Corporate Income Tax

Incorporated businesses operating in Thailand pay income tax at a rate 30 percent of net profits, while foundations and associations pay income taxes at a rate of between two to 10 percent of gross business income, depending upon the activity. International transport companies pay a rate of three percent of gross ticket receipts and three percent of gross freight charges.

All companies registered in Thailand are subject to income tax on income earned within and outside of Thailand. Foreign companies not registered or residing in Thailand are subject to tax only on income derived from sources within Thailand.

Thai and foreign companies carrying on business in Thailand are required to file their tax returns (Form CIT 50) within 150 days from the closing date of their accounting periods. Tax payment must be submitted together with the tax returns. Any company disposing funds representing profits out of Thailand is also required to pay tax on the sum so disposed within seven days from the disposal date (Form CIT 54).

In addition to the annual tax payment, any company subject to CIT on net profit is also required to make tax prepayment (Form CIT 51). A company is obliged to estimate its annual net profit as well as its tax liability and pay half of the estimated tax amount within two months after the end of the first six months of its accounting period. The prepaid tax is creditable against its annual tax liability.

As regards to income paid to foreign company not carrying on business in Thailand, the foreign company is subject to tax at a flat rate in which the payer shall withhold tax at source at the time of payment. The payer must file the return (Form CIT 54) and make the payment to the Area Revenue Branch Office within seven days of the following month in which the payment is made.

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