Brief of Business Tax

Based on the net taxable profits, calculated by subtracting income derived from its business during a financial year by all tax deductible costs incurred in such period.

The standard CIT rate is 20%.

Half year tax return (PND 51) must be filed with TRD within 2 months after the end of the first-six month of each accounting period. 

Annual tax return (PND 50) must be filed with TRD within 150 days after the end of each accounting period, together with the audited financial statements certified by a qualified Thai auditor. 

The deducted withholding tax and paid-half year CIT can be used as credit against the total tax payable of the relevant year.

Tax is required to be withheld from a payment by Thai juristic entities in 2 broad circumstances: 

• Payments to another Thai juristic entity or foreign entity conducting business in Thailand

• Payments to foreign entities not conducting business in Thailand.

Withholding tax rates vary depending on the trypes of the income and the tax status of the receiving entity. 

Tax withheld must be reported and remitted by the payer within 7 days after the end of the month in which the payment was made. 

VAT is generally levied on sale of most goods in Thailand, provision of services provided and/or consumed in Thailand and importation of goods and services into Thailand.

The standard VAT rate is 7%

VAT-business operators are required to register for VAT within 30 days from the date on which the tax base exceeds THB 1.8 million per year. VAT-business operators can also register for VAT before commencing their VAT business operations. 

VAT registrants are required to file monthly VAT returns (PP 30) within date 15th of each month to report output VAT charged and input VAT incurred from the previous month, together with payment of VAT, if any.

Certain Thai businesses are excluded from the VAT system and are, instead, subject to SBT. SBT is calculated as a percentage of gross receipts.

The businesses subject to SBT and applicable rates such as 3.3% for Banking and similar businesses, 2.75% for Life Insurance, and 3.3% for Trading in immovable properties

SBT registrant, a return should be submitted each month, regardless of whether any SBT is due, within 15th of the following month. 

Stamp duty only applies to certain types of instruments (e.g. agreements, receipts etc.) as listed in the Stamp Duty Schedule annexed to the Thai Revenu . 

The rate of stamp duty varies for each type of instrument.