Corporate tax rates in Thailand
Thai companies pay corporate income tax on net profits, with standard rates and special regimes for BOI, ROH, and small business. At Thai Visa Centre in Bangkok, we focus on immigration compliance. This guide outlines CIT basics so founders can coordinate with accountants from day one.
Corporate tax and personal income tax are separate. Directors on payroll owe personal tax even when the company qualifies for BOI holidays. Filing detail: corporate tax in Thailand guide.
Corporate income tax on net taxable profit for most companies.
Standard rate on taxable supplies when VAT registered.
Due within 150 days of accounting period end.
Common CIT exemption period for promoted activities.
Standard corporate income tax rate
The headline CIT rate is 20% on net taxable profit for most companies.
| Taxpayer type | Rate (general) |
|---|---|
| Standard company | 20% on net profit |
| SME reduced rates | Progressive rates on first portions of profit for qualifying small companies |
| BOI-promoted company | Exemption or reduction per approval letter |
| ROH qualifying income | Reduced rate on eligible service fees (e.g. 10% historically) |
SME progressive rates
Qualifying small and medium enterprises may pay reduced CIT on portions of net profit. Thresholds and rates change with annual Revenue Department announcements. Typical structure has applied lower rates to first 300,000 THB and next profit bands before 20% on remainder.
Confirm current SME definition (paid-up capital, income limits) with your accountant.
BOI tax holidays
BOI promotion may grant the following tax benefits for promoted activities:
- CIT exemption for 3-8 years commonly
- Additional 50% reduction for further years in some packages
- Zone-based enhancements outside Bangkok
- Benefits apply only to promoted activities with compliance reporting
Non-promoted income is taxed at standard rates. Benefits require ongoing BOI compliance reporting.
Other corporate taxes to budget
| Tax | Overview |
|---|---|
| VAT | 7% standard rate on taxable supplies if registered |
| Withholding tax (WHT) | On dividends, service fees, royalties. Payer withholds at source. |
| Specific business tax | Certain financial and property transactions |
| Stamp duty | Contracts and official documents |
Accounting support: Thailand accounting guide.
Tax year and filing
| Obligation | Detail |
|---|---|
| Accounting period | Usually 12 months; first period may differ after incorporation |
| Mid-year prepayment (PND.51) | Estimated tax instalments during the year |
| Annual return (PND.50) | Within 150 days of accounting period end |
| Audited financial statements | Required for most companies above size thresholds |
Immigration note: CIT compliance does not replace visa or work-permit obligations. Tax ID registration: tax identification number guide.
Foreign-owned company considerations
| Topic | Detail |
|---|---|
| Transfer pricing | Related-party transactions must be at arm length |
| Permanent establishment | Foreign parents with branch or ROH Thai presence |
| Dividend WHT | 10% to individuals; rates vary with tax treaties |
| Thin capitalisation | Interest deduction limits on related-party loans |
Offshore structure planning: Thailand offshore structure guide.
Frequently asked questions
General answers about Thai corporate tax rates. Confirm current rates and filing rules with the Revenue Department and your accountant.
Q:When does a new company start paying CIT?
A:From the first accounting period with taxable profit. Prepayment rules may apply even if profit is expected.
Q:Can BOI and SME benefits combine?
A:Generally BOI holiday overrides standard SME rates on promoted income. Confirm with Revenue Department interpretation.
Q:Are foreign branch profits taxed?
A:Thailand-source income of branches is subject to CIT. Remittance may trigger additional withholding tax.
Q:Do dormant companies file?
A:Yes. Zero-return or minimal filings may still be required to maintain good standing.
Q:What is the standard corporate income tax rate?
A:The headline CIT rate is 20% on net taxable profit for most companies.
Q:Does corporate tax replace visa obligations?
A:No. CIT compliance does not replace visa or work-permit obligations. Directors on payroll owe personal tax separately.
Q:What SME rates apply?
A:Qualifying SMEs may pay reduced CIT on portions of net profit. Thresholds and rates change with annual Revenue Department announcements.
Q:What happens if I file late?
A:Late filing triggers penalties and interest. Start accounting from day one to avoid surprises.