Corporate Income Tax Rate Reduction

The corporate income tax rate reductions have been passed into law and come into immediate effect for accounting periods commencing on or after 1 January 2012.

Keywords: Corporate Income Tax, SMEs, Revenue Department, Thailand

The rates for companies and juristic partnerships are now effective:

  • 23% for one accounting period commencing on or after 1 January 2012
  • 20%  for two accounting periods commencing on or after 1 January 2013

For Small and Medium Enterprises (SMEs) and companies listed on the MAI, the tax rate shall be as follows:

Tax payer Net taxable Income (Baht) Tax rate Effective Date
SMEs* Not exceeding 150,000 Exempted Accounting period commencing on or after
 1 January 2012
  150,000-1,000,000 15% Accounting period commencing on or after
 1 January 2012
Over 1,000,000 23% Accounting period commencing on or after
 1 January 2012
Over 1,000,000 20% Accounting periods commencing on or after
 1 January 2013
Company listed on the MAI Not exceeding 50,000,000 25% Accounting periods commencing on or after
 1 January 2011
(Excluding the company entitled to tax at 20%) All income 23% Accounting period commencing on or after
 1 January 2012
All income 20% Two accounting periods commencing on or after 1 January 2013

SMEs* are registered companies or partnerships which have:

  • paid-up capital as at the end of accounting period of not more than Baht 5 million; and
  • total revenue from sales of goods and rendering of services of not more than Baht 30 million.

Revenue Department announcements:

http://www.rd.go.th/publish/28267.0.html

http://www.rd.go.th/publish/28266.0.html

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