Corporate Income Tax

Corporate Income Tax (CIT)

Thailand corporate income tax is a part of the Thai law that heavily regulates and monitors corporate companies; this is work performed by the Revenue Department. In Thailand, a law under the Revenue Code of Thailand provides for Corporate Income Tax (CIT) to be imposed on both Thai and foreign companies.

Thailand Revenue Code

Should one wish to conduct business in Thailand, they will be governed by the Thai Revenue Code. This is the body of tax law that codifies procedures regarding tax assessment, the collection of revenue taxes, personal and corporate income tax, value-added tax and tax liability, specific business tax, and stamp duty.

Corporate Tax and Juslaws & Consult

The Juslaws & Consult corporate tax department can advise your company on how to comply with the tax regulation that exists.  If you have established a business in Thailand, you have to note how a Thai company is defined. A Thai company is defined as one that has been incorporated under the laws of Thailand. A Foreign company has been incorporated under foreign law but conducts business in Thailand.  When a Foreign company does not conduct business in Thailand but derives income from Thailand, it is also subject to Corporate Income Tax (CIT) under the Revenue Code.

Example of Taxable Income Included on the Corporate Income Tax (CIT)

  1. dividends
  2. interest
  3. professional fees
  4. rents
  5. service fees

Corporate Income Tax on these types of income is based on gross income, where net profit is taken into account to allow companies established under Thai law to be subject to Corporate Income Tax on their net profits from worldwide sources. The net profits of Thai-sourced income of foreign companies are also subject to CIT.

Taxable Person

According to the Revenue Department of Thailand, the following are the taxable persons who may be charged to pay the CIT:

1.1 A company or a juristic partnership incorporated under Thai law.

1.2 A company or a juristic partnership incorporated under foreign law

1.2.1 A company or juristic partnership incorporated under foreign laws and carrying on business in Thailand.

1.2.2 A company or juristic partnership incorporated under foreign laws and carrying on business in other places, including Thailand.

1.2.3 A company or juristic partnership incorporated under foreign laws and carrying on business in other places, including Thailand, in case of carriage of goods or carriage of passengers

1.2.4 A company or juristic partnership incorporated under foreign laws has an employee, an agent, or a go-between for carrying on business in Thailand and, as a result, receives income or profits in Thailand.

1.2.5 A company or juristic partnership incorporated under foreign laws and not carrying on business in Thailand but receiving assessable income under Section 40 (2)(3)(4)(5) or (6) which is paid from or in Thailand.

1.3 A business operating in a commercial or profitable manner by a foreign government, organization of a foreign government, or any other juristic person established under a foreign law.

1.4 Joint venture

1.5 A foundation or association carrying on revenue-generating business, but does not include the foundation or association as prescribed by the Minister in accordance with Section 47 (7) (b) under Revenue Code.

Accounting period

An accounting period exists as an amount of time that is established that allows for the operations of accounting to be completed and assessed. In addition, the accounting period helps with investment processes as it allows prospective shareholders to investigate a company's performance before any further investment.

An accounting period shall be twelve months, including a calendar or fiscal year, except in the following cases where it may be less than twelve months:

Newly incorporated company or juristic partnership

This structure may elect to use the period from its incorporation date as the first accounting period to anyone. A company or juristic partnership may file a request to the Director-General to change the last day of an accounting period.

Any day in the accounting period and income from several sources can be subject to tax. For instance, the sale of goods not exceeding THB 30 million are subject to their own Thailand corporate tax rate:

Corporate Income Tax Rate

According to the revenue department, the corporate Income Tax rate is typically 20 percent, although reduced tax rates and exemptions apply, depending on various factors. These factors include the type of business, the amount of registered capital, tax holiday availability, whether the company is listed on the Stock Exchange of Thailand, and if it is a regional operating headquarters.  The Thai Law requires two corporate tax returns to be filed each year. A company faces penalties for filing a late return, failing to file a tax return, or filing a return that contains false or inadequate information.


Corporate Income Tax

Juslaws & Consults' lawyers have extensive knowledge of Corporate Income Tax Laws in Thailand and experience providing tax planning advice and services to businesses in Thailand. We have a dedicated team of professionals who can assist you with either filing or providing consultation on how you can manage your CIT or even Personal Income Tax (PIT).

The services of Juslaws & Consult are not limited to the Corporate Income Tax (CIT) service. We offer many other legal services, including accounting and taxation services. If you require additional information on any of our Taxation services, please do not hesitate to contact us.