What is Corporate Income Tax (Thailand)?
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.
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Current Rate (The company's 12-month accounting period, usually the calendar year.)
20% of net profit. SME rates: 0% up to 300,000 baht, 15% from 300,001 to 3,000,000 baht, 20% above.
Example
A company that does not qualify as an SME with 1,000,000 baht of net profit owes 200,000 baht of CIT.
How Corporate Income Tax (Thailand) works in Thailand
CIT is administered by the Revenue Department (กรมสรรพากร) under the Revenue Code. It applies to a company limited, a public company limited, a limited partnership, a registered ordinary partnership and a branch of a foreign company. A sole proprietor pays personal income tax instead.
The annual return is P.N.D.50, due within 150 days of the year-end. A half-year return, P.N.D.51, is due within two months after the first six months. AccountsOS estimates CIT from your books and tracks both dates. You or your accountant file and pay.
Related terms
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.
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.
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