Business Tax

The corporate income tax in Thailand is normally levied on both Thai and foreign companies operating in Thailand. The definition of a Thai company means any company incorporated under the law of Thailand. Note that the Thai company is not only subject to tax in Thailand but also on its worldwide net profit at the end of each financial year  (12 months). The definition of a foreign company in Thailand means a company which has been incorporated under foreign law.
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This generally means that a foreign company is treated as carrying on business in Thailand if the foreign company has a branch or office or any other place of business in Thailand or has an employee, agent, representative or go-between for carrying on business in Thailand. Note that any foreign company which is carrying on business in Thailand is subject to CIT only for net profit arising from or in consequence of business carried on in Thailand, at the end of each accounting period.

Corporate Income Tax Rates
  • – Net profit not exceeding 1 million baht 15%
  • – Net profit over 1 million baht but not exceeding 3 million baht 25%
  • – Net profit exceeding 3 million baht 30%

Thailand has also concluded a number of double tax agreement (DTA) with at least 52 countries as of May 2006. Speak to our tax specialist for more information. The basic premises of DAT are as follows:

Double Tax Agreement
(1) Persons Covered

Any persons who are residents of the contracting states are entitled to the DTA. In Thailand, to be classified as a Thai resident, one must be either:

  • – A person staying in Thailand for a period exceeding the aggregate 180 days in a tax year;
  • – A juristic person who is incorporated under the Civil and Commercial Code of Thailand.
(2) Taxes Covered

DTA only applies to income taxes, namely personal income tax, corporate income tax and petroleum income tax. Indirect taxes such as value added tax and specific business tax are not covered by the DTA.

 


Thailand VAT Registration

See the page on Value Added Taxes in Thailand on this website for more details. You can also speak to us online or better yet send us an email so we may provide you with a full answer to your issue. If you are in Thailand you can walk into our offices in Bangkok and Phuket for assistance.


Value Added Tax

Value Added Tax (VAT) was implemented in Thailand in 1992 to replace Business Tax. VAT is an indirect tax imposed on the value added of each stage of production and distribution.