Thailand Company Tax & Compliance Overview
Understanding Thailand company tax obligations is essential for any business operating in the Kingdom. Thailand’s tax system is rules-based, deadline-driven, and actively enforced, making compliance a core responsibility for company directors and shareholders.
This overview explains the key Thailand company tax obligations and compliance requirements, with a link to a detailed PDF guide for businesses seeking in-depth explanations, examples, and filing schedules.
Thailand Company Tax: Corporate Income Tax (CIT)
Corporate Income Tax is a central component of Thailand company tax and applies to all companies operating or generating income in Thailand. Taxable profit is calculated by deducting allowable business expenses from total income.
SME Corporate Income Tax Rates in Thailand
A company may qualify for SME corporate income tax rates if both of the following conditions are met:
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Paid-up registered capital does not exceed 5 million THB, and
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Annual revenue does not exceed 30 million THB
Thailand company tax rates for qualifying SMEs are:
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0% on net profit up to 300,000 THB
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15% on net profit from 300,001 to 3,000,000 THB
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20% on net profit exceeding 3,000,000 THB
Companies that do not meet SME criteria are subject to the standard Thailand company tax rate of 20% on total net profit.
Corporate Tax Filing Obligations
Companies must submit:
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A mid-year corporate income tax return based on estimated annual profit, and
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A year-end corporate income tax return reconciling actual financial results.
Accurate forecasting and expense classification are critical to managing Thailand company tax exposure and avoiding penalties.
Thailand Company Tax and Value Added Tax (VAT)
Value Added Tax (VAT) forms a major part of Thailand company tax compliance for businesses supplying goods or services in Thailand.
Businesses must:
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Register for VAT once annual revenue exceeds 1.8 million THB
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Apply VAT at the standard 7% rate
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Issue valid tax invoices
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File monthly VAT returns
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Retain VAT documentation for inspection
VAT payable is calculated as output VAT collected from customers minus input VAT paid on business expenses. Late or incorrect VAT filings are a common compliance risk under Thailand company tax regulations.
Thailand Company Tax: Withholding Tax (WHT)
Withholding tax is another key component of Thailand company tax, applying when companies make certain payments, including:
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Services and professional fees
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Rent and leasing
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Advertising
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Royalties, interest, and dividends
The paying company is responsible for:
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Deducting withholding tax at the applicable rate
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Filing monthly withholding tax returns
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Issuing withholding tax certificates to recipients
Withholding tax obligations vary depending on the type of payment, recipient status, and whether double tax treaties apply.
Thailand Company Tax and Payroll Obligations
Employers in Thailand must comply with payroll-related requirements that form part of overall Thailand company tax and compliance obligations.
Social Security Contributions
All employers must register employees with the Social Security Office (SSO) and submit monthly contributions.
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Employer contribution: 5% of salary
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Employee contribution: 5% of salary
Effective from 1 January 2026:
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Salary base cap: 17,500 THB per month
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Maximum monthly contribution: 875 THB per party (employer and employee)
Employers must register employees, submit monthly filings, and maintain payroll records. Social security coverage includes healthcare, maternity, disability, pensions, and unemployment benefits.
Why Thailand Company Tax Compliance Matters
Thailand company tax rules are strictly enforced. Errors such as late filings, underpayment, or missing documentation can result in penalties, surcharges, and regulatory scrutiny.
Download the Full Thailand Company Tax Guide
This page provides a high-level overview of Thailand company tax only. For detailed explanations, worked examples, filing deadlines, and practical compliance guidance, download the full guide below: