Corporate Tax in Thailand

Reviewed by Wichuda Atthamethakon, LL.M., Thai Bar Licence 3149/2556, for ThaiLawOnline, a Thai law firm acting for foreigners since 2006.

Edited by Sebastien H. Brousseau, LL.B., B.Sc. Last updated 2 November 2026.

Update log

2 November 2026: Added the statute box with Thai, English and French text and checked the page against the official text

Top-up tax for large multinational groups

Scope checked on 17 September 2026. The Emergency Decree on Top-up Tax B.E. 2567 applies to accounting periods beginning on or after 1 January 2025. The threshold concerns the multinational group: consolidated revenue of at least EUR 750 million in at least two of the preceding four accounting periods. In-scope groups must assess their exposure under the 15% global minimum-tax framework, including where a Thai company has BOI incentives. This is a separate group-based regime; the ordinary corporate income tax and SME rates explained below continue to apply according to their own conditions. See the Revenue Department’s official notice.

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 Sébastien Brousseau, LL.B., 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 in a limited company to any amount still unpaid on their shares (Civil and Commercial Code section 1096), so their personal assets are protected if the company is sued or goes bankrupt. This is not true of every juristic person: the partners of a registered ordinary partnership, and the unlimited partners of a limited partnership, are jointly liable for its debts without limit (sections 1050, 1070 and 1077).
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: A company acts within the objectives it registers with the Department of Business Development, which can be amended later to cover new lines of business. Where foreigners hold half or more of the shares, the Foreign Business Act also limits what it may do.
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

Full text

A limited company is a company formed with its capital divided into shares of equal value, the liability of each shareholder being limited to the amount, if any, unpaid on the shares held by that shareholder.

ThaiLawOnline translation

Our annotated section Official text

ไทย

มาตรา 66 ประมวลรัษฎากร

ข้อความเต็ม

Sources

Revenue Code, retrieved 2 November 2026
Civil and Commercial Code, Office of the Council of State, retrieved 31 October 2026

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. Deductible Expenses

The items below are deductible expenses, not exempt income. The Revenue Department lists them as follows:

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;
Interest, except interest on capital reserves or funds of the company;
Taxes, except for Corporate Income Tax and Value Added Tax paid to the Thai government;
Net losses carried forward from the last five accounting periods;
Bad debts;

6. Other deductible expenses for 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, at no more than the following percentages of cost a year, set by Royal Decree No. 145 B.E. 2527, section 4, issued under section 65 bis (2) of the Revenue Code. A company whose accepted accounting method gives uneven yearly rates may exceed a rate in some years, provided the asset is written off over no fewer years than 100 divided by the percentage.

Asset	Maximum rate a year
Permanent buildings	5%
Temporary buildings	100%
Cost of acquiring depletable natural resources	5%
Leasehold rights, with no written lease or with a lease renewable indefinitely	10%
Leasehold rights under a written lease with no renewal or a fixed renewal	100% divided by the years of the lease plus any renewal
Goodwill, trademarks, licences, patents, copyright and similar rights of unlimited duration	10%
The same rights of limited duration	100% divided by the years of use
Other depreciable assets, except land and stock in trade	20%

Two further rules in the same Decree: for assets in the last row other than passenger cars and passenger vehicles with up to ten seats, a company may use a declining-balance method at twice the rate in the first year, on the same minimum-life condition (section 4 as amended by Royal Decree No. 359 B.E. 2542, for assets acquired from 23 October 1999); and new machinery used for research and development costing at least 100,000 baht can take an initial 40% on the day it is acquired (section 4 bis).

In addition to these deductions, there are a number of 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. A company subject to CIT on net profits must estimate its net profit for the whole accounting period and pay tax computed on half of that estimate, on Form CIT 51 (PND.51), within two months after the end of the first six months of its accounting period (Revenue Code section 67 bis); listed companies, commercial banks and finance, securities and credit foncier companies instead pay on their actual net profit for the first six months; 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 a 30 May deadline (29 May in a leap year). The tax payable depends on many factors, and we suggest consulting an accountant, as it can be 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.

Frequently asked questions

What is the corporate income tax rate in Thailand?

Normally 20% of net profit. A qualifying small company pays nothing on its first 300,000 baht, 15% up to 3 million baht and 20% above that. It must have paid-up capital of not more than 5 million baht and income from goods and services of not more than 30 million baht.

When must a Thai company file its corporate income tax return?

Within 150 days from the closing date of its accounting period, on Form CIT 50 (PND.50), with payment. A company using the calendar year therefore files by 30 May, or 29 May in a leap year.

Is there a half-year corporate tax payment?

Yes. A company taxed on net profit estimates its profit for the year and pays tax on half of that estimate on Form CIT 51 (PND.51) within two months after the first six months. The prepayment is credited against the annual tax.

Are foreign shipping and airline companies exempt from Thai corporate tax?

No. A foreign company in international transportation is taxed at 3% of its gross receipts instead of on net profit, so it owes tax even in a loss-making year.

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. Re-checked on 10 October 2026: Royal Decree No. 145 B.E. 2527 on depreciation, sections 4 and 4 bis, read in Thai on the Revenue Department’s site (with the amendments by Nos. 319 and 359 noted there); the depreciation item had referred to a table of rates that was not on the page, and the table is now given from section 4. The other deductions in the list were not traced and remain as the Revenue Department words them. Tax treatment turns on your own figures and structure, so take advice before relying on any of it. Re-read on 4 October 2026: limited liability is now stated for limited companies only (Civil and Commercial Code section 1096), with the unlimited liability of registered partnership partners (sections 1050, 1070, 1077); the deductions list is no longer labelled as exempt income; the calendar-year filing date is given as 30 May.

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.

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Top-up tax for large multinational groups

Table of Contents

1. Benefits:

2. Flexibility:

or others:

3. Taxable Income and persons:

The law behind this page

Section 66 Revenue Code

Section 65 Revenue Code

Section 65 ter Revenue Code

Section 65 bis Revenue Code

Section 67 Revenue Code

Section 68 Revenue Code

Section 67 bis Revenue Code

Section 1096

มาตรา 66 ประมวลรัษฎากร

มาตรา 65 ประมวลรัษฎากร

มาตรา 65 ตรี ประมวลรัษฎากร

มาตรา 65 ทวิ ประมวลรัษฎากร

มาตรา 67 ประมวลรัษฎากร

มาตรา 68 ประมวลรัษฎากร

มาตรา 67 ทวิ ประมวลรัษฎากร

มาตรา 1096

Article 66 Revenue Code

Article 65 Revenue Code

Article 65 ter Revenue Code

Article 65 bis Revenue Code

Article 67 Revenue Code

Article 68 Revenue Code

Article 67 bis Revenue Code

Article 1096