27 Sept 2017
Tax Considerations in Thailand
Thailand is ranked 109th among 190 economies in the World Bank’s 2017 Doing Business report on the ease of paying taxes. The Revenue Department is the main tax administrator in the country, and the principal taxation law is the Revenue Code (2016).
An overview of the major types of taxes levied in Thailand is provided in the table below. Other taxes may also be applicable, such as stamp duty. Thailand and Hong Kong have secured a Double Tax Agreement (2005), from which Hong Kong companies may be entitled to benefit.
Corporate Income Tax (CIT)
Companies considered residents are taxed on chargeable income earned in the preceding financial year, while non-resident companies are taxed on their business income.
30% (standard rate) but 10%, 15% and 20% charged
Personal Income Tax (PIT)
Thai residents are taxed on worldwide income and non-residents taxed on income/assets received/located in Thailand. Resident status is determined as anyone spends more than 180 days in Thailand over a 12 month period.
5% to 37%
Value Added Tax (VAT)
VAT is charged on every purchase of goods or services. Companies with an income exceeding THB1.8 million (about US$54,000) per annum must be VAT registered.
Some transactions and business activities are exempt (e.g. all kinds of exports).
Specific Business Tax (SBT)
Certain businesses that are excluded from VAT will instead be subject to SBT.
2.5% to 3%
- Regulatory Environment
- Establishing a Presence
- Intellectual Property Protection
- Staff Recruitment
- Tax Considerations
- Import/Export Procedures
- Further Information