CORPORATE INCOME TAX IN THAILAND
Corporate Income Tax is tax due by Partnerships and Limited Companies carrying on business on the Thai territory or generating incomes from activities performed in Thailand.
Organizations liable to Thailand Corporate Income Tax appear hereinafter: Thai partnership or limited companies incorporated under Thai laws. Foreign Companies which: Are deemed to carry on business on the Thai territory; Carry on business in Thailand; Do not carry on business on the Thai territory but generating certain types of income from Thailand such as dividends, rents, service fees, interests or professional fees. Taxable profits are based on the sum of all revenues less deductible expenses during the fiscal year:
Deductible Expenses:
Ordinary and necessary expenses with special the rates appearing hereinafter:
1. Deduction of 200% on equipment invested for the disabled.
2. Deduction of 200% on Research and Development costs.
3. Deduction of 200% on training costs.
✓ Interests, excluding interests on capital reserves or funds of the company. Taxes except for VAT and CIT.
✓ Net losses carried forward (5 years).
✓ Wear and tear.
✓ Donations: no more than 2% of net profits.
✓ Bad Debts only if a procedure has been launched to the court of Thailand.
✓ Provident fund contributions.
✓ Entertainment costs up to 0.3% of gross incomes and not exceeding THB 10M.
✓ Annual Asset Depreciation according to authorized rates
Non-deductible expenses:
✓ Expenses which supporting documentation is not sufficient (agreements and any other serious proofs justifying the expense);
✓ Expenses which recipient is not identifiable (no company name, no address);
✓ Allocations to reserves;
✓ Fines & penalties;
✓ Expenditure incurred relating to a prior period which had not been accrued as at the end of that period;
✓ Withholding taxes paid on behalf of service providers or landlord.
TAX PAYER
TAX BASE
RATE
1. Companies not appearing below
Fiscal Profit
20%
2. Small companies with a paid-up capital not exceeding THB 5M Baht and income less than THB 30M
Fiscal profit not exceeding 0.15m Baht
Exempt
Fiscal profit over THB 0.15M and less than THB 1M
15%
Fiscal profit more than THB 1M and less than THB 3M
20%
Fiscal profit more than THB 3M
20%
3. Foreign companies not leading activities in Thailand but receiving dividends
Gross dividends
10%
4. Foreign companies not leading activities in Thailand and receiving incomes other than dividends
Gross receipts
15%
5. Foreign company remitting profit out of Thailand
Amount remitted
10%
6. Regional Operating Headquarters (ROH)
Net profit
10%
7. BOI Licensed companies
Net profit
0%
Forms and submission
For limited companies and partnerships carrying on business in Thailand, forms and submission requirements are:
FORM
SUBMISSION DATE
WITHIN 7 DAYS
AFTER 7 DAYS
PND50
Annual tax return
Within 150 days from the last day of the accounting period
e.g. for year ended 31 December 2016 submit on or before 30 May 2017
2,000 baht
4,000 baht
PND51
Half year tax return
Within 2 months from the last day of the first 6 months of the accounting period
e.g. for year ending 31 December 2017 submit on or before 31 August 2017
1,000 baht
2,000 baht
Half-year tax is a prepayment calculated from the tax payable on the forecast net profit for the year. The prepaid tax is creditable against the full year tax liability.
The Revenue Department has announced that companies registered for e-filing have an extra eight days to file the CIT returns after the regular deadline. This incentive will run until 31 January 2019.
Surcharge for late submission
There is also a surcharge of 1.5 percent of the tax payable per month for the late submission of the annual tax return.
Underpayment of half-year tax can result in a surcharge of 20 percent of the tax that has been underpaid.
Further sources of information
Please visit the Revenue Department website.
