For Foreign Companies

In Thailand, there are many kinds of business identities.

The type of business you chose will affect your tax rates and tax benefits. 

In general, the most common types of business are: 

		Thai company
			-  A company registered under Thai law.
		Foreign company
			-   A company carrying on business in Thailand but registered under foreign law.
			-   A company not carrying on business in Thailand but deriving income from Thailand.

Thai Company 

A Thai company generally pays tax at 20% (until 2015) of net profit.

However, some types of company are entitled to a rate reduction. 

		Small business with paid-up capital less than 5 million baht
			20% of net profit > 1million baht, 15% of net profit between 300,000 - 1 million baht, Exempt for net profit < 300,000 baht
		Company registered in the Stock Exchange of Thailand (SET)
			20% of net profit < 300 million baht for 5 consecutive accounting periods starting from 6th September B.E.2545.
		Newly registerd company in the Stock Exchange of Thailand (SET) and Market for Alternative Investment (MAI) within 3 years starting from 6th September B.E.2545
			20% of net profit for newly registered company in SET for 5 consecutive accounting periods.
			20% of net profit for newly registered company in MAI for 5 consecutive accounting periods.
		Bangkok International Banking Facility and Regional Operating Headquarters
			10% of net profit from qualified income
		Association and foundation
			2% or 10% on gross receipts

Foreign Company 

A foreign company carrying on business in Thailand, whether it has a branch, an office,

an employee or an agent in Thailand shall pay 30% tax (reduced to 20% until 2015) only

on profit deriving from business in Thailand.

However, international transportation company shall pay tax at the rate of 3% on gross receipts. 

Foreign Company Abroad 

A foreign company that does not carry on business in Thailand will be subject to withholding tax on

certain categories of income derived from Thailand. The withholding tax rates may be further reduced

or exempted depending on types of income under the provision of Double Taxation Agreement. 

Rates:

Tax Registration 

A foreign company carrying on business in Thailand, whether setting up a branch or an office

must apply for tax identification number from the RevenueDepartment. An application form (Lor Por 10.3)

together with other relevent documents i.e. a copy of a company’s registration license, house registration,

etc. shall be submitted to the Area Revenue Office within 60 days for the date of registration or operation. 

Tax Treaties to Avoid Double Taxation 

Currently, Thailand has concluded 57 tax treaty agreements : :

Armenia, Australia, Austria, Bangladesh, Bahrain, Belgium, Bulgaria, Canada, China P.R., Cyprus,

Czech Republic, Denmark, Finland, France, Germany, Hong Kong, Hungary, India, Indonesia, Israel, Italy,

Japan, Korea, Laos, Luxembourg, Malaysia, Mauritius, Nepal, the Netherlands, New Zealand, Norway,

Oman, Pakistan, the Philippines, Poland, Romania, Seychelles, Singapore, Slovenia, South Africa, Spain,

Srilanka, Sweden, Switzerland, Turkey, Ukraine, United Arab Emirates, United Kingdom of Great Britain

and Northern Ireland, United States of America, Uzbekistan, Vietnam, Kuwait, Russia, Chile, Burma,

Taiwan, and Estonia . 


Tax Filing and Payments 

Thai & Foreign Company Carrying on Business in Thailand 

Any Thai or foreign company carrying on business in Thailand must submit their tax returns and

payments twice a year. 

International Transportation Business 

A company shall submit tax return (CIT 52 form) and payment within 150 days after the closing date

of its accounting period. 

Foreign Company Not Carrying on Business in Thailand 

A taxpayer in Thailand shall withhold tax at source at the time of payment and submit it together with

CIT 54 form to the Area Revenue Office within 7 days of the following month after the payment is made. 

Electronic Filing and Payments 

A company can easily submit income tax return (CIT 50, 51, 52, 54) and make tax payment via internet

at http://www.rd.go.th The service opens daily form 6 am. – 10 pm. 

Tax Benefits 

A company that chooses to register under Thai law shall enjoy various tax benefit schemes such as;