The Revenue Code of Thailand provides for Corporate Income Tax (CIT) to be imposed on both Thai and foreign companies.
A Thai company is defined as one that has been incorporated under the laws of Thailand. A foreign company is one that has been incorporated under foreign law but conducts business in Thailand.
When a foreign company does not conduct business in Thailand but derives income from Thailand, it is also subject to CIT under the Revenue Code. Types of such income include dividends, interest, professional fees, rents and service fees. CIT on these types of income is based on the gross amount received.
Companies established under Thai law are subject to CIT on their net profits from worldwide sources. The net profits of Thai-sourced income of foreign companies are also subject to CIT.
The CIT rate is typically 30 percent, although reduced tax rates and exemptions do apply depending on various factors. These factors include the type of business, the amount of registered capital, tax holiday availability, whether the company is listed on the Stock Exchange of Thailand and if it is a regional operating headquarters.
Thai law requires two corporate tax returns to be filed each year. A company faces penalties for filing a late return, failing to file a tax return or filing a return that contains false or inadequate information.