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:
- Ordinary and necessary expenses with special the rates appearing hereinafter:
- Deduction of 200% on equipment invested for the disabled.
- Deduction of 200% on Research and Development costs.
- Deduction of 200% on training costs.
- Interests, excluding interests on capital reserves or funds of the company.
- Taxes except 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 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%|