So What You have a Tax Expert by Your Side? You Must Know Everything about Corporate Tax in Thailand…

Sure, you always find a tax expert to assist you. But depending on anyone blindly may not be a wise thing to do for your business. You must be equally aware of the corporate taxes in Thailand.

Such tax is charged on the net profit of the companies, joint ventures and juristic partnerships and branches of the foreign companies at a normal rate (30%), other than those companies that are engaged in petroleum exploration production. In that case, the rate is 50%.

Besides, a reduced rate of 25% is given to the companies that are listed on the SET and 20% to companies that are listed on the MAI. Basically, these rates are applicable for 3 accounting periods. Moreover, companies having a paid-up capital of not more than 5 million Baht at the end of the accounting period are also allowed the reduced corporate income tax.

In addition, a company or a registered partnership or a juristic person, paying income to another Thai registered company, or other juristic person or any foreign company conducting business in Thailand should withhold tax from the payments of the below mentioned types of income;

• 3% of royalties for using intangible assets like copyrights, patents, and other rights;
• 10% on a share of profits and dividends of a registered partnership;
• 3% of professional income;
• 2% of advertising fees under assessable income;
• 1% of transportation fees,
• 1% of non-life premiums, etc.,

While filing CIT in Thailand you must see that the return is followed by the audited financial statement and 50% of your estimated income is paid by the end of the eighth month. Please note, 20% of the deficit would be fined in case you fail to pay the tax on-time.

You must file tax complying with the Form CIT 50 within 150 days from the last date of the accounting period. The company subjected to Corporate Income Tax must repay tax (Form CIT 51). However, a foreign company, which is not operating any business in the country, is subjected to file a flat tax rate. You, being the payer, should withhold tax at source when making the payment.