There are several types of corporate taxation in Thailand, including corporate income tax, VAT, SBT, customs duties, and export controls. The tax rates and regulations vary depending on the type of tax and the nature of the business. It is important for businesses operating in Thailand to stay informed about the latest tax regulations and compliance requirements to avoid penalties and ensure business continuity.
Corporate Income Tax:
Corporate income tax is imposed on the net profits of companies, both resident and non-resident, at a rate of 20%. However, small and medium-sized enterprises (SMEs) with a registered capital of less than 5 million baht are eligible for a reduced rate of 15%. In addition, the first 300,000 baht of taxable income is exempt from corporate income tax. The legislation governing corporate income tax in Thailand is the Revenue Code, which was last amended in 2018.
Specific Business Tax (SBT):
SBT is a tax imposed on certain types of businesses, such as financial institutions, insurance companies, and liquor manufacturers. The SBT rate varies depending on the type of business, with rates ranging from 0.1% to 3%. The SBT is calculated based on gross receipts or revenue, and businesses are required to file monthly or quarterly returns. The legislation governing SBT in Thailand is the Specific Business Tax Act, which was last amended in 2015.
Customs duties are taxes imposed on imported goods when they enter Thailand. The rate of customs duty varies depending on the type of goods, with rates ranging from 0% to 60%. The customs duty is calculated based on the value of the goods, as well as any applicable excise taxes, VAT, and other charges. In addition to customs duties, businesses may also be subject to other import taxes, such as excise taxes, stamp duties, and other fees. The legislation governing customs duties in Thailand is the Customs Act, which was last amended in 2017.
There are currently no export duties imposed on goods leaving Thailand. However, certain goods may be subject to export controls or licensing requirements, depending on their nature and destination. The legislation governing export controls and licensing in Thailand is the Export and Import of Goods Act, which was last amended in 2019.