Thailand Accounting & Tax Glossary

The Board of Investment (BOI) grants incentives to promoted projects, including a corporate income tax exemption of up to 8 years, or up to 13 years for some advanced-innovation activities.

Corporate income tax (CIT, ภาษีเงินได้นิติบุคคล) is the tax a Thai company or juristic partnership pays on its net profit. The standard rate is 20%. Small companies that meet two conditions pay lower rates on the first 3 million baht of profit.

P.N.D.50 is the annual corporate income tax return. A company or juristic partnership files it and pays the tax within 150 days of the last day of its accounting period.

P.N.D.51 is the half-year corporate income tax return. It is filed and paid within two months after the first six months of the accounting period, usually on half of the estimated profit for the full year.

Reduced CIT rates for a small Thai company: 0% on net profit up to 300,000 baht, 15% from 300,001 to 3,000,000 baht and 20% above. The company needs paid-up capital of 5 million baht or less and sales and service income of 30 million baht or less.

A Thai payer withholds tax from many payments and remits it monthly: P.N.D.1 for employee pay, P.N.D.3 for payments to individuals and P.N.D.53 for payments to companies. The payee gets a withholding certificate, called 50 Tawi.

The Revenue Department's system for issuing tax invoices and receipts electronically. A VAT registrant can choose to join it. A simpler Time Stamp route exists for businesses with income up to 30 million baht.

P.P.30 is the monthly VAT return. Every VAT registrant files it for each calendar month, with any VAT due, by the 15th of the following month, even when there were no sales.

A full tax invoice is the document a VAT-registered seller issues. The buyer needs a valid tax invoice to claim the input VAT on its own P.P.30.

Value added tax (ภาษีมูลค่าเพิ่ม) is charged at 7% in Thailand. The Revenue Code rate is 10%, but a royal decree holds it at 7%. The latest decree, No. 807, runs to 30 September 2027.

A business that regularly sells goods or services in Thailand must register for VAT once its annual turnover exceeds 1.8 million baht, before trading or within 30 days of crossing the threshold.

A Thai company's audited financial statements are approved by the shareholders within 4 months of year-end and filed with the Department of Business Development within 1 month of approval.

Employer and employee each pay 5% of monthly wages to the Social Security Office. From 1 January 2026 the wage base is 1,650 to 17,500 baht a month, so the maximum is 875 baht each.