Business Tax

G.A.M. Legal Alliance > Services > Business Support > Accounting Service in Thailand > Business Tax

Business tax in Thailand is explained as follows. For instance the corporate income tax in Thailand is normally levied on both Thai and foreign companies operating in Thailand. In addition 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). In conclusion the definition of a foreign company in Thailand means a company that has been incorporated under foreign law. In addition, see also our accounting service in Thailand for more information.

Business Tax

Firstly 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.
 

Business Tax

 
Firstly, 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. Always ask for advice on corporate income tax in Thailand.
 

Corporate Income Tax Rates

– Net profit not exceeding 1 million baht 15%

– Also the Net profit over 1 million baht but not exceeding 3 million baht 25%

– Net profit exceeding 3 million baht 30%

Thailand’s corporate income tax rate was 30% in the past, but it was reduced to 20% as part of tax reforms to attract investment and remain competitive in the region.

  • Before 2012: the standard CIT rate was 30%.

  • 2012–2013: reduced to 23%.

  • 2013 onward: set at 20%, which is still the current rate.

So today, the standard Corporate Income Tax in Thailand is 20%, not 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 for assistance.

Thailand levies Value Added Tax (VAT) on the sale of goods and services, as well as on imports. The standard VAT rate is 7%, which applies to most transactions. Businesses with annual turnover exceeding 1.8 million baht must register for VAT, file monthly returns, and remit the tax collected. Zero-rated VAT applies to exports.

 

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.

Finally see also the other service that we offer such as Accounting Reports & English Translations as well as the bookkeeping services in Thailand for your small business.

 

 

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