CIT rates, SME thresholds, mid-year returns and annual filing deadlines for companies in Thailand.
Corporate Income Tax (CIT) is paid by partnerships and companies incorporated in Thailand as well as by foreign companies carrying on business in Thailand or deriving income from Thailand such as dividends, service fees or interest payments.
The standard CIT rate is 20% of net profit. However, companies qualifying as Small and Medium-sized Enterprises (SME) benefit from reduced rates:
SME conditions: Paid-up capital ≤ ฿5 million AND revenues ≤ ฿30 million per fiscal year.
| Net Profit (SME) | CIT Rate |
|---|---|
| Up to ฿300,000 | 0% |
| ฿300,001 – ฿3,000,000 | 15% |
| Above ฿3,000,000 | 20% |
Net profit is calculated as total revenues less total deductible expenses. Non-deductible expenses include: expenses without supporting documents, personal expenses and gifts, VAT (when VAT-registered), CIT itself, fines and penalties, and fictitious expenses.
Companies must submit a mid-year CIT return (PND 51) based on their estimated net profit for the full year. The mid-year tax paid is used as a credit against the annual CIT due. The PND 51 must be submitted within 2 months from the end of the first 6 months of the fiscal year.
Estimated annual net profit: ฿5,000,000
Mid-year taxable base: ฿5,000,000 ÷ 2 = ฿2,500,000
Mid-year CIT due (20%): ฿500,000
Filing deadline: 31 August
The annual CIT return (PND 50) must be submitted within 150 days from the fiscal year end date. When filed online, an additional 8 days are granted.
If the company underestimates its year-end profit by 25% or more in PND 51, an additional penalty of 20% of the underestimated tax applies.
BizStep prepares and submits both your PND 51 and PND 50 returns as part of our all-inclusive accounting plans.
Talk to us about your accounting needs in Thailand.