A juristic company or partnership incorporated under Thai law such as limited company, public company limited, limited partnership and registered partnership is subject to Corporate Income Tax or CIT in Thailand as well as a company or juristic partnership incorporated under foreign law carrying business in Thailand.
H&P lawyers have prepared some basic comments for the initial understanding on CIT in Thailand for companies looking to establish business in our country.
Tax filling
Taxable person must file annual corporate income tax within 150 days from the last day of the accounting period. Together with the same fiscal year’s company audited financial statement. In addition, the company must file half-year corporate tax return within 2 months from the last day of the first 6 months of the accounting period. Half-year corporate tax return is the tax payable calculated from estimated net profit for the year. The amount of tax paid will be credited against full year tax liability
Calculation
Corporate Income Tax in Thailand is calculated by net profit of the company in each accounting period deducting expenses as prescribed in Revenue Code such as donations, royalties, ordinary and necessary expenses, provident fund and contributions, entertainment expense and depreciation.
Types of assets for depreciation allowance are as follows:
– Building
– cost of acquisition of depleted natural resources
– cost of acquisition of lease rights
– cost of acquisition of the right in a process, formula, goodwill, trademark, business license, patent, copyright or any other rights
– other depreciation except land and goods. For example, machinery used in R&D
– computer and accessories
Tax rate
Corporate income tax rate is generally at 20 percent. However, small and medium enterprises (SME), a company having paid up capital less than THB 5 million and income not exceeding THB 30 million, are subject to tax rates as follows:
| Net profit (THB) | Tax Rate |
| Not exceeding 300,000 | Exempt |
| 300,001 – 3,000,000 | 15% |
| Over 3,000,000 | 20% |
If you require Tax advice in Thailand, please contact our Tax lawyers in Bangkok at: [email protected]
