Thai Company Income Tax rates

Thai corporate income tax is a tax levied on the profits made by companies or associations. The general corporate income tax rate in Thailand is 30% for companies with a paid up share capital of more than 5 Million Thai Baht. The government has reduced corporate tax rates to promote specific business sectors and small and medium enterprises. The tax rate for companies with a paid up share capital not more than 5 Million Thai Baht at the end of its tax year shall be taxed at rate of:

  1. 15% over the first one million Thai Baht profit
  2. 25% over the profit between one million and three million and
  3. 30% for profits over three million Thai Baht.

Value Added Tax in Thailand

The general Value Added Tax ('sale tax') rate in Thailand is 10% but currently reduced to 7% on the price of a product or service subject to 'VAT'. Not all companies must charge Value Added Tax over the services or products, only if it is expected that its gross income of the business will exceed 1.8 million baht per year a company in Thailand must charge and register for Value Added Tax within 30 days of the date they reach 1,8 million baht in sales.