Corporate Tax Rate in Thailand: What You Need to Know in 2025

Understanding corporate taxes is a crucial part of running a business in Thailand. Whether you’re a local entrepreneur, an SME owner, or a foreign investor looking to establish operations in Thailand, staying compliant with the country’s tax regulations can make all the difference in your financial planning.

Thailand’s corporate tax structure includes tiered tax rates, special incentives for small businesses, and exemptions for certain industries. However, keeping up with deadlines, understanding VAT requirements, and making the most of available tax benefits can be complex. 

This guide will explain everything you need to know about corporate income tax in Thailand for 2025—helping you stay compliant while optimising your tax strategy.

Let’s dive in.

Thailand’s corporate income tax (CIT) applies to both Thai-registered companies and foreign entities conducting business in Thailand.

• Thai-registered companies are generally taxed on their worldwide income, meaning they must pay CIT on all earnings, including income generated outside Thailand, unless exempted by tax treaties or specific regulations.
• Foreign businesses operating in Thailand are taxed only on their Thai-sourced income. This includes revenue derived from local business activities, services performed in Thailand, or income linked to a permanent establishment, such as employees, representatives, or offices in the country.

According to Thai law, businesses must comply with the Revenue Code when filing their annual tax returns. The Revenue Department, under the Ministry of Finance, is responsible for overseeing tax regulations and compliance. [1] [2] An English version of the Revenue Code is available to help foreign businesses navigate Thailand’s tax system more easily. [3]

In Thailand, corporate income tax is imposed only at the national level, as there are no local government taxes on corporate earnings. Businesses are taxed on net profits, not gross income. While Thailand applies tiered tax rates for small and medium-sized enterprises (SMEs), larger companies generally face a flat corporate tax rate of 20%.

For specific industries, there may be differing tax rates and rules. A notable example is the Petroleum Income Tax, which can be as high as 50% of annual net profits. [4]

Businesses in Thailand must adhere to corporate tax regulations set by the Revenue Department, including calculating taxable income, filing tax returns, and maintaining accurate financial records to ensure compliance. Below is a step-by-step guide to fulfilling corporate tax obligations in Thailand. [5]

Determine Your Taxable Income

Before filing corporate income tax (CIT) in Thailand, businesses must ensure their financial records are accurate and taxable income is correctly calculated. CIT is levied on net profits, with certain business expenses eligible for deductions.

Key Considerations:

• Deductible expenses include R&D, job training, interest payments, and donations, subject to Revenue Department guidelines.
• Non-deductible expenses include general reserves and personal expenses.

Corporate Income Tax Filing Requirements and Deadlines

Businesses in Thailand must submit three key tax returns:

Businesses can file their corporate tax returns through the Revenue Department’s e-filing system or by submitting them in person at a Revenue Department office.

Payments can be made via bank transfer, online banking, direct debit, or cash at designated Revenue Department counters. Companies should ensure that payments are processed before the deadline to avoid penalties for late submissions.

Tax Record-Keeping Requirements

Businesses subject to corporate income tax in Thailand must comply with the Revenue Department’s record-keeping regulations, maintaining accurate financial records for compliance and potential audits.

All companies must retain accounting records, tax invoices, and supporting financial documents for a minimum of five years from the end of the relevant accounting period, as required by the Revenue Department. These records must be readily accessible in case of an audit.

Failure to maintain proper records may lead to penalties, difficulties during tax audits, or additional tax assessments imposed by the Revenue Department.

Beyond the corporate income tax, businesses in Thailand are subject to other tax obligations, including customs duties, stamp duty, real estate taxes, and value-added tax (VAT). Companies making payments such as salaries, dividends, and interest must also deduct and remit withholding tax to the Revenue Department. 

Below is an overview of the main tax obligations businesses should be aware of.

Customs Duties

Customs duties in Thailand range from 0% to 80%, depending on the type of goods, as classified under the Harmonised System and the ASEAN Harmonised Tariff Nomenclature (AHTN) 2022. Preferential tariff rates apply to imports from countries that have Free Trade Agreements (FTAs) with Thailand, reducing or eliminating duties on eligible goods.

Violations of customs regulations generally result in fines and tax recovery, though severe cases may lead to further legal consequences. Excise taxes apply to certain luxury goods and services, calculated based on either ad valorem (percentage-based) or specific rates. Additional levies may also apply to specific product categories.

In simpler terms, customs duties are calculated based on the classification, origin, and value of goods, following international trade agreements and tariff schedules. [6]

Stamp Duty

Stamp duty applies to various legal instruments, including rental agreements, share transfers, loan agreements, and insurance policies, with rates depending on the type of instrument. The duty must be paid by affixing physical stamps, impressing duty marks, or making a cash payment, as prescribed by law.

Late payment penalties vary based on the delay:

• Within 15 days of the due date → No penalty, only the standard duty applies.
• Between 15 and 90 days → 200% penalty (twice the duty payable).
• Beyond 90 days → 500% penalty (five times the duty payable).

There are no capital taxes in Thailand. Employers must withhold personal income tax from salaries and remit it to the 500% penalty (five times the duty payable). Revenue Department, while social security contributions are capped at THB 750 per month for both employer and employee.

Real Estate Taxes

Thailand imposes local real estate taxes, including the Land and Building Tax, which is calculated based on the appraised property value.

