Corporate Tax in Thailand: A Comprehensive Guide for Businesses

Reviewed by ThaiLawOnline, a licensed Thai law firm practising in Thailand since 2006. Thai lawyer of record: Wichuda Atthamethakon, LL.M., Thai Bar Licence 3149/2556.

Last updated on September 5, 2026

Corporate tax in Thailand is a critical consideration for any business operating in the country. The corporate income tax (CIT) rate is normally 20%, which is relatively competitive compared to other countries in the region. However, there are a number of factors that businesses should be aware of when calculating their CIT liability, such as allowable expenses and tax exemptions. For example, a company that qualifies as a small company pays nothing on its first 300,000 baht of net profit, 15% on the slice above 300,000 and up to 3 million, and 20% on anything above 3 million. The reduced rates are not automatic and the qualifying test is the part most often left out: the company must have paid-up capital of not more than 5 million baht on the last day of the accounting period and income from the sale of goods and the provision of services of not more than 30 million baht in that accounting period. A company that fails either test pays 20% on the whole of its net profit.

If you are also personally tax resident here, see our guide to expat tax in Thailand.

Written in March 2024 by Sebastien H. Brousseau, LLB., B,Sc. Manager of ThaiLawOnline and permanent resident of Thailand. Mr. Brousseau managed several companies in Thailand, and had an accountant full-time for more than 15 years. His businesses did the accounting of about 100 companies and charity associations.

There are reasons why people setup companies in Thailand or abroad. It can be for some:

1. Benefits:

• Limited liability: The liability of the shareholders or members of a juristic person is limited to the amount of their investment in the company. This means that their personal assets are protected in the event that the company is sued or goes bankrupt.
• Business continuity: A juristic person is a separate legal entity from its shareholders or members. This means that the business can continue to operate even if there are changes in ownership or management.
• Tax benefits: Juristic persons may be eligible for certain tax benefits, such as lower tax rates or tax exemptions. This is why it is important to know about corporate tax in Thailand.
• Credibility: Creating a juristic person can make your business seem more credible and professional to potential customers and partners.
• Access to funding: Juristic persons may have easier access to funding from banks and other financial institutions.

2. Flexibility:

• Choice of structure: There are different types of juristic persons, each with its own advantages and disadvantages. This means that you can choose the structure that is best suited to your needs.
• Permitted activities: Juristic persons are generally free to engage in any lawful activity. This gives you the flexibility to expand your business into new areas in the future.
• Management structure: Juristic persons can have a variety of management structures, giving you the flexibility to choose the one that is most efficient and effective for your business.

or others:

• Succession planning: A juristic person can be passed on to heirs or successors, making it easier to plan for the future of your business.
• Estate planning: Juristic persons can be used for estate planning purposes, such as reducing the tax burden on your heirs.
• Asset protection: Juristic persons can be used to protect your assets from personal creditors.

3. Taxable Income and persons:

A company or a juristic partnership incorporated under Thai law could be liable to pay taxes which means:

• Limited company
• public company limited
• limited partnership
• registered partnership

The taxable income of a company for CIT purposes is determined by deducting all allowable expenses from its gross income. Allowable expenses include the cost of goods sold, operating expenses, and interest expenses. You have other juristic persons like a foundation which must make yearly corporate tax but they are subject to specific rules. Companies also under the BOI could have special incentives. Knowing corporate tax in Thailand can help you to save lots of money.

4. Foreign entities operating could also be subject to corporate tax in Thailand like:

• A company or juristic partnership incorporated under foreign laws and carrying on business in Thailand
• A company or juristic partnership incorporated under foreign laws and carrying on business in other places including Thailand
• A company or juristic partnership incorporated under foreign laws and carrying on business in other places including Thailand , in case of carriage of goods or carriage of passengers
• company or juristic partnership incorporated under foreign laws which has an employee, an agent or a go-between for carrying on business in Thailand and as a result receives income or profits in Thailand
• A company or juristic partnership incorporated under foreign laws and not carrying on business in Thailand but receiving assessable income under Section 40 (2)(3)(4)(5) or (6) which is paid from or in Thailand
• business operating in a commercial or profitable manner by a foreign government, organization of a foreign government or any other juristic person established under a foreign law
• Joint venture
• A foundation or association carrying on revenue generating business, but does not include the foundation or association as prescribed by the Minister in accordance with Section 47 (7) (b) under Revenue Code

5. Tax Exemptions

Certain types of income are exempt from CIT, and calculated as exempt. The revenue department website list the following:

1. Ordinary and necessary expenses. However, the deductible amount of the following expenses is allowed at a special rate:
   • 200% deduction of Research and Development expense,
   • 200% deduction of job training expense,
   • 200% deduction of expenditure on the provision of equipment for the disabled;
2. Interest, except interest on capital reserves or funds of the company;
3. Taxes, except for Corporate Income Tax and Value Added Tax paid to the Thai government;
4. Net losses carried forward from the last five accounting periods;
5. Bad debts;

