Thailand Corporate Tax - Guide for International Expansion

Are you considering expanding your business to Thailand? Understanding the corporate tax landscape is crucial for making informed decisions about entering this dynamic Southeast Asian market.

Thailand offers a strategic location in the heart of ASEAN, with well-developed infrastructure and a growing economy. However, navigating the corporate tax requirements can be complex for international businesses. From standard rates to special incentives, there are various factors that could impact your tax obligations.

Whether you're planning to establish a subsidiary, acquire a local company, or simply explore business opportunities, having a clear grasp of Thailand's corporate tax system will help you plan effectively. And when you're ready to make the move, Wise Business can help streamline your international payments and local banking needs in Thailand.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Thailand Corporate tax rate in 2025

The standard corporate income tax rate in Thailand is 20% for companies with net profits exceeding 3 million baht annually. For smaller companies with net profits of 3 million baht or less, a reduced rate of 15% applies on profits up to 300,000 baht, with the remaining profits taxed at 20%.¹

Thailand also offers attractive tax incentives through the Board of Investment (BOI) for qualifying businesses. These incentives can include corporate income tax exemptions for 3-8 years, depending on the industry and investment criteria. Additionally, companies operating in designated Special Economic Zones may benefit from reduced tax rates.²

The Thai tax year runs from 1 January to 31 December, and companies must file their annual corporate income tax returns within 150 days after the end of the accounting period.² Thailand operates on a worldwide income basis for Thai tax residents, meaning Thai companies are taxed on their global income, while foreign companies are only taxed on Thai-sourced income.³

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How to pay corporate tax in Thailand

Corporate tax payments in Thailand must be made in Thai Baht (THB) through the Revenue Department's electronic filing system or at designated commercial banks. The Revenue Department has modernised its processes, with most companies now required to file and pay taxes electronically through the e-Filing system.^{4 6}

Companies must make an interim tax payment once yearly – within 2 months after the end of the first 6 months of the accounting period. The interim payment is calculated as half of the estimated current year's tax liability, based either on the prior year’s results or the company’s forecast, whichever is higher. The final tax return and any remaining balance must be submitted within 150 days after the accounting period ends.⁵

Late payment penalties are significant in Thailand. Interest is charged at 1.5% per month on unpaid taxes, and a fixed fine of up to THB 2,000 may apply for late filing. In addition, if under-reporting is discovered during an audit, penalties of 100%–200% of the tax due may be imposed, making timely and accurate compliance essential.⁷

Let's calculate the annual tax due for a company with a turnover of 1.5 million baht. Assuming a profit margin of 10%, the taxable profit would be 150,000 baht. Since this falls under the 300,000 baht threshold for small companies, the tax calculation would be:

• 150,000 baht × 15% = 22,500 baht in corporate income tax

If this payment were made 30 days late, the interest charge would be:

• 22,500 baht × 1.5% × 1 month = 337.50 baht

• Total amount due: 22,500 + 337.50 = 22,837.50 baht

For international businesses expanding to Thailand, having the right financial infrastructure is crucial. Wise Business provides local Thai Baht accounts that make it easy to pay corporate taxes, handle supplier payments, and manage day-to-day operations in local currency. This eliminates the need for costly currency conversions and helps you avoid the high fees typically associated with international banking.

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Tax Compliance in Thailand

To remain compliant with Thai tax regulations, companies must follow several obligations:⁸

• Annual accounts: A balance sheet must be prepared annually, certified by an auditor, approved by shareholders, and filed with the Commercial Registration Department within five months of the fiscal year-end, and with the Revenue Department within 150 days.
• Corporate taxes: Corporate income tax is set at 30% of net profits and must be paid twice each fiscal year. A midyear profit forecast requires an advance tax payment. Businesses can use corporate tax online filing to meet deadlines and avoid penalties. Knowing how long to file a corporate tax return is crucial. Late or false filings can result in fines up to twice the tax due, payable within 30 days of assessment.
• Other taxes: Companies must withhold income tax from employee salaries. A 7% VAT applies to most firms and is payable monthly. Businesses not subject to VAT may face a specific business tax of 0.1–3% based on gross receipts.
• Directors’ role: At least one director for a private limited company (five for a public company) must ensure compliance with all local legal and tax obligations.

