A Guide to Corporate Tax Services in Thailand: What Foreign Businesses Need to Know
Expanding your business into Thailand can be a highly profitable but risky gamble, especially when it comes to taxes. Understanding corporate tax services in Thailand is essential for any foreign company looking to establish a strong foothold in the Thai market.
Even though the Thai government actively promotes foreign investment, giving away tax exemptions and benefits, you still need to be careful when navigating the corporate tax landscape to avoid legal repercussions and unnecessary costs.
In this guide, we’ll break down everything your business needs to know about Thailand’s corporate tax system, common requirements, and the best local tax advisor to help your business stay compliant and efficient.
Overview of Corporate Tax in Thailand
1. Corporate Income Tax (CIT)
Corporate income tax is the percentage that you have to pay to the government based on your company’s revenue. In Thailand, the standard rate is 20% of your company’s net profits. However, certain incentives and reduced rates may apply, as seen in the table below:
| Taxpayer Type | Rate |
| Board of Investment (BOI) promoted companies | 0% or 50% reduction |
| Companies operating in Special Economic Zones (SEZs) | 0% |
| Companies with a net profit of 300,000 THB (9,279 USD) | 0% |
| Companies with a net profit of 300,001 THB (9,280 USD) to 3,000,000 THB (92,803 USD) | 15% |
| Companies with a net profit over 3,000,000 THB (92,803 USD) | 20% |
| International Business Centers (IBCs) | 3% to 8% depending on annual expenses |
2. Withholding Tax
Withholding tax is when money is deducted from employees’ salaries and directly paid to the government. In Thailand, this applies to various payments, with different percentages for tax and non-tax residents:
| Type | Tax Resident | Non-tax Resident |
| Interest | 1% | 15% |
| Royalties | 3% | 15% |
| Service fees | 3% | 15% |
| Rent | 5% | 15% |
| Dividends | 10% | 10% |
Withholding tax rates vary depending on the nature of the payment and whether a Double Tax Agreement (DTA) applies between Thailand and the foreign entity’s country. DTA means that you are only responsible for taxes in one country, either your country of origin or the country your company is in.
3. Value Added Tax (VAT)
Businesses earning more than 1,800,000 THB (55,688 USD) annually must register for VAT. This tax is levied on most deliverables that add value. The standard rate is 7%, though some goods and services are exempt or zero-rated, including:
- Imports brought into customs-free zones
- Educational services
- Healthcare services
- Religious services
- Charitable services
- Rental properties
Key Tax Compliance Requirements
Foreign companies operating in Thailand must adhere to strict filing and reporting obligations, including:
- Annual corporate income tax return (Form PND 50)
Due within 150 days after the fiscal year ends. This is mandatory for registered Thai companies and any foreign-owned companies that have a permanent office in Thailand. Late submission will cause fines of up to 4,000 THB (123 USD), with a 1.5 percent additional charge of the payable tax per month.
- Half-year tax return (Form PND 51)
Due within 2 months after the first 6 months of the accounting period. Failure to submit on time may result in penalties of up to 2,000 THB (61 USD) and lead to further audits.
- Audited financial statements
Submitted to the Ministry of Commerce and Revenue Department, there are 3 different types of audits:
- Business Operation Visit (BOV) Audits
- Tax Refund Audits
- Formal Tax Audits
Failure to comply can result in interest charges and reputational damage.
Why You Need Corporate Tax Services in Thailand
Managing Thai corporate tax obligations internally can be overwhelming, especially for foreign businesses unfamiliar with local laws and practices. Engaging a local tax advisory firm or accounting provider can offer:
1. Local Expertise
A qualified provider understands the nuances of Thai tax law, including BOI incentives, VAT exemptions, and industry-specific rules.
2. Regulatory Compliance
They ensure timely and accurate filing of all tax forms, helping your business avoid penalties or audits.
3. Tax Planning and Optimization
Advisors can help structure your operations to minimize tax liabilities within legal frameworks, especially useful if you operate in multiple countries.
4. Representation and Liaison
In case of audits or inquiries from the Thai Revenue Department, your tax advisor can represent you and communicate on your behalf.
Choosing the Right Tax Service Provider
When selecting a corporate tax service provider in Thailand, consider the following:
- Experience with foreign clients
- Fluency in English and Thai
- Knowledge of international tax treaties
- Transparent pricing and service packages
- Digital capabilities such as cloud accounting and e-filing
Partnering with a reputable firm not only ensures compliance but also supports your overall business growth in Thailand.
Why Double M is the Tax Service Provider for You
With offices all over Asia, Double M is an experienced market entry consultant with extensive tax services that will streamline your bookkeeping and day-to-day business operations. Our services include
- Company Tax Compliance
- Tax Calculation
- Tax Planning
And more.
Thailand offers significant opportunities for foreign businesses, but success depends on staying compliant with local tax laws. By working with Double M, you can focus on growing your business while ensuring your operations meet all fiscal obligations.
What are you waiting for? Contact us now to get hands-on support tailored to your business needs.