Corporate Income Tax

The Corporate Income Tax (CIT) is a direct tax levied on juristic entities carrying on business in Thailand or deriving income from Thailand.

The CIT therefore applies to entities incorporated under Thai law, as well as to foreign entities conducting business in Thailand or receiving income paid from or in Thailand which is subject to CIT under the Thai Revenue Code.

Tax deductibility of expenses

The taxable income of a juristic entity is computed by deducting expenses incurred for the sole purpose of business from all revenue generated (business income, dividends, interests, royalties, etc…) in the same accounting period.

However, the deductibility of expenses and allowances must comply with rules prescribed by the Thai Revenue Code:

Deductible expenses

Non - deductible expenses

How to calculate your CIT?

The CIT is calculated on the company net profits, i.e all revenue deducted by allowable expenses, to which the below tax rates apply:

Taxpayer Tax base Rate (%)
Small company *
  • Net profit not exceeding 300,000 baht
  • Net profit from 300,000 not exceeding 3 million baht
  • Net profit over 3 million baht
  • Exempt
  • 15%
  • 20%
Other companies
  • Net profit
  • 20%

How to submit your CIT?

Companies subject to CIT have the obligation to file their half year tax return (PND.51) within 60 days from the last day of the first 6 months of the ongoing accounting period (e.g by August 31st if the accounting period is ending 31st December), and to file their annual tax return (PND.50) within 150 days from the closing date of the previous accounting period (e.g by May 31st if the accounting period is ending 31st December).