What is the Corporate Income Tax Rate in Thailand?
Thailand offers competitive corporate income tax (CIT) rates, making it an attractive destination for both local and foreign businesses looking to establish operations in Southeast Asia. Understanding the applicable tax rates is essential for proper financial planning and compliance.
Standard Corporate Income Tax Rate
The standard corporate income tax (CIT) rate in Thailand is 20% of the company’s net profit.
This rate applies to most types of companies registered in Thailand, including private limited companies and public limited companies.
Reduced Corporate Income Tax Rates for Small and Medium Enterprises (SMEs)
Thailand offers reduced tax rates for qualified Small and Medium Enterprises (SMEs) to promote entrepreneurship and small business growth.
To qualify, companies must:
- Be incorporated under Thai law.
- Have paid-up capital of 5 million THB or less at the end of the accounting period.
- Have annual revenue not exceeding 30 million THB.
SME Tax Rates (Effective 2024):
| Net Profit (Annual) | Tax Rate |
|---|---|
| First 300,000 THB | 0% (Tax Exempt) |
| From 300,001 THB to 3,000,000 THB | 15% |
| Over 3,000,000 THB | 20% |
Corporate Tax for Foreign Companies (Branch Offices)
- Foreign companies operating in Thailand through branch offices are subject to 20% corporate income tax on income derived from Thailand.
- Representative offices, which do not generate income, are not subject to corporate tax, but must comply with reporting obligations.
Corporate Income Tax Incentives
Companies that are promoted by the Board of Investment (BOI) or operate in special economic zones (SEZ) may receive full or partial exemptions on corporate income tax for a specified period (e.g., 3-8 years), depending on the business activity and investment size.
Summary of Corporate Income Tax Rates in Thailand:
| Company Type | Tax Rate | Remarks |
|---|---|---|
| Standard Companies | 20% | Net profit basis |
| SMEs (Profit ≤ 300,000 THB) | 0% | Tax exemption on first portion |
| SMEs (300,001 to 3,000,000 THB profit) | 15% | Reduced rate for medium profits |
| SMEs (Profit over 3,000,000 THB) | 20% | Standard rate applies |
| BOI-Promoted Companies | 0% – 20% | Depends on promotion privileges |
| Branch Offices of Foreign Companies | 20% | On income derived from Thailand |
How BRW Can Help You Understand and Manage Corporate Tax in Thailand:
At BRW – Boonrawee Co., Ltd., we provide professional tax advisory services to help businesses:
- Plan and optimize tax strategies.
- Ensure full compliance with Thai tax regulations.
- Access tax incentives under BOI and other schemes.
- Handle corporate tax filings and reporting professionally and on time.
Contact us today to learn how to manage your corporate taxes efficiently and legally in Thailand!
