million bath)Net profit 

not exceeding 300,000 baht

Exempt
Net profit 

from 300,000 not exceeding 3 million baht

15%
Net profit 

over 3 million baht

20%
2. Listed Company on The Stock Exchange of Thailand (SET)Net profit20%
3. Listed Company in Market for Alternative Investment (MAI)Net profit20%
4. Bank deriving profits from International Banking Facilities (IBF)Net profit10%
5. International Business Center 1Net profit3%, 5%, 8% 2
6. Foreign company engaging in international transportationGross receipts3%
7. Foreign company not carrying on business in Thailand receiving dividends from ThailandGross receipts10%
8. Foreign company not carrying on business in Thailand receiving other types of income apart from dividend from ThailandGross receipts15%
9. Foreign company remitting profit out of ThailandAmount remitted10%
10. Profitable association and foundationGross receipts2%, 10% 3

Notes:

  1. Depending on types of income
    (1.1) 2% when income from business, commerce, agriculture, industry, transport or any other activity not specified earlier
    (1.2) 10% other types of income apart from above
  2. Specific conditions apply
  3. Depending on annual operating expenses locally paid, as follows.
    (3.1) 3% when annual operating expenditure is between 60 – 300 million baht
    (3.2) 5% when annual operating expenditure is between 300 – 600 million baht
    (3.3) 8% when annual operating expenditure is 600 million baht or more

 

tax thailand

Corporate Income Tax Filing

An annual corporate income tax return (PND.50) must be filed within 150 days from the last day of the accounting period. An Half year corporate income tax return (PND.51) must be filed within 2 months from the last day of the first 6 months of the accounting period. The half year tax is a prepayment calculated from tax liability on an estimation of its net profit for the year. The prepaid tax is creditable against the full year tax liability.

If the taxpayer fails to file a tax return or late submission, it may result in penalties and surcharges.

If you require any support with this topic or any other business operations, please do not hesitate to contact us.

 

 

 

 

 

—-

ABOUT US :
MyBusiness Asia is a provider of corporate and accounting services in Singapore, Hong Kong and other Asian countries. MyBusiness Asia is a brand of RBA and Rosemont group. We offer a full range of corporate services. We aim to provide entrepreneurs with quality services at an attractive cost, through a digitalized platform. STARTING: MyBusiness Asia can help you to start your business in Asia step by step. RUNNING: We provide high quality services for a successful business. STRUCTURING: We help you structure your company for success and growth. We register and service companies in Singapore and Hong Kong. Secretary, Accounting, Taxation, HR & Payroll are all done remotely. We aim to provide entrepreneurs with quality services and attractive cost, through a digitalized platform. Our incorporation and running processes are 100% digital • 100% paperless company registration • Fast and efficient customer service • All-inclusive compliance & accounting packages available. We register and service companies in Singapore and Hong Kong. Secretary, Accounting, Taxation, HR & Payroll are all done remotely. We are a brand of RBA and part of Rosemont International Group.