The COVID-19 pandemic has left a very slow recovering scar on the economical and financial landscape throughout the world. The Royal Thai Government and the Board of Investment anticipate this pathetic situation and hence have made some investor-friendly announcements recently. Therefore, for your knowledge and information, we will discuss the announcements related to Corporate Income Tax in Thailand in this article.
Corporate Income Tax in Thailand: The New Announcement
The Ministry of Finance of Thailand issued Notifications Nos. 3 and 4 on April 30, 2021, to extend the Corporate Income Tax (“CIT”) returns filing deadline. Moreover, it is also applicable for paying CIT via the Revenue Department’s e-filing system. However, these interventions have been implemented for company owners who have been affected by the new COVID-19 outbreaks.
Firstly, note that the deadline for filing and paying the annual corporate income tax return (PND.50) is now June 30, 2021, which initially was May 31, 2021. Secondly, the extended deadline is also applicable for some report forms and information returns that must be filed.
New Deadlines: Corporate Income Tax Return Filing and Payment in Thailand
1. Limited Companies and other Juristic Partnerships
Eligibility
Limited Companies or Juristic Partnerships whose original deadline for CIT payment and return filing of the accounting period of 2020 was in May 2021 and June 2021.
Applicable Forms:
Form PND.50, PND.55 and the Transfer Pricing Disclosure Form.
Extended Deadline:
June 30, 2021, via e-filing only.
2. Public Companies listed in Stock Exchange in Thailand or Listed Companies
Eligibility
Listed companies whose original date of CIT payment and return filing for the accounting period of 2020 was in May 2021 and June 2021.
Listed companies with postponed Annual General Meeting (AGM) with shareholders for approval of balance sheet and profit and loss accounts from the original date. The original date was set between April 26, 2021, to April 30, 2021.
Applicable Forms
Form PND.50 and Transfer Pricing Disclosure Form.
Extended Deadline
June 30, 2021, via e-filing only.
Moreover, this extension is having an underlying condition. Listed companies willing to extend the CIT payment or return filing date must inform the same to the Director-General of the Revenue Department of Thailand. Additionally, they can communicate the information through the Revenue Department’s website mentioning the original and new AGM date. Above all, companies must do so within May 31, 2021.
Now, this was the Corporate Income Tax payment and return filing pattern special for the businesses suffering due to the COVID-19 pandemic. For your convenience, let us brief you on the normal CIT procedures in Thailand.
Corporate Income Tax in Thailand: Normal Process
What is Corporate Income Tax in Thailand?
Corporate Income Tax (CIT) is a direct tax payable by businesses and associations doing business in Thailand or earning certain types of income in Thailand. For CIT purposes, juristic corporations and associations include, but are not limited to:
- Limited companies;
- Registered ordinary and limited liability partnerships;
- Joint ventures;
- Foundations and associations carrying on revenue-generating business; and
- A branch of a foreign corporation earning from sources within Thailand.
How Corporate Income Tax in Thailand is imposed?
Corporate Income Tax (CIT) is payable on net profits complying with the accounting standards and criteria of Thailand’s Revenue Code. If you are eligible to pay CIT, you should remember the following points:
- Attach an audited financial statement to each return.
- At the end of the eighth month, you should have paid half of your projected annual income tax.
- If a taxpayer fails to pay the total tax, he or she will be fined 20% of the deficit.
On the other hand, the Corporation does not need to pay dividends.
In addition, dividends from Thai firms or foreign companies doing business in Thailand are eligible for tax. Firstly, It counts only half of the dividends earned from another Thai company in its taxable profits. Secondly, it is applicable if the company hold shares for at least three months prior to or after the holding period of receipt of dividends.
Hopefully, this article was able to clear your ambiguities on the current status of Corporate Income Tax payment in Thailand. Additionally, you must remember that a Certified Public Accountant of Thailand must approve all your tax filings. Moreover, all documents and forms produced for CIT payment or filing must be either in Thai or English language.
The Revenue Department of Thailand formulates various rules and regulations for businesses and individuals to follow at the time of payment or return filing of CIT. Therefore, it may not be possible for you to know all. For more details and support in the process, mail at [email protected]
