# What is the corporate income tax rate in Thailand?

Last updated: 25 October 2026
Country: Thailand
Category: tax

**Quick answer:** Thai corporate income tax is 20% of net profit. A small company with paid-up capital of 5 million baht or less and sales of 30 million baht or less pays 0% on the first 300,000 baht and 15% up to 3 million baht.

## Detailed explanation

## The standard rate

Corporate income tax (CIT) in Thailand is 20% of net profit, worked out on an accrual basis. It is paid by companies and juristic partnerships, including branches of foreign companies. The tax authority is the Revenue Department.

## SME rates

A small company pays:

- 0% on net profit up to 300,000 baht
- 15% from 300,001 to 3,000,000 baht
- 20% above 3,000,000 baht

Both conditions must hold: paid-up capital of 5 million baht or less on the last day of the accounting period, and income from sales and services of 30 million baht or less in the period.

## A worked example

An SME with 1,000,000 baht of net profit pays nothing on the first 300,000 baht and 15% on the next 700,000 baht: 105,000 baht. A company that fails either test pays 200,000 baht.

## How AccountsOS helps

Finn checks both SME conditions against your books and registered capital, estimates CIT and tracks P.N.D.50 and P.N.D.51. You or your accountant file and pay.

Source: https://www.rd.go.th/fileadmin/user_upload/lorkhor/newsbanner/2022/CIT_SME.pdf

## Real-world examples

### Small trading company

Paid-up capital 2 million baht, sales 12 million baht, net profit 1 million baht. It qualifies as an SME and pays 105,000 baht.

### Larger company

Paid-up capital 10 million baht. It fails the capital test, so all profit is taxed at 20%.

## Common mistakes to avoid

- Using the SME rates when paid-up capital is over 5 million baht
- Testing capital at the start of the year instead of the last day

## Frequently asked questions

### Is the SME rate automatic?

No. Both conditions must be met for the accounting period.

### Do partnerships pay CIT?

Limited partnerships and registered ordinary partnerships do.

## Practical tips

- Check your paid-up capital before year-end if you are close to 5 million baht.

## Related questions

- [When is the P.N.D.50 corporate tax return due in Thailand?](https://accounts-os.com/th/questions/when-is-pnd50-due-in-thailand)
- [What is P.N.D.51 and how much do I pay?](https://accounts-os.com/th/questions/what-is-pnd51-in-thailand)