On 04 March 2016, Thailand Revenue Code Amendment Act (No 42) was gazetted amending the prescribed rate of income tax for corporate entities in Thailand.
This Insight has been updated for the corporate tax rates amended by RCAA (No 42).
Corporate Entities Established under Thai Law
For corporate entities established under Thai law:
- On the total amount of net profit
20%*
For corporate entities established under Thai law and meeting the conditions for an SME entity (1):
- On the amt of net profit up to 300,000 Bt
Exemption from tax
- On the amt of net profit frm 300,000-3,000,000 Bt
15%
- On the amt of net profit over 3,000,000 Bt
20%
(1) A corporate entity established under Thai law with paid up capital at the end of its financial year not exceeding 5 million Baht and income for its financial year not exceeding 30 million Baht.
Corporate Entities Established Under a Foreign Law
For corporate entities established under a foreign law and carrying on business in Thailand:
- On the total amount of net profit
20%*
For corporate entities established under a foreign law and not carrying on business in Thailand:
- On the amount of gross income earned
15% withholding tax
* As amended by Revenue Code Amendment Act (No 42) gazetted on 4 March 2016.
Our Tax Insights and Updates are general information publications focusing on the laws for meeting tax compliance obligations, and tax rights and entitlements under the laws.