Corporate Income Tax in Thailand - Mazars - Thailand

Corporate income tax is paid by limited companies and partnerships conducting business in Thailand or deriving income from activities in Thailand.

Notes:

(*) Permanent Establishment includes an office, branch or any other place of business in Thailand or has an employee, agent, representative or go-between for carrying on business in Thailand.

(**) Collected through withholding tax deductions when the income is paid although certain types of income will be exempted under Double Taxation Agreements.

Tax calculation

The taxable profit is derived from the sum of all revenue less allowable expenditure in the accounting period. The following expenses are allowable:

• Ordinary and necessary expenses;
• Interest expense;
• Donations of up to 2% of net profits;
• Entertainment expenses up to 0.3% of gross receipts but not exceeding 10 million baht; and
• Depreciation (specific depreciation rates and initial allowances apply).

As a general rule, the Revenue Department (Section 65 Ter) does not allow the following as an allowable expense:

• Expenses without sufficient supporting documentation (Revenue Department has specific requirements);
• Expenses where the recipient cannot be identified;
• Fines;
• Reserves (specific exceptions do exist);
• Expenditure incurred relating to a prior period which had not been accrued as at the end of that period; and
• Withholding tax paid absorbed on behalf of the supplier.

Specific rules apply to the tax on dividend income.

Losses carried forward from the last five accounting periods are offset against the taxable profit.

Rates

Some relevant corporate income tax rates:

Note:

(*) Specific conditions apply

Forms and submission

For limited companies and partnerships carrying on business in Thailand, forms and submission requirements are:

Late submission

The fine for late submission of the annual or half year tax return is 2,000 Baht. There is also a surcharge of 1.5 percent of the tax payable per month for late submission of the annual tax return. Underpayment of half year tax can result in a surcharge of 20 percent of the tax that should have been paid.