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:: TAX & ACCOUNTING
in Thailand - Corporate Income Tax
Revenue Code outlines regulations for the imposition
of taxes on income, with income tax divided into three
categories: Corporate income tax, value added taxes
(or specific business taxes), and personal income tax.
The general principle of Corporate Income Tax is based
on the collection of tax on net profit arising from
or in the consequence of the business carried out within
an accounting period from the following juristic entities:
Incorporated firms operating in Thailand pay income
tax at a rate of 30 percent of net profits. Foundations
and Associations pay income taxes at a rate of 2 to
10 percent of gross business income, depending upon
the activity however not foundations and associations
designated as tax exempt organizations. International
transport companies face a rate of 3 percent of gross
ticket receipts and 3 percent of gross freight charges.
companies registered under Thai law are subject to taxation
as stipulated in the Revenue Code and are subject to
income tax on income earned from sources within and
outside of Thailand. Foreign companies not registered
or not residing in Thailand are subject to tax only
on income derived from sources within Thailand.
business expenses and depreciation allowances, at rates
ranging from 5 to 20 percent, depending on the item,
or at rates under any other acceptable depreciation
method, are allowed as deductions from gross income.
Inventory must be valued at cost or at market price,
whichever is lower. Net losses can be carried forward
for up to five consecutive years.
Inter-corporate dividends are exempt from tax on 50
percent of dividends received. For holding companies
and companies listed on the SET, dividends are completely
exempt, provided the shares are held three months prior
to and after the receipt of dividends.
For gifts and donations can be deducted up to a 0.3
percent of income earned, or of paid-up capital at the
closing date of the accounting period, whichever is
Depreciation of assets of limited companies and partnerships
is based on cost. The rates of annual depreciation permitted
by the law generally vary from 10 to 20 years.
and representation expenses are deductible up to maximum
limits as a percentage of gross sales, or of paid-up
capital at the closing date of the accounting period,
whichever is greater.
A corporate taxpayer must file a half-year return and
pay 50 percent of the estimated annual income tax by
the end of eighth month of the accounting period. Failure
to pay the estimated tax or underpayment by more than
25 percent may subject the taxpayer to a fine amounting
to 20 percent of the amount in deficit.
to file a tax return, late filing or filing a return
containing false or inadequate information may subject
the taxpayer to various penalties. Failure to file a
return, and subsequent noncompliance with an order to
pay the tax assessed, may result in a penalty equal
to twice the amount of tax due. Penalties are due within
30 days of assessment.
A corporate taxpayer that overpays its taxes and duties
is entitled to claim a refund from the Revenue Department
within a period of 3 years from the last day of tax
filing for the applicable accounting year by using from
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