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).
| Taxpayer | Tax Base | Rate (%) |
| 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 profit | 20% |
| 3. Listed Company in Market for Alternative Investment (MAI) | Net profit | 20% |
| 4. Bank deriving profits from International Banking Facilities (IBF) | Net profit | 10% |
| 5. International Business Center 1 | Net profit | 3%, 5%, 8% 2 |
| 6. Foreign company engaging in international transportation | Gross receipts | 3% |
| 7. Foreign company not carrying on business in Thailand receiving dividends from Thailand | Gross receipts | 10% |
| 8. Foreign company not carrying on business in Thailand receiving other types of income apart from dividend from Thailand | Gross receipts | 15% |
| 9. Foreign company remitting profit out of Thailand | Amount remitted | 10% |
| 10. Profitable association and foundation | Gross receipts | 2%, 10% 3 |
Notes:
- 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 - Specific conditions apply
- 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
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.
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