Thailand SME Corporate Tax Rates
Update | April 2016
On 18 Apr 2016, Royal Decree (No 603) was gazetted, putting into effect the Government's resolution to further reduce the corporate tax rates for SMEs for their 2015 and 2016 years. This Tax Law Guide has been updated to reflect the tax rate change under RD (No 603).
A Small and Medium Enterprise (SME) as a Thailand registered corporate entity having:
Irrespective of a Thailand company's capital being held by foreigners, if the company meets the above two conditions, it is entitled to the reduced corporate income tax rates for SMEs under the tax code, as follows:
(1) As prescribed in Royal Decree (No 603) issued on 18 April 2016.
(2) As prescribed in Royal Decree (No 564) issued on 29 April 2013.
Whilst it is the intention of the Government to giveth an SME an exemption from corporate income tax on the first 300,000 Baht of net profit, if an SME's net profit is less than 300,000 Baht and therefore exempt from tax, and that SME claims a refund of excess withholding tax credits, that SME can expect the Revenue Department's tax audit officers to seek to taketh the tax exemption by adjusting the SME's net profit so that there is tax payable by the SME.
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.