Corporate Income Tax
All business establishments must have a taxpayer identification card within sixty days of incorporation. The corporate income tax rate is 30% of net profit. Corporate taxes are due semi-annually. Financial statements must be prepared annually by a company auditor. The Revenue Department requires that accounts be in the Thai language. The books must be kept at a place of business for ten years.
For more information on corporation income tax, please refer to the Revenue Department Click here
Value Added Tax
Created in 1992, the VAT is applied to each stage of the production process, and is paid on a monthly basis. The VAT rate is 7%. Exports, domestic transportation and certain other sales are exempted from VAT.
Personal Income Tax
Every person, resident or non-resident, who derives assessable income from employment or business in Thailand, or has assets located in Thailand, is subject to personal income tax, whether such income is paid in or outside of Thailand. Personal income tax rate is 30% if the net annual income is between 1,000,001 – 4,000,000 Baht, and 37% if the net annual income is over 4,000,001 Baht.
For more information on tax structures, please refer to the Revenue Department Click here
Treaties to avoid double taxation
Thailand has treaty agreements to eliminate double taxation with Canada and United States. The treaties generally place taxpayers in a more favorable position for Thai income than they would be under the Revenue Code, as profits will only be taxable if the taxpayer has a permanent establishment in Thailand.