Corporate Income Tax
A. Tax on net corporate profits Rate
(1) Ordinary Company 30%
(2) Small Company (paid up capital <5m baht)
- Net profit not exceeding 1m baht 20%
- Net profit over 1m baht but not >3m baht 25%
- Net profit exceeding 3m baht 30%
(3) Company listed on Stock Exchange of Thailand (SET)
- Net profit for first 300m baht 25%
- Net profit for amount exceeding 3m baht 30%
(4) Company newly listed on SET 25%
(5) Company newly listed on Market for Alternative Investment (MAI) 20%
(6) Bangkok International Banking Facility (BIBF) 10%
(7) Regional Operating Headquarters (ROH) 10%
Note 1: Tax rate for companies in (3) to (5) apply for five consecutive accounting periods
Note 2: Tax rate for companies in (6) to (7) apply for qualifying income.
B. Tax on Gross Receipts
(1) Association and foundation [2% for income under Section 40 (8)] 2% or 10%
(2) Foreign company engaging in international transportation 3%
C. Remittance Tax
Foreign Company disposing profits out of Thailand 10%
D. Foreign company not carrying on business in Thailand receiving income from Thailand
(1) Dividend income 10%
(2) Other types of income apart from dividend 15%
Personal Income Tax (Effective Jan. 1, 2002)
Level of taxable income (baht) Marginal Tax Rate
0 - 80,000 exempt
80,001 - 100,000 5%
100,001 - 500,000 10%
500,001 - 1,000,000 20%
1,000,001 - 4,000,000 30% over 4,000,000 37%
Note: Expatriates working for ROH can elect to be taxed at the rate of 15% for 2 years instead of normal progressive tax rates
Tax on Income from Bank Deposits
A. For individuals 15%
B. For companies 1%
C. For foundations 10%
Value Added Tax
Level of taxable income (baht)
Over 1,200,000 7%
BIBF (Bangkok International Banking Facility)
Corporate Income Tax
Withholding tax on remittance of interest
out-out exempt
out-in* 10-15%
Withholding tax on remittance of profits
out-out exempt
out-in* exempt
Personal Income Tax
Withholding tax on remittance of interest
out-out exempt
out-in* 10-15%
* Rate depends on double Taxation Agreements
Withholding Tax
A foreign company or registered partnership not carrying out business in Thailand receiving the following income from or in Thailand: Rate
A. Remittance of profits 10%
B. Remittance of dividends 10%
C. Remittance of interest 15%
D. Royalties from goodwill, copyright and other rights 15%
E. Rentals from hiring property 15%
Double Taxation Agreements exist with the following:
Armenia, Australia, Austria, Bahrain, Bangladesh, Belgium, Bulgaria, Canada, China, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Indonesia, Israel, Italy, Japan, Korea, Laos, Luxembourg, Malaysia, Mauritius, Nepal, the Netherlands, New Zealand, Norway, Pakistan, the Philippines, Poland, Romania, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, United States, Uzbekistan and Vietnam.
Business Info Thailand
For up to date information and advice on doing business in Thailand we recommend visiting the Thailand Board of Investment website http://www.boi.go.th which gives advice on the typical costs of starting and operating a business, labour costs, tax rates and double taxation agreements, visas, transportation costs- including fuel and freight rates, communication costs, utility costs etc.
There is also a PDF file available which charts some of these costs for you and is available from the TBI website or by clicking on the following hyperlink. TBI - Costs PDF file