Taxes in Thailand are governed by the Revenue Code, which follows the concept of a self-assessment system. The Revenue Department of the Ministry of Finance is responsible for administering taxes, which are imposed on regional and national levels.

    Direct taxes

    Corporate income tax

    A company incorporated under Thai laws will be considered as a resident company and be subject to the 20 percent corporate income tax (CIT) rate.

    For businesses that are classified as small or medium-sized (SMEs), the CIT rates can be seen in the following table.

    Net profitTax rates (%)
    0-300,000 baht (US$9,106)Nil
    300,001 baht (US$9,107) – 3,000,000 baht (US$91,021)15
    Over 3,000,000 baht (US$91,021)20

    SMEs can get a reduced tax rate if they meet the following criteria:

    • Income from the sales of goods and services not exceeding 30 million baht (US$909,844) in any accounting period; and
    • Having a paid-up share capital of not more than 5 million baht (US$151,600).

    Personal income tax

    To be considered a resident taxpayer, the individual must reside in Thailand for 180 days or more in any tax year.

    Net incomeTax rates (%)
    0-150,000 baht (US$4,321)None
    150,001 baht (US$4,322) – 300,000 baht (US$9,106)5
    300,001 baht (US$9,107) – 500,000 baht (US$15,154)10
    500,001 baht (US$15,155) – 750,000 baht (US$22,736)15
    750,001 baht (US$22,737) – 1,000,000 baht (US$30,315)20
    1,000,001 baht (US$30,316) – 2,000,000 (US$60,631)25
    2,000,001 baht (US$60,632) – 5,000,000 baht (US$151,632)30
    Over 5,000,000 baht (US$151,632)35

    Indirect taxes

    Value-added tax

    The value-added tax (VAT) rate is currently at seven percent until September 30, 2023, as part of the government’s efforts to boost the economy post-COVID-19. The normal VAT rate was 10 percent rate.

      VAT is liable to every person who conducts business in Thailand, which includes manufacturers, importers, and retailers. Businesses that have an annual turnover of over 1,800,000 baht (US$54,597) must register as VAT operators.

      Business activities are exempt from VAT, some of these are:

      • Taxpayers with sales with less than 1,800,000 baht (US$54,597) per year;
      • Educational services;
      • Research and technical services;
      • Religious activities and public charities;
      • Healthcare services;
      • Imported goods brought into a duty-free zone;
      • Sale of goods related to agriculture; and
      • Rent of immovable properties.

      Withholding tax

      The withholding tax imposed on dividends paid to another Thai company is subject to a 10 percent tax rate. This can be exempt if certain conditions are satisfied under the promotion law or Revenue Code.

      Interest paid to non-resident companies is subject to a 15 percent withholding tax whereas it is only one percent for residents. Royalties are subject to a three percent withholding tax for residents and a 15 percent tax on non-residents.

      Nature of incomeTax rate (%)
      ResidentsNon-residents
      Dividends10/010
      Interest115
      Royalties315
      Fees for technical services315

      Specific business tax

      The specific business tax (SBT) is an alternative tax levy on services. Businesses that are excluded from VAT will instead be subject to SBT.

      Business typeApplicable rate (%)
      Commercial banking or credit financing businesses3 (although for certain types of banking incomes the rate is 0.01 percent)
      Life insurance2.5
      Pawn business2.5
      Businesses with transactions similar to commercial banking3

      Land and buildings tax

      Land or buildings which the owner uses for agricultural purposes are exempt from the value of the tax base if the calculation of tax in total does not exceed THB 50 million.

      If the tax calculation does not exceed THB 50 million, land or structures that the owner uses for residential purposes and have his or her name included in the household registration certificate on January 1 of the tax year are exempt from the valuation of the tax base.

      The maximum tax rates for land and buildings are as follows:

      Purpose of land and buildingsMaximum tax rate
      Agricultural use0.15%
      Residential use0.3%
      Other use1.2%
      Empty or unused1.2%

      If the building or property is vacant or unoccupied for more than three years in a row, an extra 0.3% every three years will be applied, although the total cannot exceed 3%.

      In the case that the owner owns the building without owning the land and uses the building for residential purposes and his/her name is listed on the household registration certificate on 1 January of the tax year, the owner will be exempt from the value of the tax base in the calculation of tax if the amount does not exceed THB 10 million.

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