Keywords: Tax, Thailand, Corporate Income Tax, Tax Reduction
Corporate income tax rates will be reduced from 30% to:
- 23% for accounting periods commencing on or after 1 January 2012; and
- 20% for accounting periods commencing on or after 1 January 2013.
For companies listed on the Stock Exchange of Thailand (‘SET’), the income tax rate will be reduced from 25% to 23% and 20% respectively for the prescribed periods outlined above. For Small and Medium Enterprises (‘SMEs’) and companies listed on the Market for Alternative Investment (‘MAI’), the tax rate shall be as follows:
SME* is a company or partnership which has:
- paid-up capital at the end of accounting period of not more than Baht 5 million; and
- total revenue from sales of goods and rendering of services is not more than Baht 30 million.
The proposed tax reduction was already subject to much discussion within the business community. However, as a result of the recent severe flooding, the Thai government’s budget will be considerably stretched to fund flood recovery programs. As a result it is expected that the reduction may be shelved or delayed until a more appropriate time.