Taxes & VAT in Thailand

What you need to know

A business's Thai tax position depends on its legal form, activities, turnover, payments, cross-border dealings and any available promotion or exemption. Incorporation does not give every business the same obligations. Start by confirming the taxpayer registration, accounting period and taxes that apply to each revenue stream and payment type.

Corporate income tax is generally charged at 20% of net profit, although reduced rates, exemptions and special regimes can apply. Companies normally submit the annual P.N.D.50 return within 150 days after the accounting period closes and make a mid-year payment using P.N.D.51 within two months after the first six months. A business making certain payments may also need to deduct and remit withholding tax; the correct rate depends on the payment, recipient and any applicable tax treaty.

VAT is a separate tax on taxable supplies. Registration is generally required when annual taxable turnover exceeds THB 1.8 million, but exemptions and activity-specific rules matter. The effective VAT rate is 7% through 30 September 2027 under Royal Decree No. 807. A VAT registrant normally issues compliant tax invoices, records output and input tax, and files P.P.30 for each tax month by the 15th of the following month, including months without sales unless a specific rule provides otherwise.

Before trading, map expected revenue and payments, confirm VAT and withholding obligations, set a filing calendar, and establish invoice and evidence controls with a qualified Thai accountant or tax adviser. Cross-border services, foreign recipients, promoted businesses and transactions subject to specific business tax need individual review. Rates, concessions and electronic-filing extensions can change, so verify the current Revenue Department position before acting.