1. Basis of Taxation
Income is taxed on a preceding year basis, for example, income for 2007 is taxable in the year of assessment 2008. A juristic entity registered under Thai laws, income is taxed on worldwide basis; a juristic entity registered under foreign laws, income is taxed on territorial basis. Thai residential individual, income is taxed on worldwide basis.
2. Corporate Tax
Corporate income tax is 30%. Tax rate is reduced for SME Enterprises. SME Enterprise in this regards means a juristic entity registered under Thai laws having paid-up capital not over Baht 5 million at the end of accounting period. Tax rates are detailed below:
Net profit |
Tax rate (%) |
1-150,000 |
0 |
150,000 – 1,000,000 |
15 |
1,000,001-3,000,000 |
25 |
3,000,001 up |
30 |
3. Withholding tax rate (non-treaty)
|
Resident |
Non-resident Individual/Corporation |
Dividends |
10% |
10% |
Interest |
1%,15% |
15% |
Royalties/know-how |
3% |
15% |
Rents (for moveable property) |
5% |
15% |
Management fees |
3% |
15% |
Technical fees |
3% |
15% |
Directors’ fees |
Progressive rate* |
15% |
* for progressive rate please see item 4 below
4. Residential individual tax rates
Profit range* |
Profit amount |
Tax rate |
Tax amount |
1-150,000 |
150,000 |
0% |
0 |
150,001 – 500,000 |
350,000 |
10% |
35,000 |
500,001-1,000,000 |
500,000 |
20% |
100,000 |
1,000,001-4,000,000 |
3,000,000 |
30% |
900,000 |
4,000,001 up |
|
37% |
|
* Profit means net income after deduction of expenditure, personal allowances and other allowances according to the Revenue code.
5. Non-residential individual tax rates
15%, except dividend 10%
6. Goods and Services Tax
Value added tax, 7% of goods or services prices.
7. Estate duty
When a person dies in Thailand, Estate Duty must be paid if the Estate has not been devolved to any heirs and the said Estate earns the income at level to be taxed. Tax to be paid is calculated same as Residential individual tax (item 4).
8. Stamp duty
Types of transactions |
Stamp |
Lease contract, transfer of share, hire-purchase contract, hire of work |
Baht 1 for every Baht 1,000 of contract value. |
Loan of money or agreement for bank overdraft |
Baht 1 for every Baht 2,000 of loan amount. |
Power of attorney |
Baht 10 |
Memorandum or association of a limited company |
Baht 200 |
Articles of association of a limited company |
Baht 200 |
Partnership contract |
Baht 100 |
Proxy for voting at a meeting of a company |
Baht 20 for 1 meeting; Baht 100 for more than 1 meeting |
9. Property tax
Types of properties |
Tax rate of assessable value of property per year |
Land and building for commercial or industrial purpose |
0.3% |
Residential land and building, agricultural land |
0.1% |
10. Income tax filing deadlines
Types of Form |
|
Deadlines |
Phor.Ngor.Dor. 90,91 |
Residential individual |
End of March of the following year. |
Phor.Ngor.Dor. 90,91 |
Non-residential individual |
End of March of the following year. |
Phor.Ngor.Dor. 50 |
Companies |
150 days after accounting closing date |
Phor.Ngor.Dor. 50 |
Partnerships |
150 days after accounting closing date |
11. Double Tax Agreements.
Certain payments by resident in Thailand to non-residents are subject to domestic withholding tax rates. The rates of taxes may be reduced under the terms of a double tax agreements with a treaty country as those listed below.
Country |
Dividend % |
Interest % |
Royalties % |
France |
10 |
3,10,15 |
5,15 |
Singapore |
10 |
10,15 |
15 |
Netherlands |
10 |
10,15 |
5,15 |
Indonesia |
10 |
10,15 |
10 |
Malaysia |
10 |
10,15 |
15 |
Philippine |
10 |
10,15 |
15 |
Poland |
10 |
10,15 |
5,15 |
Canada |
10 |
10,15 |
5,15 |
Australia |
10 |
10,15 |
15 |
Sri Lanka |
10 |
10,15 |
15 |
Japan |
10 |
10,15 |
15 |
Vietnam |
10 |
10,15 |
15 |
Czech Republic |
10 |
10,15 |
5,10,15 |
The USA |
10 |
10,15 |
5,8,15 |
Laos |
10 |
10,15 |
15 |
Mauritius |
10 |
10,15 |
5,15 |
Luxemburg |
10 |
10,15 |
15 |
Bangladesh |
10 |
10,15 |
15 |
Norway |
10 |
15 |
15 |
Denmark |
10 |
10,15 |
5,15 |
Germany |
10 |
10,15 |
5,15 |
Italy |
10 |
10,15 |
5,15 |
Belgium |
10 |
10,15 |
5,15 |
Pakistan |
10 |
10,15 |
10,15 |
England & North Ireland |
10 |
10,15 |
5,15 |
Finland |
10 |
10,15 |
15 |
India |
10 |
10,15 |
15 |
Austria |
10 |
10,15 |
15 |
China |
10 |
10,15 |
15 |
Sweden |
10 |
10,15 |
15 |
Hungary |
10 |
10,15 |
15 |
Switzerland |
10 |
10,15 |
5,10,15 |
Israel |
10 |
10,15 |
5,15 |
South Africa |
10 |
10,15 |
15 |
Romania |
10 |
10,15 |
15 |
Nepal |
10 |
10,15 |
15 |
Spain |
10 |
10,15 |
5,8,15 |
New Zealand |
10 |
10,15 |
10,15 |
Uzbekistan |
10 |
10,15 |
15 |
South Korea |
10 |
10 |
15 |
Hongkong |
10 |
10,15 |
5,10,15 |
|
