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corporate income tax

An annual review of your income tax liability will ensure that you are not liable for fines or charges from HMRC. There are a few ways that you can seek to reduce your income tax bill and those include; making pension contributions, providing gift aid contributions, equalising the income between spouses or civil partners, and Enterprise Investment Scheme investments. Our specialist tax services will ensure you are one step ahead of the game and highlight what you need to do to minimise your income tax liability.

Corporate income tax (CIT)

 All juristic companies and partnerships established under Thai or foreign law which carry on business in Thailand are subject to corporate income tax. A domestic corporation is subject to tax on worldwide income, while a foreign corporation is subject to tax on income generated in Thailand. Tax is generally levied at the rate of 20% of net profits.

Deductible expenses 

  • Depreciation of assets within rates specified under the Revenue Code 
  • Reserves set aside from premiums of an insurance business as well as reserves set aside as provision for bad debts from credit extension
  • Contribution to a provident fund for employees
  • Entertainment expense within 0.3% of total revenue or paid up capital limited to 10 milion baht
  • Up to 2% donations for public charities  
  • Operating losses carried forward for five accounting periods

Non deductible expenses

  • Personal expenses and gifts. 
  • Tax penalties, surcharges and criminal fines under the Revenue Code.
  • Any artificial or fictitious expenses.
  • Consideration for properties owned and used by the juristic entity.
  • Interest on capital, reserves, or funds of the juristic entity
  • Withholding tax paid absorbed on behalf of the supplier
 
***Certain exceptions exist

Income tax submission

 

Tax return Form

Submission deadline

submission penalty

7 days

After 7 days

PND 50 

Annual tax return

Within 150 days from the last day of the accounting period

e.g. for year ended 31 December 2019 submit on or before 30 May 2020

2,000 baht

4,000 baht

PND 51 

Half year tax return

Within 2 months from the last day of the first 6 months of the accounting period

e.g. for year ending 31 December 2019 submit on or before 31 August 2020

1,000 baht

2,000 baht

Half year tax is a prepayment calculated from the tax payable on the forecast net profit for the year. The prepaid tax is creditable against the full year tax liability.

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