International Expansion to Thailand

Thailand is often praised for its tourism-friendliness. But the country has more potential than it’s given credit for. Its GDP is $546.2 billion, and its population is over 70 million, which creates a large consumer base that speaks for itself. Its open and export-driven economy makes it the second-largest economy in ASEAN after Indonesia. Exports exceed imports, with a current account balance of $6.44 billion, signalling solid opportunities for businesses aiming to export globally.⁹

The Thai corporate tax rate stands at 20%. This is quite competitive compared to other regional economies. Businesses that register for corporate tax in Thailand gain access to a growing market supported by strong infrastructure and pro-investment policies. Corporate tax advisors often highlight the importance of Thailand’s Eastern Economic Corridor (EEC) scheme.¹⁰ This initiative connects sea, air, and land transport through high-speed rail, modernised ports, and airports, while offering incentives for businesses in over 30 industrial zones.¹⁰ Investments in the EEC already exceed 2 trillion baht, reflecting investor confidence and long-term growth potential.

When it comes to the economy, Thailand is pretty diverse. Services and tourism contribute nearly 50% of GDP, followed by industry at 40% and agriculture at 10%.¹¹ The region has welcomed 16.7 million tourists in the first half of 2025 alone. This has increased its overall consumption and created new retail, hospitality, and services opportunities. Private investment also rose 15.4% year-on-year in June 2025, further strengthening the case for business expansion.¹²

You can start a company in Thailand by following the steps listed below:¹³

1. Conduct market research to understand demand, competition, and pricing.
2. Develop a business plan with financial forecasts and resource requirements.
3. Choose a legal structure and select a business name.
4. Register the business with the Department of Business Development (DBD).
5. Set up tax registration with the Revenue Department. Corporate tax training or support from a corporate tax manager can help streamline compliance.
6. Apply for relevant licenses, such as an FDA license for food or drug businesses.
7. Open a company bank account.

Thailand combines a competitive Thai corporate tax rate, robust infrastructure, and growing domestic demand. For a streamlined overview of how to start a business in Thailand, check out this practical guide.

Read more about the corporate tax in Nevada

Incorporation of Business in Thailand

To incorporate a business in Thailand, you must complete several steps through the Ministry of Commerce:¹⁴

• Corporate name reservation: The proposed company name must not be identical or too similar to existing businesses. Certain names are restricted. Once approved, the reservation is valid for 30 days and may be extended for another 30.
• File a Memorandum of Association: This must include the approved name, the company’s location, objectives, registered capital, number of shares, par value, and the names of at least seven promoters.
• Convene a statutory meeting: A meeting is held once the share structure is defined. At least 25% of the par value of each subscribed share must be paid.
• Company registration: Directors must submit incorporation applications within three months of the statutory meeting. Registration fees are 500 baht per 100,000 baht of registered capital, with a minimum of 5,000 baht and a maximum of 250,000 baht.
• Corporate tax registration: Businesses liable for income tax must obtain a tax ID card and company number from the Revenue Department within 60 days of incorporation or starting operations. A corporate tax service or advisor can help ensure smooth compliance and reduce risks with your corporate tax bill.
• Reporting requirements: Companies must keep proper books of accounts and follow procedures under the Civil and Commercial Code, the Revenue Code, and the Accounts Act. Records can be prepared in any language, but a Thai translation must be attached.

Business Entities in Thailand

The Civil and Commercial Code of Thailand outlines the main types of business entities:¹⁵

• Unregistered Ordinary Partnership: All partners are jointly and fully liable for obligations.
• Registered Ordinary Partnership: Gains legal entity status once registered, separate from the partners.
• Limited Partnership: Liability is limited to the amount of capital contributed. Must be registered.
• Limited Company: The most common choice for permanent business operations. Requires at least seven shareholders, with no fixed minimum capital, but at least two million baht in fully paid-up capital is required for each work permit. At least 25% of subscribed shares must be paid at incorporation.

Private limited companies are the top choice for foreign investors as they provide limited liability and flexibility. To manage corporate tax obligations, businesses should compare corporate tax rates by country, use available tax credits, and seek advice on reducing tax through incentives like those in the Eastern Economic Corridor.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires a strategic approach that balances compliance with efficiency. Here are key practices that can help international businesses navigate Thailand's tax landscape effectively.

