Corporate income tax (CIT) in Thailand is paid by companies and partnerships that earns from sources within and outside the country.
Now, a juristic company for income tax purposes includes, but not limited to;
- Limited companies
- Registered ordinary and limited liability partnerships
- Joint ventures
- Foreign corporation branch earning in Thailand
- Foundations and associations
Generally, CIT is imposed on the net profits according to the recognized accounting principles and conditions stated in the Revenue Code of Thailand. However, you must also keep the following in mind;
- Return must be attached with the audited financial statement.
- An amount of 20% of the deficit will be fined if the taxpayer fails to pay the tax on time.
- By the end of the 8thmonth, 50% of the annual income tax must be paid.
For your information, corporate do receive an exemption on dividends;
- Dividends received by both local companies and foreign companies are taxable as any other ordinary income. It must include one-half of the dividends in the taxable income, provided the shares are there for at least 3 months before and after getting the dividends’ receipt.
- If a company in Thailand holds 25% shares with voting rights, then that company can be exempted from taxation on the dividends received from any other Thai company.
- Companies listed on the Stock Exchange in Thailand are also exempted from the taxation on all the dividends, if they comply with the decided holding period.
However, if you fail to file tax, then you are subjected to penalties where you need to pay out twice the amount of the tax due. The same may be applicable for filing false return or not providing adequate details.
The annual income tax return must be filed within 150 days after each accounting period including audited financial statements.
