Country：泰国 · Tax & Audit
Thailand · Tax & Audit
The Thai standard corporate income tax (CIT) rate is 20%. SMEs are exempt on the first THB 3 million of taxable income and pay 15% on the portion from THB 3 million to 30 million. VAT is 7% (registration required when annual taxable turnover exceeds THB 1.8 million). BOI-promoted companies can enjoy CIT exemptions (up to 13 years) and import duty reductions. Dividends to resident corporate shareholders have no withholding; cross-border payment withholding follows tax treaties.
Key points
- CIT standard rate 20%; SME first THB 3 million exempt, THB 3–30 million portion 15%.
- VAT 7%; mandatory registration when annual turnover exceeds THB 1.8 million.
- BOI: CIT exemption up to 13 years (A1+ class), import duty exemption for machinery.
- Resident corporate dividends no withholding; cross-border royalties and interest withholding per tax treaties.
- Global Minimum Tax (GMT): groups with consolidated revenue of EUR 750 million must assess (Thailand has prepared legislation).
Procedure
- Register the tax number with the RD.
- VAT registration (turnover over THB 1.8 million).
- Prepay monthly or semi-annually; file annually.
- Prepare audited financial statements (at threshold).
- BOI companies apply for exemptions and duty reductions.
Hard requirements
- Tax and VAT registration; annual filings; audit (at threshold); transfer pricing documentation.
Costs
CIT 20%; VAT 7%; audit and advisor fees.⏱ ⏱ Timeline：Registration immediate; monthly VAT and annual CIT filings.⚠ Common risks
- Effective burden heavily affected by BOI; without promotion, 20% applies.
- VAT registration threshold triggers compliance obligations.
- Groups meeting GMT standards must top up; transfer pricing review.
- Audit threshold triggers additional costs.
Handbook
📘 Step-by-Step Handbook (with owner / timeline / cost / penalties)
Applies to：Tax registration, filing, audit, and BOI tax incentive linkage for foreign companies in Thailand.
Prerequisites
- DBD registration certificate and tax number obtained.
- Annual taxable turnover assessed against the VAT registration threshold (THB 1.8 million).
- BOI-promoted status assessed (involving exemptions and separate accounting).
| Step | Action | Owner | Timeline | Cost | Official form / system | Notes & penalties |
|---|---|---|---|---|---|---|
| 1 | Register the tax number with the RD. Complete tax identification registration with the Revenue Department for all filings. | Company / accountant | Immediate after registration | Low government fees | RD tax number registration | Penalty：Late registration or filing faces fines |
| 2 | VAT registration (mandatory when annual taxable turnover exceeds THB 1.8 million). Standard VAT rate is 10% nominally but effectively 7% (extended repeatedly; 7% from 2025-10-01 to 2026-09-30); register when annual turnover reaches THB 1.8 million. | Company / accountant | Register immediately at threshold | Low government fees | VAT registration | Penalty：Exceeding the threshold without registration faces fines and back tax |
| 3 | Semi-annual prepayment (PND.51) and annual filing (PND.50). CIT standard rate 20%; SMEs (paid-up capital not over THB 5 million and annual revenue not over THB 30 million) are exempt on the first THB 300,000, pay 15% on THB 300,000–3 million, and 20% above THB 3 million. | Accountant | Semi-annual filing within 2 months after the half-year; annual PND.50 within 150 days after the fiscal year end | Accountant fees | PND.51, PND.50 | Penalty：Late filing adds 1.5%/month interest and administrative fines (up to about THB 20,000/month) |
| 4 | Prepare audited financial statements (at threshold). Prepare financial statements under Thai GAAP, audited by a licensed CPA, and file with the Commerce Ministry. | A Thai-licensed CPA. | Annual audit | Audit fees | Audited financial statements. | Penalty：Unaudited or false audits are penalized. |
| 5 | BOI companies apply for CIT exemptions and duty reductions. A1+ class can enjoy 10–13 years CIT exemption (uncapped), A1/A2 8 years, A3 5 years, A4 3 years, B no CIT exemption; plus machinery and raw material import duty exemptions. | BOI company / advisor. | Per the BOI certificate. | Application fees | BOI exemption and duty reduction applications. | Penalty：Failure to segregate BOI and non-BOI accounts revokes exemption with back tax. |
| 6 | Transfer pricing documentation and GMT assessment (group consolidated revenue not less than EUR 750 million). Thailand implements the 15% Global Minimum Tax (QDMTT) from 2025-01-01 for MNE groups with consolidated revenue over EUR 750 million; related-party transactions require TP documentation. | Tax / group. | Ongoing | Advisor fees | Transfer pricing documentation, GIR. | Penalty：QDMTT-qualifying groups not filing face top-up tax. |
✅ Self-check list
⚠ Common pitfalls
Effective burden heavily affected by BOI; 20% without promotion影响：Tax burden expectation deviation.规避：Assess BOI applicability early before establishment.
VAT registration threshold triggers compliance obligations影响：Fines and back tax if unregistered规避：Monitor turnover; register at THB 1.8 million.
GMT-qualifying group top-up影响：Effective rate below 15% is collected规避：Assess QDMTT with BOI/non-BOI separate accounting.
Transfer pricing review影响：Adjustments with additional tax and fines规避：Prepare TP documentation at arm's length.
BOI projects not separately accounted, exemption revoked影响：Exemption revoked with back tax规避：Separate BOI and non-BOI accounting.
Late filing fines (1.5%/month)影响：Continuously accumulating fines规避：Establish a filing calendar with accountant tracking.
📅 Ongoing post-incorporation obligations
- Semi-annual PND.51 and annual PND.50 filings.
- Monthly VAT filing (if registered).
- Audited financial statements filed with the Commerce Ministry.
- Transfer pricing documentation retained.
- GMT filing (where applicable).
- Social security and personal income tax filings.
🔗 Official portals
📎 Source：Thailand Revenue Department (RD); BOI tax incentives; VAT law
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