Reminder about filing half-year corporate income tax returns

Keywords: Mazars, Thailand, Tax, PND. 51, Corporate income tax, Ministry of Finance, Stock Exchange of Thailand

3 September 2020

The calculation for half-year tax must be based on net profits, as follows:

• For listed companies, banks, or financial institutions, on the actual net profit for the half-year; and
• For companies other than those listed above, on one-half of the estimated net profit for the entire year.

If a company fails to file a half-year tax return, or underestimates its net profits by more than 25% of the full year’s net profits without a justifiable reason, it shall be liable to a surcharge of 20% of the amount of the tax shortfall.

However, under the Director-General’s Instruction No. Paw. 50/2537, the following cases shall be treated as a justifiable reason:

• if the company files a half-year corporate income tax return where the half-year tax payable (before any tax credit) is at least half of the corporate income tax payable (before any tax credit) in the corporate income tax return filed for the previous year; or
• if the company files a half-year corporate tax return on an estimated amount of net profit that is at least half of its actual net profit according to the corporate income tax return filed for the previous year, but the company has half-year tax payable in the half-year corporate income tax return which is less than half of the corporate income tax payable in the corporate income tax return for the previous year as a result of receiving a tax exemption or reduction.