The standard corporate tax rate in Thailand is 20 per cent on a company's net profit.
However, there are reduced rates for companies with small turnover:
Up to 300,000 THB - 0%
From 300,001 to 3,000,000 THB - 15%
Above 3,000,000 THB - 20%
Value Added Tax (VAT)
The VAT rate in Thailand is 7% (previously temporarily reduced in different years, but now it is 7% again).
Companies are required to register as VAT payers if:
- Their annual turnover exceeds THB 1,800,000;
- Or the company voluntarily registers for VAT resident status.
Withholding Tax on Dividends
When dividends are paid, the company withholds tax at the rate of 10% on the amount of dividends.
This tax applies to all recipients of dividends, both residents and non-residents.