| In Thailand, all of the laws in connection | | | | necessary expenses; interest with exception |
| with taxation are governed by the Thai | | | | of company's funds and interest on capital |
| Revenue Code. The Ministry of Finance | | | | reserves; taxes, with exception of VAT and |
| administers the procedures in connection with | | | | CIT paid to Thai government; net losses that |
| tax collections. The government's Revenue | | | | have been carried forward from the previous |
| Department collects taxes under four main | | | | five years; bad debts; wear and tear and |
| categories such as corporate income tax, | | | | depreciation; contributions in connection |
| value added taxes (VAT), stamp duty, and | | | | with provident fund; donations up to 2% of |
| personal income tax. | | | | net profit; and entertainment expenses which |
| | | | can be up to 0.3% of the overall receipt |
| The country's tax collecting authorities also | | | | however, it should not exceed ten million |
| include the Customs Department, which | | | | baths. Further, special rates have been fixed |
| collects import as well as export duties; the | | | | for deductible expenses. For instance, |
| Excise Department, which is responsible for | | | | deduction is about 200% in the case of |
| the collection of excise tax; and other local | | | | Research and Development expense. Likewise, |
| authorities which collects municipal and | | | | in the case of job training, it is 150% |
| property taxes. Above mentioned is just a | | | | deduction in connection with its expenses. |
| brief info on the taxation system in | | | | |
| Thailand. In this article, discussed further | | | | Now we will discuss at what rate corporate |
| in detail is regarding corporate income tax | | | | income tax is deductible. Usually, corporate |
| as well as its features and rates. | | | | income tax rate in the country is 30% of net |
| | | | profit. However, rates differ depending upon |
| Corporate Income Tax (CIT) is in the form of | | | | the nature of tax payers. |
| direct tax, and is imposed on juristic | | | | |
| companies as well as registered partnership | | | | For example, in the case of small companies |
| firms that are formed under the laws of the | | | | with a paid up capital less than five million |
| country, such as limited partnerships, | | | | baths, corporate income tax rate would be on |
| private limited companies, public limited | | | | the basis of below mentioned |
| companies, and ordinary registered | | | | |
| partnerships. | | | | - If net profit does not exceed one million |
| | | | baths, then the rate at which corporate |
| Corporate income tax is imposed on both local | | | | income tax would be charged is 15% |
| and foreign companies. It is calculated on | | | | |
| the net profit and has to be paid at the end | | | | - If net profit is more than one million |
| of every accounting period. But, a Thai | | | | baths and up to three million baths, then CIT |
| company is entailed to pay tax on the basis | | | | rate would be 25% |
| of its worldwide net profit. On the other | | | | |
| hand, a foreign company operating in the | | | | - In case, the net profit is more than three |
| country is required to pay corporate tax only | | | | million baht, CIT rate would be 30% |
| on the net profit that it has derived from | | | | |
| carrying out of the business in Thailand. | | | | In the case of companies listed in SET (Stock |
| But, a foreign company would be levied | | | | Exchange of Thailand), the corporate income |
| corporate tax on its overall receipts, | | | | tax rate would be as follows |
| provided it is engaged in businesses such as | | | | |
| international transport business. | | | | - For net profit up to 300 million Baht, the |
| | | | rate would be 25% |
| Likewise, a foreign company, although it does | | | | |
| not have any business in the country, may be | | | | - For the balance net profit, the rate is 30% |
| imposed corporate tax on its receipts, in | | | | |
| case, it derives any kind of income from | | | | For companies newly listed in the SET, the |
| Thailand, such as, interests, service fees, | | | | rate would be 25% of the net profit. |
| professional remuneration, and dividend. | | | | Likewise, in the case of banks that derive |
| | | | profits from IBF (International Banking |
| Mostly, corporate income tax (CIT) is | | | | Facilities), the rate would be 10% of net |
| calculated on the net profit of the company | | | | profit. Corporate income tax rates also vary |
| and that too on the accrual basis. While | | | | in the case of foreign companies. For |
| calculation, a company takes into account all | | | | example, For instance, the CIT rate would be |
| revenues derived during an accounting period, | | | | 3% of net profit in the case of foreign |
| and deducts them all of the expenses that | | | | companies engaged in the business of |
| have been incurred during an accounting | | | | international transportation. Similarly, the |
| period as per the Revenue Code. | | | | rate is 10% in the case of foreign companies |
| | | | that receive any kind of remuneration or |
| On calculation of corporate income tax, | | | | dividend from the country. |
| deductible expenses include ordinary and | | | | |