This page provides a comprehensive overview of key tax services in Thailand, covering both direct and indirect taxation for individuals, businesses, and foreign entities. It outlines Corporate Income Tax, Personal Income Tax, and Foreign Corporation Tax, along with core consumption and transaction taxes such as Value Added Tax (VAT), VAT on overseas services, Specific Business Tax, and Withholding Tax. Together, these sections explain who is liable, how taxes are calculated, and the main compliance obligations, offering a clear reference for tax planning, filing, and regulatory compliance in Thailand.
Corporate Income Tax is a government levy imposed on juristic persons deriving income from business operations during each accounting period. Each accounting period is 12 months. The accounting period may either run from 1 January to 31 December, or from the company’s registration date for a period of 12 months.
Taxpayers
Entities subject to Corporate Income Tax include companies or juristic partnerships registered under the Civil and Commercial Code, as well as other juristic entities, as follows:
which are subject to Corporate Income Tax in Thailand if any of the following conditions apply:
including commercial or profit-seeking activities conducted jointly between:
except those declared as public charities by the Minister.
with ministerial approval and published in the Government Gazette.
Corporate Income Tax = (Business income + Other income) – Deductible expenses (cost of goods/services + selling expenses + administrative expenses) – Advance tax paid
The corporate income tax return (Form PND 50) must be filed within 150 days from the end of the accounting period. Filing is required annually, regardless of whether the company has income.
Personal Income Tax is a direct tax imposed on individuals based on income received under the cash basis principle. Thailand applies both the source rule and the residence rule.
Under the source rule, income derived from employment, business, or property located in Thailand is subject to Thai tax, regardless of nationality or where payment is made.
Under the residence rule, any individual residing in Thailand for at least 180 days in a calendar year is considered a Thai tax resident. Foreign-sourced income remitted into Thailand within the same tax year is subject to Thai tax.
Foreign juristic entities operating in Thailand may be subject to:
Tax calculation methods and rates are generally consistent with those applicable to Thai-registered entities.
We provide advisory services for foreign corporations operating in Thailand.
VAT is an indirect tax levied on the sale of goods and provision of services at each stage of production and distribution, including imports. The standard VAT rate is 7%.
VAT Payable = Output VAT – Input VAT
VAT returns and payment must be submitted by the 15th of the following month.
Where payment is made to an overseas supplier not registered for VAT in Thailand, the payer must file and remit VAT at 7% on behalf of the foreign service provider.
VAT Payable = Service Fee x Input VAT
Specific Business Tax is an indirect tax imposed on certain specified businesses, including:
Withholding Tax is a prepayment of tax whereby the payer must withhold tax at the prescribed rate when making payment and remit it to the Revenue Department in accordance with the law.
