If you are keen on doing business in Thailand, you need to visit a top accounting service firm based in Thailand. Setting up business in Thailand is relatively easy compared to many other Asian nations in the region. The corporate income tax is paid by almost any company that is set up under the company act or the partnership law of the country. The businesses are subjected to taxes on all sources of income that originate both from within and outside of the country. There are a set of corporate income tax obligations for companies in Thailand that every business owner should know about!
Which Incomes are Taxable under Corporate Income Tax in Thailand?
Corporate income taxes are imposed on all the profits that limited companies, joint ventures, and limited liability partnerships accrue in a financial year. Many foundations and financial service companies, and foreign subsidiaries of multinational corporations also pay the corporate income tax in Thailand. As a taxpayer in Thailand, you should remember the following things:
As a corporate taxpayer, you should be able to post returns with the government on your income. This is mandatory after having issued an audited financial statement. There are set regulations that need to be followed in Thailand.
You also have to pay about 50% of the annual income tax after the end of the 8th month. You have to pay a fine of about 20% of the deficit for failing to pay taxes on time.
Exemptions on Dividends
However, dividends may get some exemptions. A Thai company may remain exempt from taxation on any dividend it receives. Additionally, they should hold at least 25 percent of the total shares in the paying company. Thai companies that are listed on the Thailand Stock Exchange, are not liable to pay taxes on any dividends they receive. These dividends can be from affiliates and parent companies if they comply with certain laws.
Depending on the type of business, these tax obligations for companies in Thailand may vary. For complete support on Corporate Income Tax for your company in Thailand, email us at [email protected]. Our team will get back to you within one Thai working day.
