Corporate Income Tax

Corporate Income Tax (CIT)

The taxes of the companies in Thailand are heavily regulated and monitored 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, and Juslaws & Consult corporate tax department can advise your company on how to comply.

If you have established a business entity in Thailand then you have to take note that a Thai company is defined as one that has been incorporated under the laws of Thailand. A Foreign company is one that 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. 

Types of 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 the gross amount received. Companies established under Thai law are 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. dividends
  2. interest
  3. professional fees
  4. rents
  5. service fees

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 shall be twelve months except in the following cases where it may be less than twelve months:

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


CIT Rate

The Corporate Income Tax rate is typically 20 percent, although reduced tax rates and exemptions do 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.

Summary

Juslaws & Consults’ lawyers have extensive knowledge of Corporate Income Tax Laws in Thailand and experience in 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).

Our services are not limited to Corporate Income Tax (CIT) service. We have many other accounting and taxation services that we can offer to you. If you require additional information on any of our Taxation services please do not hesitate to contact us.

Our services are not limited to Corporate Income Tax (CIT) service. We have many other accounting and taxation services that we can offer to you. If you require additional information on any of our Taxation services please do not hesitate to contact us.