Land and Building Tax rates range from 0.15% to 1.2%, depending on the type and usage of the land. Vacant or unused land is subject to progressive tax rates, increasing up to 3% over time if left unutilised. [7]

Businesses using real estate for commercial purposes may also be subject to the Signboard Tax, which applies to signs displayed on business properties. The Signboard Tax is calculated based on the size and language of the sign, with higher rates applied to signs containing foreign characters. [8] 

Value-Added Tax (VAT)

Businesses with annual revenue exceeding THB 1.8 million must register for Value-Added Tax (VAT) with the Revenue Department. Importers are required to pay VAT on imported goods, regardless of whether they are VAT-registered businesses.

Thailand currently imposes a 7% Value-Added Tax (VAT) on most goods and services. Certain activities qualify for VAT exemptions, including small businesses below the revenue threshold, sales of unprocessed agricultural products, healthcare and educational services, and domestic land transportation.  

Additionally, some activities, such as exports and international transportation by air or sea, are subject to a 0% VAT rate. 

Specific Business Tax (SBT)

Specific Business Tax (SBT) is an indirect tax in Thailand that applies to businesses not subject to Value-Added Tax (VAT). This includes commercial banking, finance, life insurance, pawnbroking, and real estate sales conducted for profit.

The SBT rate varies by business type:

• 3.0% – Banking, finance, and similar businesses.
• 2.5% – Life insurance and pawnbroking.
• 0.1% – Real estate sales.

An additional 10% local tax is imposed on top of the SBT. Businesses subject to SBT must register within 30 days of commencing operations and file monthly tax returns, with payments due within 15 days of the following month.

Thailand offers a range of tax incentives to encourage both foreign and domestic investment, particularly in priority industries. These incentives are primarily managed by the Thailand Board of Investment (BOI). They include tax deductions, corporate income tax exemptions—often referred to as tax holidays—and additional benefits such as import duty exemptions and reduced withholding tax rates.

The following sections outline key tax incentives available to businesses in Thailand.

Corporate Income Tax Exemptions Through BOI

Thailand offers corporate income tax exemptions of up to eight years for businesses engaged in knowledge-intensive activities that contribute to economic growth and competitiveness. The exemption period depends on the industry classification and BOI criteria.

Businesses that use advanced technology, support infrastructure development, or enhance domestic resources may qualify for 3 to 8 years of tax exemptions.

Moreover, companies that expand their investment or operate in designated zones (such as the Eastern Economic Corridor (EEC)) may receive additional incentives, extending the total CIT exemption period to a maximum of 13 years. In some cases, a 50% CIT reduction may apply for five years after the exemption period ends. [9]

SMEs and Startups

Small and medium-sized enterprises (SMEs) in Thailand may qualify for special tax incentives, including reduced corporate income tax (CIT) rates.

SMEs that meet the following criteria qualify for reduced CIT rates:

• Paid-up capital under THB 5 million
• Annual revenue below THB 30 million
• 0% tax rate on net profits up to THB 300,000

SMEs that do not qualify for the 0% tax exemption may still access other tax benefits, including:

• Deductions on wage expenses
• Accelerated depreciation allowances on assets
• Exemptions on the sale of old machinery [10]

For startups, investors in government-promoted ventures can enjoy capital gains tax exemptions on share transfers until June 2032, provided the startup is certified by NSTDA or DEPA. [11]

Import Duty Exemptions

Thailand provides import duty exemptions on machinery and raw materials for businesses engaged in research and development (R&D) or export-oriented production, helping enhance competitiveness.

Businesses operating under BOI-promoted projects may also qualify for import duty exemptions, provided their activities align with national development priorities. These incentives encourage investment in technology, innovation, and production efficiency.

Regional Incentives

Although Bangkok is a key business hub, the Thai government promotes investment in other provinces by offering an additional 3-year corporate income tax exemption, extending the total exemption period to a maximum of 13 years for eligible projects.

Businesses in these designated provinces may also benefit from double deductions on transportation, electricity, and water costs for 10 years, along with an extra 25% deduction on infrastructure expenses.

The following provinces qualify for this scheme:

Sector-Specific Incentives

High-tech industries, such as semiconductors and advanced manufacturing, may qualify for up to eight years of corporate income tax (CIT) exemption. Additional incentives may be available depending on the project’s investment scope and alignment with national priorities.

Businesses engaged in smart, eco-friendly packaging and other Bio-Circular-Green (BCG) industries can receive up to eight years of CIT exemption, along with import duty exemptions on machinery and raw materials.

Double Tax Prevention Treaties

Thailand established its Double Taxation Agreement (DTA) network in 1963 with Sweden, later expanding it to cover 61 countries. These agreements prevent double taxation by ensuring that income is not taxed in both Thailand and the investor’s home country, creating a more predictable and competitive tax environment for foreign businesses.

DTAs define tax obligations between the source country (where income is earned) and the residence country (where the taxpayer is based). These treaties typically apply to personal income tax, corporate income tax, and petroleum income tax, ensuring clarity on taxation rights between the two jurisdictions.
Thailand has signed DTAs with 61 countries. You can view the complete list below or check specific agreements on the Revenue Department’s DTA page.[12]

Final Note

Tax compliance is a crucial part of doing business in Thailand. Staying informed about tax rates, filing requirements, and available deductions helps businesses operate efficiently while avoiding financial risks. For the latest tax regulations, visit the Revenue Department’s website or consult a tax professional.