All thanks to the strong momentum in Thai tourism and manufacturing exports, the country’s economic outlook is improving. It is found that the economy grew at the fastest pace since 2013. And it is expected that the pace will continue this year and the next. But increasing public investment such as fiscal spending on large-scale infrastructure projects is likely to be critical to driving domestic demand while making economic growth more broad-based. However, this could be why the country has been tweaking laws in order to stem tax leakages and promote its tax takings.
This included a move to introduce taxes on the online business and need foreign businesses to pay Value Added Tax (VAT) on goods that are sold to the Thai consumers. Aside, changes made to tax rates, the country also wishes to use data analytics and AI (Artificial Intelligence) to remove the tax evaders while boosting tax revenues.
The major tax rates are mentioned below;
Corporate tax at 20% standard rate
This is a standard CIT rate applied to the majority of the companies operating in Thailand. It is imposed on the net taxable profits; passive income, capital gains or losses, and business or trading income minus the expenditure incurred while generating these profits.
Thai companies (resident) are subjected to CIT on their global income. The non-resident companies and branches of foreign corporations are related to Thai tax only based on their Thailand-source income.
Reduced rates for small and medium enterprises (SMEs)
Locally-established small and medium enterprises with a paid-up capital of not more than five million Thai baht and revenue of not more than thirty million baht a year come across a set of corporate income tax rates of 0%, 15%, or 20%, based on the profitability.
Under the International Headquarters and International Trade Center, the country grants privileges like a 15-year corporate income tax exemption, a specific business tax exemption, and a personal income tax reduction to a flat fee.
