A Thai Company generally pays tax at 30% of Net profit. However, some types of company are entitled to a rate reduction.
• Small business with paid up capital less than 5 million baht
20% of Net profit < 1 million baht
25% of Net profit 1-3 million baht
• Company registered in the Stock Exchange of Thailand (SET)
25% of Net profit < 300 million baht
• Newly registered company in the stock exchange of Thailand (SET) and Market for alternative Investment (MAI)
25%of Net profit for newly registered company in SET
20% of Net profit for newly registered company in MAI
• Bangkok International Banking Facility and Regional Operating Headquarters
10% of Net profit from qualified income
• Association and foundation
2% or 10% on gross receipts
WITHOLDING TAX
Types of income
Withholding tax rate
1. Employment income
5 - 37 %
2. Rents and prizes
5 %
3. Ship rental charges
1 %
4. Service and professional fees
3 %
5. Public entertainer remuneration
- Thai resident
- non-resident
5 %
5 - 37%
6. Advertising fees
2 %
PERSONAL INCOME TAX is applied on a graduated scale as follows;
Net Annual Income (Baht)
Tax Rate
0
150,000
0%
150,001
500,000
10%
500,001
1,000,000
20%
1,000,001
4,000,000
30%
4,000,001
over
37%
Other types of taxable income and the rate of standard deduction include:
. Interest, dividends, capital gains on the sale of securities: Forty percent but not exceeding 60,000 baht.
. Rental income: Ten percent to 30 percent depending on type of property leased.
. Professional fees: Sixty percent for income from medical practice, 30 percent for others.
. Income derived by contractors: Seventy per cent.
. Income from other business activities: Sixty-five percent to 85 percent depending on the nature of the business activity.
The following annual personal allowances are permitted:
Taxpayer
THB 30,000
Taxpayer's spouse
THB 30,000
Each child's education
THB 15,000 (limit 3)
For taxpayer contributions to an approved provident fund
THB 10,000
For taxpayer and spouse for interest payments on loans for purchasing, hire-purchasing or construction of residential buildings
THB 10,000
For taxpayer and spouse with respect to contributions to Social Securities Fund
Actual contribution not more than 10% of adjusted income
PROPERTY PURCHASE Tax Summary:
Tax Type
Tax Rate
Transfer fee
2.0%
Stamp Duty
3.3%
Specific Business Tax
0.1%
Withholding Tax
1.0%
The above taxes are typically calculated on the Lands Department appraised value or the sale price whichever the higher
