Corporate income tax (CIT) HANDLED
Most companies in Thailand will have to pay corporate income tax, however there are some special exemptions. Corporate Income Tax (CIT) is the tax paid on company profits. Companies earning under 3 million baht in net profit are subject to 15% whereas companies earning more than this are taxed at 20%. For new businesses under 300,000 baht income per year, no CIT is collected. Different company types will have different tax requirements.
FIND OUT MORE
Thailand Corporate Tax Rates
Reduced Rate
Applies to qualifying Thai SMEs and foreign companies earning non-dividend income here.
-
Qualifying SMEs (paid-up capital under THB 5 million, revenue under THB 30 million): applies to the portion of net profit between THB 300,001 and THB 3 million. The first THB 300,000 is exempt, and anything above THB 3 million reverts to the standard rate.Based on net profit
-
Foreign companies not conducting business in Thailand, receiving income other than dividends from Thai sources.Based on gross receipts
Standard Rate
Applies to companies that do not qualify for either reduced rate.
-
Companies with paid-up capital over THB 5 million, taxed on all net profit with no reduced bracket.Based on net profit
-
For qualifying SMEs, the portion of net profit above THB 3 million, which reverts to the standard rate.Based on net profit
-
Companies newly listed on the Market for Alternative Investment (MAI), for their first 5 accounting periods.Based on net profit
Cross-Border
Applies to cross-border payments, whether incoming to or outgoing from Thailand.
-
Banks earning profits from International Banking Facilities (IBF).Based on net profit
-
Companies remitting profit out of Thailand.Based on the amount remitted
-
Foreign companies not conducting business in Thailand, receiving dividends from Thai sources.Based on the gross dividend amount
STAY COMPLIANT
Why Partner With Attori Law
The right rate from the start
Determine which rate and bracket applies to your company, standard, SME, or another category, so you're not overpaying or under-filing.
Mid-year advance filing (PND 51)
Prepare and file your half-year advance return based on a realistic profit estimate, not a rushed guess that creates problems later.
Year-end annual filing (PND 50)
Prepare and file your annual return, reconciled against your audited financial statements.
Deductions you're entitled to
Identify the deductions and allowances that legitimately reduce your taxable net profit.
Reconciling the two filings
Close the gap between your mid-year estimate and your actual year-end liability, so the annual filing doesn't bring a surprise bill.
Planning for growth
Advise on how growth affects your tax position, including when you're approaching the SME capital or revenue thresholds.
STAY COMPLIANT
PND 50 Vs. PND 51
Half-Year Filing (PND 51)
What it is: A mid-year corporate income tax prepayment. Most companies file this based on an estimate of their full-year net profit, paying half of the estimated tax. Listed companies, banks, and finance companies are treated differently, they calculate and pay based on their actual, audited profit for just the first six months, not an estimate.
When it's filed: Within two months of the end of the first six months of the accounting period. For a January to December fiscal year, that's by the end of August, the 7th of the following month for paper filing, or the 15th for e-filing.
Full-Year Filing (PND 50)
What it is: The annual corporate income tax return, based on the company's actual net profit for the entire accounting year, backed by audited financial statements certified by a licensed auditor.
When it's filed: Within 150 days of the fiscal year-end. For a January to December fiscal year, that's by the end of May the following year.
TAILORED TO YOUR NEEDS
Bookkeeping Versus Accounting
Bookkeeping, monthly accounting, and auditing are separate services here, not one wrapped inside the other. Many clients need more than one, but you can also engage each on its own.
Bookkeeping
The day-to-day recording and organizing of your transactions.
- Issuing invoices
- Recording daily transactions
- Bank reconciliation
- Tracking receipts and payments
- Payroll processing
- Issuing withholding tax certificates
- Preparing books for the accountant
Monthly Accounting
Turning your financial position into filed returns and decisions, on a recurring monthly basis.
- Preparing adjusting entries
- Tax filing (VAT, WHT, CIT, PIT)
- Tax planning and advisory
- Regulatory compliance (DBD, BOI)
Auditing and Financial Statement Preparation
Periodic, not monthly, built around your fiscal year-end.
- Preparing financial statements
- Coordinating the annual audit
- Filing audited statements with the DBD
Common Corporate Income Tax Mistakes
Underestimating the mid-year PND 51 by more than 25%
If your estimate falls more than 25% short of your actual annual profit, a 20% surcharge applies to the shortfall, on top of the tax itself. This is one of the more serious CIT-specific penalties, and it's avoidable with a realistic estimate.
Registering with paid-up capital of THB 5 million or more when it wasn't necessary
The SME reduced rate isn't something you claim, it applies automatically based on your registered capital and revenue. Once a company registers at or above THB 5 million in paid-up capital, it's locked out of the reduced rate permanently, even if the business itself stays small.
Missing legitimate deductions and allowances
Every deduction missed inflates your taxable net profit, and with it, the tax you pay on money you were never required to pay tax on.
Missing the PND 50 or PND 51 deadline
A fine of up to THB 2,000, plus a 1.5% monthly surcharge on any unpaid tax, charged for every month or part of a month it's overdue.
Filing figures that don't match your audited financial statements
Any mismatch between your CIT filing and your audited figures invites Revenue Department scrutiny and can trigger a reassessment.
Overestimating PND 51 out of caution
Paying more than necessary at mid-year ties up cash you could be using elsewhere. It's refundable, but only once your annual filing is settled.
Incorrect invoicing and receipts
An expense without a properly issued tax invoice or receipt may not be deductible, even when the expense itself was legitimate and necessary for the business. Getting the documentation right at the time of purchase matters as much as the expense itself.
