Understanding Thai Corporate Tax: A Primer for Foreigners

Thailand's tax system relies heavily on monthly reporting, which can be a shock to investors used to annual filings. Missing these monthly deadlines is the most common cause of fines for new companies.

The Big Three

1. Value Added Tax (VAT) - 7%

• Who: Companies earning over 1.8M THB/year.
• When: Filed monthly (Form PP.30) by the 15th of the following month.
• Note: You must file even if revenue is zero for that month.

2. Withholding Tax (WHT)

• What: Tax deducted at source for services (3%), rent (5%), advertising (2%), etc.
• When: Filed monthly (Form PND 3, 53) by the 7th.
• Important: You must issue a WHT certificate to every vendor you pay.

3. Corporate Income Tax (CIT)

• Rate: 20% on net profit (standard).
• When:
  • Mid-Year (PND 51): Estimate of half-year profit.
  • Annual (PND 50): Within 150 days of year-end.

Compliance is Visibility

The Revenue Department's systems are increasingly digital and interconnected. Discrepancies between your VAT filings and your CIT revenue are easily flagged.

Our Advice: outsource your accounting to a firm that understands international reporting standards and can explain these Thai nuances in plain English.