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Taxation
General
The principal Thai taxation law is the Revenue Code, which
regulates the collection of income tax (both personal and corporate), value
added tax, specific business tax and stamp duties. There are other acts which
govern the collection of other taxes, such as the Customs Act (which governs
the collection of customs duties) and the Excise Act (which governs the
collection of excise duties), the Land and Housing Tax Act and the Land
Development Act (which govern the collection of housing and land tax), the
Signboard Tax Act (which governs the collection of tax on signboards) and the
Petroleum Tax Act (which governs the collection of tax on petroleum products).
The Revenue Department of the Ministry of Finance
administers the collection of taxes under the Revenue Code. Generally, Thailand
applies a self-assessment system.
Thailand is a party to double taxation treaties with various
countries, which will affect taxation payable in Thailand by nationals of the
relevant countries and taxation payable by Thai nationals in the relevant
countries.
Corporate income tax
Domestic corporations are taxed on their worldwide income,
while foreign corporations are taxed on income generated in Thailand. The
income tax rate is, generally, 30 per cent and the same rate applies to both
domestic and foreign corporations (which have a permanent establishment in
Thailand). Generally, taxable income includes business income, dividends,
interests, royalties and service fees. Capital gains are treated as ordinary
income and are subject to the same corporate income tax rate.
There may be specific tax concessions which are applicable
to corporations with privileges from the BoI, corporations listed on the SET or
the Market for Alternative Investment, and corporations with regional operating
headquarters privileges.
In addition, withholding tax applies to specific categories
of income paid to corporations, including dividends, interest, royalties,
capital gains and certain service/professional fees.
Value-added tax
Thailand’s consumption tax is value-added tax (VAT),
collected on the sale of goods and provision of services. The standard rate of
VAT under the Revenue Code is 10 percent. However, as at 1 January 2010, a
concession rate of 7 percent still applied.
Personal income tax
Individuals resident in Thailand are taxed on their income
derived in Thailand and income derived from outside Thailand and brought into
Thailand in the same year in which the income is earned, while non-resident
individuals are taxed only on income derived from sources in Thailand.
Personal income tax rates are progressive, ranging from 5 percent to 37 percent, with a tax-free threshold of THB100,000 per year. Employers are required to withhold tax on payments of salary based on the projected tax payable for the year and remit them to the Revenue Department on a monthly basis.
Personal income tax rates are progressive, ranging from 5 percent to 37 percent, with a tax-free threshold of THB100,000 per year. Employers are required to withhold tax on payments of salary based on the projected tax payable for the year and remit them to the Revenue Department on a monthly basis.
Stamp duty
Stamp duties are collected on instruments specified in the
stamp duty schedule of the Revenue Code at the applicable rates, which are also
specified in the schedule. Generally, transfers of shares (in private and
public companies) are subject to stamp duty at a rate of 0.1 per