Corporate Tax 101: The 20% Rate

Thailand's Corporate Income Tax (CIT) is the main tax your company will pay. Here's what you need to know about the 20% rate.

 

The Standard Rate

All Thai companies pay 20% CIT on net profits. This applies to:

• Thai Limited Companies
• Branch Offices
• Partnerships

 

How It's Calculated

Revenue - Allowable Expenses = Net Profit Net Profit × 20% = Tax Owed

Example:

• Revenue: 10,000,000 THB
• Expenses: 7,000,000 THB
• Net Profit: 3,000,000 THB
• Tax Owed: 600,000 THB

 

Allowable Deductions

You can deduct legitimate business expenses:

• Employee salaries and benefits
• Office rent and utilities
• Marketing and advertising
• Professional services
• Depreciation on assets
• Training costs (200% for some)

 

SME Benefits

Smaller companies can qualify for reduced rates:

| Net Profit | SME Rate | |------------|----------| | 0 - 300,000 THB | 0% | | 300,001 - 3,000,000 THB | 15% | | Over 3,000,000 THB | 20% |

Requirements: Paid-up capital ≤5M THB, annual revenue ≤30M THB.

 

BOI Advantage

BOI-promoted companies pay 0% CIT on profits from promoted activities for up to 8 years. This is the single largest tax benefit available.

 

Filing Requirements

• Annual filing required within 150 days of fiscal year end
• Most companies use calendar year (due by May 31)
• Half-year estimated filing also required

 

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