Taxation in Thailand

Updated on Wednesday 01st June 2016

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Companies registered under the Civil and Commercial Code (CCC) and foreign companies doing business in Thailand through an office, branch or dependent agent commonly are subject to corporate income taxation in Thailand, except if exempt under a tax treaty. There are withholding taxations and a branch profits remittance tax. An organization could also have to register its business for VAT purposes. Specific Business Tax is applied on certain business transactions, like for example banking activities, interest on loans and sales of immovable assets. Stamp duty is charged on certain contracts or devices. Other forms of taxation in Thailand are comprised of the property taxation, a sign board tax, customs duty and so on.


Taxes for companies in Thailand


The main taxation rates in Thailand are as follows:

•    Corporate income tax rate: 20%;
•    Income tax rate for petroleum businesses: 50%;
•    Branch corporate income taxation rate: 20%;
•    Taxation on capital gains: 20% (standard) or 15% (for overseas receivers);
•    Basis: Internationally;
•    Participation exemption: No;
•    Capital tax: No;
•    Social security contributions: 5% of remuneration on a monthly basis;
•    Property tax: 12.5%;
•    Local development tax: 0.25%-0.95%;
•    Specific business tax: 3.3%, including the municipal tax of 10%;
•    Stamp duty: 0.1% or as stated according to the Revenue Code;
•    VAT: 0%/7% - reduced from 10% until 30 September 2015 as of the year 2015. Our Thai lawyers can provide more details on this matter.


Loss relief:

•    Carryforward: five years;
•    Carryback: No;
•    Double tax relief: Yes;
•    Tax consolidation: No;
•    Transfer pricing regulations: Yes;
•    Thin capitalization regulations: No;
•    Controlled foreign business regulations: No;
•    Tax year: Accounting period of maximum 12 months;
•    Advance payment of taxation: Yes;
•    Return payable date: 150 days after the end of the accounting period.

Withholding tax:

•    Dividends: 10%;
•    Interest: 0%/1%/10%/15%;
•    Royalties: 3%;15%;
•    Branch remittance taxation: 10%. Our law firm in Thailand can offer further assistance regarding this matter.
 

Exemptions to taxation in Thailand


Tax exemptions in Thailand and different tax incentives are obtainable to all qualified organizations, conditioned by every tax privilege, for example Regional Operating Headquarters (ROH) or actions promoted according to the Board of Investments (BOI) and others.

Please contact our lawyers in Thailand for more details on taxation in this country.

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