6. Other exemptions on corporate tax in Thailand

6. Wear and tear;

7. Donations of up to 2% of net profits

8. Provident fund contributions;

9. Entertainment expenses up to 0.3% of gross receipt but not exceeding 10 million baht;

10. Further tax deduction for donations made to public education institutions, and also for any expenses used for the maintenance of public parks, public playgrounds, and/or sports grounds;

11. Depreciation: Provided that in no case shall the deduction exceed the following percentage of cost as shown below. However, if a company adopts an accounting method, which the depreciation rates vary from year to year, the company is allowed to do so provided that the number of years over which an asset depreciated shall not be less than 100 divided by the percentage prescribed below.”

In addition to the above exemptions, there are a number of other tax exemptions and incentives available to businesses in Thailand. Two commonly misstated examples are worth getting right. A foreign company engaged in international transportation is not exempt: it is taxed on its gross receipts at 3% rather than on net profit (Revenue Department rate table, item 6), so a shipping or airline branch owes tax even in a loss-making year. And research and development is relieved by an enhanced deduction of 200% of the expense, not by a tax credit, alongside 200% for job training and 200% for equipment provided for disabled persons.

7. Tax Deductions on Corporate Tax in Thailand

Companies are allowed to deduct certain expenses from their taxable income, including:

• Salaries and wages paid to employees
• Social security contributions paid on behalf of employees
• Rent and utilities expenses
• Travel and entertainment expenses
• Depreciation and amortization expenses
• Research and development expenses

8. Tax Filing and Payment

Companies are required to file CIT returns and pay corporate tax in Thailand within 150 days from the closing date of the accounting period, on Form CIT 50 (PND.50), with payment submitted together with the return. There is also a half-year obligation that this page previously left out. A company subject to CIT on net profits must estimate its annual net profit and pay half of the estimated tax on Form CIT 51 (PND.51) within two months after the end of the first six months of its accounting period; the prepayment is credited against the annual liability. An individual is taxed on the calendar year, but a company’s accounting period does not have to be the calendar year. An accounting period is twelve months; a newly incorporated company may run a shorter first period from its incorporation date, and an existing company may apply to the Director-General to change its closing date. The 150 days run from whatever that closing date is, so only a company that does use 1 January to 31 December has an end-of-May deadline. The tax rate will depends on many factors and we suggest to consult an accountant as it can be extremely complicated. For a summary, here is a good starting point.

9. Tax Treaties

Thailand has double tax treaties with at least 61 countries according to the revenue department. These treaties can help to reduce the amount of CIT that companies have to pay by preventing double taxation of the same income.

Conclusion

Thailand has a relatively competitive corporate tax regime, with a CIT rate of 20% and a number of tax exemptions and incentives available to businesses. However, it is important for businesses to carefully consider their CIT liability when operating in Thailand. ThaiLawOnline does not do accounting but we can help you to set up a company anywhere in Thailand. For accounting we suggest you to use Asia Accounts with Alan Lonie.

Last reviewed: 5 September 2026. The rates, thresholds and deadlines on this page were read against the primary instruments and against the Revenue Department’s own published guidance, not against summaries of them. Specifically: the Revenue Department’s Corporate Income Tax guidance, for the 150-day filing rule and Form CIT 50, the half-year prepayment on Form CIT 51, the accounting-period rule, the 20% standard rate and the rate table that taxes a foreign company in international transportation at 3% of gross receipts; and, for the small-company rates, Royal Decree No. 530 B.E. 2554 section 6 as amended by No. 583 B.E. 2558 and No. 603 B.E. 2559, read from the Royal Gazette itself (No. 603 at volume 133, part 33 Kor, page 42, 21 April 2016), which set the exempt first 300,000 baht, the 15% band to 3 million and 20% above it, and the two qualifying tests of paid-up capital and revenue. The Revenue Department’s own decree register was enumerated for anything later that amends that rate: six decrees after No. 603 touch related subjects and none of them changes the general small-company rate. Four statements were corrected and one omission filled, the most serious being that the page had said international transport companies are exempt when they are taxed at 3% of gross receipts. The 61 double tax treaties figure has since been checked and is right: the Revenue Department’s treaty page carries its list as structured data, and counting it gives 61 countries with an agreement in force, from Armenia to Vietnam, plus two terminated ones that are correctly not counted. Not verified, and named so you can weigh it: the depreciation table and the list of ordinary deductible expenses reproduce the Revenue Department’s wording and were not traced to the underlying sections of the Revenue Code; and no withholding-tax rate is stated on this page. Tax treatment turns on your own figures and structure, so take advice before relying on any of it.

• Corporate tax by the Revenue Department of Thailand

Corporate tax follows the structure you choose. Our business law in Thailand overview covers the available structures and what each one commits you to.