Establish robust compliance procedures from day one. Thailand's tax system requires precise documentation and timely filings, so implementing strong record-keeping practices and automated reminders for key deadlines is essential. Consider engaging local tax advisors who understand the nuances of Thai tax law and can help navigate complex regulations.

Leverage Thailand's extensive network of double taxation agreements (DTAs). Thailand has signed DTAs with over 60 countries, which can significantly reduce withholding taxes on dividends, royalties, and interest payments. Understanding these treaties can help optimise your overall tax position and avoid double taxation on the same income.

Take advantage of Thailand's investment incentives where applicable. The Board of Investment offers substantial tax benefits for qualifying activities, particularly in technology, manufacturing, and services sectors. These incentives can include corporate income tax holidays, reduced rates, and exemptions on import duties, making them valuable for businesses that meet the criteria.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Thailand efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Thailand

Who is liable for corporate tax in Thailand?

All companies incorporated in Thailand are subject to corporate income tax on their worldwide income. Foreign companies are liable for corporate tax only on income derived from sources within Thailand, including income from business operations, property rental, and certain types of investment income. Partnerships and joint ventures may also be subject to corporate tax depending on their structure and activities.

Are there any tax incentives for businesses in Thailand?

Yes, Thailand offers significant tax incentives through the Board of Investment (BOI) for qualifying businesses. These include corporate income tax exemptions for 3-8 years, reduced tax rates, and exemptions on import duties for machinery and raw materials. Special Economic Zones also offer additional incentives, including reduced corporate tax rates of 10-15% for qualifying activities. The Eastern Economic Corridor (EEC) provides enhanced incentives for targeted industries like automotive, electronics, and digital technology.

What is the tax treatment of dividends in Thailand?

Dividends paid by Thai companies to Thai resident companies may be exempt from corporate income tax to avoid double taxation. A full exemption applies if the receiving company is listed on the Stock Exchange of Thailand or holds at least 25% of the voting shares in the paying company for at least three months before and after the dividend is received. In other cases, 50% of dividend income may be exempt. Dividends paid to foreign companies are subject to withholding tax at a rate of 10%, though this rate may be reduced under applicable double taxation agreements. Dividends paid to individual shareholders are subject to a 10% withholding tax. For Thai resident individuals, this may be treated as a final tax or included in annual income with a tax credit.

What is the process for registering for corporate tax in Thailand?

Companies must register for corporate income tax within 60 days of incorporation or commencement of business operations. Registration is done through the Revenue Department, either online via the e-Filing system or at local revenue offices. You'll need to provide company registration documents, details of business activities, and accounting period information. Once registered, you'll receive a tax identification number that must be used for all tax filings and payments.

What are the common pitfalls to avoid regarding corporate tax in Thailand?

The most common mistakes include failing to make interim tax payments on time, inadequate documentation for expense deductions, and misunderstanding transfer pricing rules for related-party transactions. Many businesses also overlook the requirement to maintain proper accounting records in Thai language or certified translations. Additionally, companies often underestimate the complexity of VAT obligations, which are separate from corporate income tax but equally important for compliance. Working with qualified local tax advisors can help avoid these costly errors.

Sources used in this article:

1. PwC Tax Summaries: Thailand Corporate Income Taxes
2. Thailand Revenue Department: English Section
3. Siam-Legal: Corporate Tax in Thailand
4. Nishimura: Further Extension for E-Filing
5. PwC Tax Summaries: Thailand Corporate Tax Administration
6. Thailand Revenue Department: E-Filing
7. KPMG: 2025 Thailand Tax Calendar (PDF)
8. Ministry of Foreign Affairs of Thailand: Business Guide (PDF)
9. IMF: Thailand Country Profile
10. U.S. Embassy in Thailand: Why Thailand
11. Ministry of Foreign Affairs of Belarus: Thailand Economic Review
12. Bank of Thailand: Thai Economy
13. Thai Embassy: Comprehensive Guide to Starting a Business
14. Ministry of Foreign Affairs of Thailand: Business Guide (PDF)
15. Samui for Sale: Thailand Civil Code Part 2

Sources last checked 08/09/2025