Corporate Tax in Thailand
- Tax Base For Resident and Foreign Companies
- Non residents have to pay the VAT.
|Corporate Income Taxe||30% of net taxable profit. For more details, see Thailand tax rate.|
- Tax Rate For Foreign Companies
- A domestic corporation is subject to tax on worldwide income, while a foreign corporation is subject to tax on income generated in Thailand. Tax is generally levied at the rate of 30% of net profits.
- Capital Gains Taxation
- All earned income from capital gains is taxed the same as regular income.
- Main Allowable Deductions and Tax Credit
Certain exemptions from corporate income tax are provided under the Revenue Code, Royal Decrees issued under the Revenue Code, and the Investment Promotion Act :
-Dividends paid by a limited company, registered under Thai law, to another Thai limited company or to a company registered under the law governing the Stock Exchange of Thailand may be exempt from corporate income tax, if the holding of the shares in the payer company is in compliance with conditions prescribed in the Revenue Code.
- A reduction or exemption from tax may be granted to juristic entities in accordance with tax treaties between Thailand and foreign countries.
- A corporate income tax exemption for a period of 3 to 8 years may be granted to promoted businesses under the Investment Promotion Act.
In addition, dividends, fees for goodwill, copyright or other rights received from the promoted businesses may also be exempt from income tax in the hands of the recipient. Regarding Deductible Expenses and Allowance:
Generally, expenses incurred exclusively for the purpose of generating income or for the purpose of business, are tax deductible. However, the deduction of some expenses and allowances must comply with the rules prescribed in the Revenue Code.
For additional information access the 2009 DELOITTE tax guide on Thailand.
- Other Corporate Taxes
- A 12.5% taxe is levied on the rental value of real property. A 3.3% transfer tax also apply on immovable property.
Country Comparison For Corporate Taxation
|Thailand||East Asia & Pacific||United States||Germany|
|Number of Payments of Taxes per Year||23.0||24.5||11.0||16.0|
|Time Taken For Administrative Formalities (Hours)||264.0||218.2||187.0||215.0|
|Total Share of Taxes (% of Profit)||37.4||35.4||46.8||48.2|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
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