Thailand Tax Structures include structures subject to corporate tax, structures subject to reduced corporate tax, and structures not subject to corporate tax:
Structures subject to corporate tax
Company or juristic partnership established under the laws of Thailand;
Company or juristic partnership established under the laws of a foreign country and carrying on business in Thailand (Branch Office Structure);
Profit-seeking enterprise of a foreign government or organization owned by a foreign government or other juristic person established under the laws of a foreign country;
Joint venture; and
Foundation or association engaged in a business or profit-seeking activity.
Structures subject to reduced rates of corporate tax
International Business Center (IBC); and
Small and Medium Enterprise (SME).
Structures not subject to corporate tax at all
Regional Offices for Foreign Corporations;
Regional Offices for Foreign NGOs and NFPs; and
Representative Offices (Rep Offices).
International businesses should note that as Thailand is still 'form over substance' you need to choose your Tax Structure in Thailand, not on the basis of what is the easiest to establish in Thailand, but on the basis of what’s right for your particular business operation. A wrong decision could cause you to pay more tax than what is required, and believe-it-or-not this is actually a surprise that some international businesses still experience in Thailand when the Revenue officers come to inspect their business operations some years after their establishment.
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.