🇹🇭 Corporate Tax in Thailand

Headline rate: 20%

Private Limited Company (Co., Ltd.)

A Thai Co., Ltd. is subject to corporate income tax at a flat rate of 20% on net profits. Small and medium enterprises (paid-up capital not exceeding THB 5 million and revenue not exceeding THB 30 million) benefit from a reduced progressive rate: exempt on the first THB 300,000, 15% on THB 300,001 to THB 3 million, and 20% above THB 3 million. VAT is levied at 7% (reduced from the statutory 10% rate) on most goods and services. Dividends paid to non-resident shareholders are subject to 10% withholding tax, which may be reduced under a double tax treaty. BOI-promoted companies can receive corporate income tax exemptions for 3–13 years depending on the promoted activity and location. Thailand does not impose capital gains tax as a separate tax — capital gains are included in ordinary income and taxed at the standard corporate rate.

Representative Office (RO)

A Representative Office does not generate taxable income in Thailand as it is prohibited from engaging in revenue-generating activities. However, it must still file annual corporate income tax returns (showing zero or minimal taxable income) and is subject to withholding tax obligations on payments to employees and vendors. Operating expenses funded by the parent company are not generally treated as taxable income of the office. The office is exempt from VAT registration.

Key Facts

Double tax treaties: 61
Memberships: ASEAN, WTO, APEC, UN
Legal system: Civil law (based on Continental European model)
Fiscal year: Company chooses (most use January–December)

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.