How corporate tax works in Thailand
Thai-incorporated companies are taxed on worldwide income at 20%, while foreign companies are taxed on profits arising from or in consequence of business carried on in Thailand. Low-paid-in-capital SMEs can qualify for reduced tiers on the first bands of profit.
Foreign companies not carrying on business in Thailand can face final withholding tax on certain Thailand-source income. Dividends are generally subject to 10% withholding; many other categories, including interest, royalties, rentals and service fees, are generally subject to 15%, subject to treaty relief. Petroleum operations are taxed separately, and large MNE groups can also fall within the 15% top-up tax from fiscal years beginning on or after 1 January 2025.
Annual CIT returns are generally due within 150 days after year-end, with a half-year prepayment for many companies. VAT, payroll withholding, transfer pricing and land and building tax are separate compliance items.
Tax rates at a glance
- Corporate income tax
- 20%Standard
- SME corporate tax
- 0% / 15% / 20%
- Foreign-company WHT
- 15%
- Petroleum income tax
- 50%
- Top-up tax
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersInvestorsRegional operatorsHolding companiesHigh earners
Watch out for
- VAT is currently 7% until 30 September 2026, so companies need to watch both CIT and consumption tax cash flow.
- Transfer pricing, branch remittance, withholding tax and prepayment rules can matter as much as the headline 20% rate.
- Large multinational groups should review the 15% top-up tax and its compliance deadlines even if the Thai entity is otherwise routine.
Frequently asked questions
Does Thailand have corporate income tax?
Yes. The standard corporate income tax rate is 20%, and Thai companies are generally taxed on worldwide income.
What is the corporate tax rate for foreign companies?
Foreign companies not carrying on business in Thailand can face 15% final withholding tax on many Thailand-source payments, subject to treaty relief and the payment type.
When is the Thai corporate tax return due?
The annual corporate return is generally due within 150 days after the accounting period ends, with a half-year prepayment for many companies.