Thailand Company Tax Details

Thailand Company Annual Tax Explanation (2025 Edition): Compliance Obligations Business Owners Must Know

Key words: Thailand corporate tax, Thailand corporate income tax, Thailand VAT, Thailand withholding tax, Thailand annual audit, Thailand tax declaration

Meta description: PSO Accounting and Law Firm explains the annual taxes that Thai companies must pay, including corporate income tax, value-added tax, withholding tax, and social security. We provide professional tax planning and compliance reporting services to help your company reduce costs and increase efficiency.

Introduction: For businesses operating in Thailand, tax compliance is the cornerstone of stable development

For companies operating in Thailand, a clear understanding and fulfillment of annual tax obligations is not only a legal requirement, but also key to healthy business management and risk avoidance. Thailand's tax system is complex and often confusing for business owners.

PSO Accounting Law Firm, with a professional team of experienced Thai lawyers and certified public accountants, will systematically sort out the major taxes and reporting requirements that Thai companies face each year, helping you achieve tax compliance and operate with peace of mind.

1. Major direct taxes: directly related to corporate profits and revenue

1. Corporate income tax This is the company's main tax burden and is calculated based on net profit .

• Taxpayers: Limited companies (including joint ventures and public limited companies), branches of foreign-invested companies, representative offices, etc. registered in Thailand.

• tax rate:

  • General tax rates: 20% . This is the tax rate applicable to the vast majority of small and medium-sized enterprises.

  • Preferential tax rates for small and medium-sized enterprises: To support small and medium-sized enterprises, the Thai Tax Bureau has set up tiered preferential policies (the specific tax rates may be slightly adjusted every year, please refer to the latest regulations).

  • Specific industry incentives: Companies that receive incentives from the Thailand Board of Investment may enjoy tax reductions and exemptions of 0%, 5%, or 10%.

• Application time:

  • Interim declaration: payable within two months after the end of the first six months of the fiscal year (usually by the end of August), calculated at 50% of the estimated profit.

  • Annual Return: Final return and payment must be made within 150 after the end of the fiscal year , based on the audited financial statements. For example, a company with a fiscal year ending on December 31st must complete the return by the end of May of the following year.

2. Withholding tax This is a very important concept. As the "payer", the company is obliged to withhold taxes in advance when paying others.

• Applicable scenarios and tax rates (common):

  • Payments of service fees or commissions to individuals or unregistered partnerships: 3% withholding .

  • Rent payment: 5% withheld .

  • Dividend payments: 10% is usually withheld .

  • Payments to employees: Withholding according to a progressive tax rate schedule.

• Filing time: Must be reported to and paid to the tax bureau within 7 of the following month (for example, January withholding tax must be reported before February 7).

II. Major indirect taxes: related to goods and services

1. Value Added Tax This is a tax levied on the sale of goods or provision of services in Thailand.

• Standard rate: 7% .

• Collection method:

  • Output VAT: When you collect payment from your customers, you will be charged an additional 7% VAT.

  • Input VAT: When you pay your suppliers, you pay them 7% VAT.

  • Actual amount paid = output VAT - input VAT .

• Registration threshold: Annual turnover exceeding THB 1,800,000 requires VAT registration.

• Application time: Once a month , declare and pay within the 15th of the following month (for example, January's VAT must be paid before February 15th).

2. Specific business taxes apply to certain industries, such as banking, finance, securities, insurance, and real estate sales with annual turnover exceeding 180 million baht . Tax rates generally range from 3% to 10%. Most general trading or service companies are not subject to this tax.

3. Other important taxes, fees and responsibilities

1. Social Insurance Fund

• Payers: Both employers and employees need to pay.

• Rate: 5% of the total monthly salary (according to the 2024 standard, employers and employees each bear 2.5%, and the government subsidizes another 0.5%), but there is a maximum contribution base cap.

• Application deadline: within the 15th of the following month .

2. Stamp Duty

• It is levied on certain legal documents and actions, such as loan contracts, lease agreements, etc. The tax rate varies depending on the type of document (e.g. 0.1%). Many commercial transactions are now exempt from tax.

3. Tariffs

• It is levied on imported and exported goods, and the tax rate depends on the type of goods and their place of origin.

IV. Annual Compliance Core: Financial Statements and Audits

• Statutory Audit Requirements: Almost all Thai limited companies are required to have their financial statements audited by a Thai registered auditor at the end of each fiscal year .

• Annual report submission: Audited financial statements must be submitted to the Ministry of Commerce within 4 months after the end of the fiscal year .

• PSO Special Note: Our integrated accounting and legal services can seamlessly connect audits and tax filings, ensuring data consistency and avoiding tax risks caused by accounting issues.

Why choose PSO to handle your Thailand company taxes?

• We integrate business, finance, and law: We are not only accountants, but also lawyers who are well-versed in Thailand's Tax Code. We can provide you with optimal tax planning solutions from three perspectives: business, finance, and law , rather than just mechanical filing.

• Precise risk avoidance: We are well-versed in the audit priorities of the Thai Revenue Department and can help you standardize your accounting, achieve reasonable tax savings while complying with regulations, and avoid hefty fines and late payment fees.

• Seamless trilingual communication: Complex tax issues are clearly explained to you by our Chinese, English and Thai team, ensuring you fully understand your tax situation.

• One-stop service: From monthly bookkeeping and VAT filing to annual audits and corporate income tax settlement, we provide full-process outsourcing services, allowing you to focus on your core business.

Conclusion: Tax compliance in Thailand is an ongoing and professional endeavor. A good tax partner can not only help you maintain compliance but also create value for your business.

Contact PSO Accounting Law Firm today for professional tax health checks and planning advice! Let us be your most trusted financial and tax legal advisor in Thailand.