Thai tax law has enough specificity that a guide saying "Thailand has a 20% corporate tax rate" and stopping there leaves you unprepared for VAT obligations, withholding tax mechanics, personal income tax on your director salary, and the annual compliance calendar. This guide covers every significant tax obligation a foreign business owner with a Thai company faces.
Overview: Main Taxes a Thai Company Faces
- Corporate Income Tax (CIT): Tax on the company's net profit, payable twice yearly
- Value Added Tax (VAT): 7% on most goods and services, collected from customers and offset against VAT paid to suppliers
- Withholding Tax (WHT): Amounts your company deducts from payments to suppliers and remits to the Revenue Department
- Personal Income Tax (PIT): Your personal obligation as a director drawing salary
- Specific Business Tax (SBT): Applies in specific sectors (financial, real estate) as an alternative to VAT
Corporate Income Tax
Standard rate and SME rates
Standard CIT rate: 20% on net taxable profit. However, most small foreign-owned companies qualify for reduced SME rates (paid-up capital of 5 million THB or less and annual revenue of 30 million THB or less):
| Net profit (THB) | CIT rate |
|---|---|
| First 300,000 | 0% (exempt) |
| 300,001 to 3,000,000 | 15% |
| Above 3,000,000 | 20% |
Filing deadlines
- PND 51 (half-year estimated tax): Due within 2 months of the end of the first 6 months of your accounting year. For a December year-end: due by end of August.
- PND 50 (annual tax return): Due within 5 months of your accounting year end. For December year-end: due by end of May.
BOI tax holidays
BOI-promoted companies in qualifying categories receive full CIT exemptions for 3-8 years. A 50% CIT reduction may apply for an additional 5 years after the exemption period. See the BOI guide.
VAT (Value Added Tax)
Thailand's VAT rate: 7%. Mandatory registration once annual revenue exceeds 1.8 million THB. Below that, registration is voluntary. VAT-registered businesses collect output VAT from customers and recover input VAT on purchases. The monthly VAT return (PP.30) is due by the 15th of each month for the prior month.
VAT registration
Done at the Area Revenue Office with jurisdiction over your registered business address. Once registered, your VAT number must appear on all tax invoices. If your revenue is below 1.8 million THB but you have significant VAT-able expenses, early voluntary registration lets you recover input VAT.
Withholding Tax
Withholding tax is not a tax on your company's income. It is a collection mechanism where your company, as a payer, deducts a percentage from certain payments and remits it to the Revenue Department on behalf of the recipient.
| Payment type | WHT rate |
|---|---|
| Professional and service fees | 3% |
| Rent (land and buildings) | 5% |
| Transport | 1% |
| Advertising | 2% |
| Dividends paid to individuals | 10% |
| Interest | 1% (companies), 15% (individuals) |
Personal Income Tax on Your Director Salary
As a foreign director drawing a salary, you have personal PIT obligations. If you are tax resident in Thailand (180+ days in a calendar year), your Thai-source employment income is taxable. Thai PIT rates for 2026:
| Annual taxable income (THB) | Rate |
|---|---|
| 0 to 150,000 | Exempt |
| 150,001 to 300,000 | 5% |
| 300,001 to 500,000 | 10% |
| 500,001 to 750,000 | 15% |
| 750,001 to 1,000,000 | 20% |
| 1,000,001 to 2,000,000 | 25% |
| 2,000,001 to 5,000,000 | 30% |
| Above 5,000,000 | 35% |
Your company withholds payroll income tax from your salary each month and remits it to the Revenue Department. You file an annual personal income tax return (PND 91) by the end of March each year. See the Personal Income Tax guide for deductions and allowances.
Dividends from a Thai company are subject to 10% withholding tax, which can be lower than salary income tax at higher income levels. However, your work permit requires you to have an employment contract and minimum salary. The right balance between salary and dividends is a tax planning decision for a qualified Thai accountant.
Annual Compliance Calendar (December Year-End)
| Timing | Obligation |
|---|---|
| Every month by 7th | Withholding tax returns (PND 1, 3, 53) for prior month |
| Every month by 15th | VAT return (PP.30) for prior month |
| 31 March | Personal income tax return (PND 91) for prior year |
| 31 May | Annual corporate income tax return (PND 50) for prior year |
| 31 August | Half-year estimated corporate income tax (PND 51) |
Missing deadlines triggers automatic surcharges of 1.5% per month on unpaid tax amounts, plus penalties for the late filing itself.
Double Tax Agreements
Thailand has signed double tax agreements (DTAs) with over 60 countries, including the US, UK, Australia, Germany, France, Singapore, and Japan. A DTA determines which country has the primary right to tax specific income categories and provides mechanisms to prevent the same income being fully taxed by both countries. The practical implications depend heavily on your residency status in Thailand and your home country, the nature of your income, and the specific treaty provisions. DTA treatment requires qualified professional advice for anyone with material income in multiple countries.