Get the guidance you need Consult with us for free
TRUST AND ACCOUNTABILITY
What Clients Say
LUKAS KIRCHBERGER
Very professional and reliable law firm with excellent communication. They were clear, responsive, and provided practical legal advice without unnecessary complications. I felt well supported throughout the entire process and can highly recommend Attori Law to both individuals and businesses seeking legal assistance in Thailand.
CONRADO CATIMBANG
I had the pleasure of working with this company for registering my business, as well as handling my visa, work permit, and trademark filing. The entire process was seamless and efficient. They were consistently professional, knowledgeable, and provided amazing suggestions whenever I had concerns. They also kept me updated every step of the way, making the experience stress-free. Their kindness and helpfulness truly stood out. I highly recommend them!
SANKET VELHAL
I was handling a complicated situation around Thai business compliance + immigration/Non-B visa process, with deadlines and a lot of moving parts. Their team stayed calm, explained things clearly, and gave me realistic options instead of false promises... ... If you’re an expat or business owner in Thailand and you need help with visa/work permit, company filings, or compliance, I would definitely recommend Attori Law. They know what they’re doing and they treat clients with respect.
TRYSTAN TRESTCHENKOFF
Me and my partner registered a company with Attori and for now the service is reliable, good and on time. I recommend them to anyone willing to register a company in Thailand.
Scott
Simple and straightforward to talk to for all business and work permit related matters. Excellent customer service!
JOHN BEARDMORE
Attori Law provides excellent legal support. Golf offers a very personalized service, taking the time to understand every detail and making the whole process smooth and professional. Highly recommended.
QUALIFYING COMPANIES
BOI Company Exemptions
BOI-promoted companies in Thailand can receive corporate income tax exemptions ranging from 3 to 15 years, based on their business type and investment. Following this exemption period, they may benefit from a reduced corporate income tax rate, typically set at 50% of the standard rate for a specified duration. Additional incentives include exemptions from import duties on machinery and raw materials, as well as other investment promotion benefits. To maintain these advantages, BOI companies must adhere to the conditions outlined in their promotion certificates, including specified investment levels and operational timelines. Here are some key industries that often benefit from tax exemptions:
Manufacturing:
High-tech or value-added industries, including electronics, machinery, and automotive parts.
Renewable Energies:
Projects focused on renewable energy sources, such as solar, wind, and bioenergy.
Research and Development:
Companies engaged in R&D activities.
Health and Pharmaceutical:
Investments in healthcare services, pharmaceuticals, and biotechnology development and research.
Logistics and Transportation:
Industries related to logistics and infrastructure development, particularly those enhancing trade and investment.
Tourism and Hospitality:
Projects that promote tourism development, including hotels and resorts in targeted areas.
Digital Economy:
Companies involved in information technology, software development, and e-commerce.
Agriculture and Food Processing:
Investments aimed at improving agricultural productivity and food safety.
ONE STOP LEGAL
Other Services We Provide
Monthly account keeping and filing. Tracking invoices, payments, receipts and payroll.
Preparing and filing VAT (PP30), PND 1, PND 3, PND 53 and other related taxes.
Auditing and submission of financial statements to the Ministry of Commerce (Sor.Bor.Chor. 3).
Value Added Tax registration and ongoing processing for your business.
Mid-year (PND 51) and year-end (PND 50) corporate income tax preparation and filing.
Tax ID number applications for both companies and individuals.
Preparing and filing annual personal income tax returns (PND 90 and PND 91) and half-year returns (PND 94).
Registering your company and staff with the Social Security Office, plus monthly payments.
Advice on accounting and tax in Thailand, before decisions are made rather than after.
FAQs
How much registered capital should I set at incorporation?
This is the decision with the longest tax consequence, and most people make it before they know that. Registering paid-up capital at 5 million baht or above locks you out of the SME reduced rate permanently, however small the business stays afterwards. If you are still at the company registration stage, it is worth taking advice before choosing the figure rather than after.
Do I qualify for the reduced SME rate?
If your paid-up capital is under 5 million baht and revenue under 30 million. You do not claim it, it applies automatically. The first 300,000 baht of net profit is exempt, the portion up to 3 million is taxed at the reduced rate, and anything above that reverts to the standard rate. It is a banded calculation rather than one rate applied to everything.
What are the two filing deadlines?
PND 51 is the mid-year prepayment, due within two months of your half year. PND 50 is the annual return, due within 150 days of your fiscal year end. On a January to December year that means the end of August and the end of May. The annual filing has to reconcile with your audited statements, so the audit needs to be finished first.
What happens if my mid-year estimate is wrong?
Undershoot by more than 25 percent of your actual annual profit and a 20 percent surcharge applies to the shortfall, on top of the tax. Overshoot and the excess is refundable, but not until your annual filing is settled, so it ties up cash for months. A realistic estimate matters more here than a cautious one in either direction.
Do I file if the company made a loss?
Yes. Both returns are due whether or not there is tax to pay, and a loss year still needs audited statements behind it. Losses can generally be carried forward against future profits, which makes filing a loss year properly worth more than it appears at the time.
Why was an expense disallowed?
Usually documentation rather than the expense itself. A genuine business cost without a properly issued tax invoice or receipt may not be deductible, and that is decided at audit rather than at the point you spend the money. Getting the paperwork right at the time of purchase is what protects the deduction.
Are foreign-owned companies taxed differently?
A Thai-registered company is taxed the same regardless of who owns it. What differs is what happens to money leaving the country, since remitting profit out of Thailand attracts its own charge, and double tax agreements may reduce it. That is a question about the flow of funds rather than about ownership.
Can BOI promotion remove the tax altogether?
For promoted activities, and for a defined period rather than permanently. Exemptions run from 3 to 15 years depending on the activity and the investment, often followed by a reduced rate. It applies to the promoted activity only, so anything else the company does is taxed normally and has to be recorded separately. See our page on BOI promotion.