Tax Exemption for SMEs

To promote SMEs, the Thai government has issued Royal Decree Number 595 which benefits SMEs in term of corporate income tax. We set below a summary of this law.

Keywords: Mazars, Thailand, Tax, SMEs, Royal Decree Number 595, Revenue Department

26 January 2016

1. The entities which are entitled to the benefits under this law are companies which include legal partnerships: (1) established prior to 1 January 2016; (2) whose paid-up capital at the end of the accounting period does not exceed 5 million baht; and (3) whose revenue from the sale of goods or the provision of services in the accounting period does not exceed 30 million baht.

2. The benefits under this law are as follows:

  • For the accounting period beginning in 2016, the SME is exempt from corporate income tax.
  • For the accounting period beginning in 2017, the first 300,000 baht of net taxable profit will be exempt from corporate income tax, and the SME will be subject to a reduced corporate income tax of 10% on any additional income.

3. To be entitled to the benefits under this law, the taxpayer must:

  • notify the Revenue Department of its eligibility to receive the benefits under the tax amnesty , and such benefits must not have been withdrawn; and
  • not have paid-up capital at the end of the accounting periods exceeding 5 million baht, or revenue from the sale of goods and the provision of services in the accounting periods exceeding 30 million baht.

Want to know more?