Taxation

A number of international legal and accounting firms offer detailed guides for establishing a business in Thailand, including information about taxation.

Most forms of business organisations existing under Thai law, including foreign organisations conducting business in Thailand or deriving income from Thailand, whether they do business in Thailand or not, are subject to corporate income tax on their book profits adjusted for tax purposes. Capital gains are treated as ordinary income and are therefore subject to corporate income tax.

A Value Added Tax (VAT) of 7 per cent is applied to all stages of production of goods.

There are two exceptions to the obligation to pay customs duties on importation of machinery, equipment and materials. These are oil and gas concessionaries and their contractors, and certain companies promoted by the Board of Investment of Thailand.

As of 2017, the standard tax rate on corporate profit is 20 per cent. However, the tax rate for SMEs can be lower depending on their net profit. Details of Thailand’s corporate tax rates are available from the Thailand Revenue Department.