Tax
20 percent corporate rate, progressive personal rates to 35 percent, 7 percent VAT
The Revenue Code sets a 20 percent corporate rate with reduced rates for small companies, personal rates to 35 percent, and VAT at 7 percent under a rate reduction repeatedly extended from the statutory 10 percent.
Key rules
- Jurisdiction — The Revenue Department administers income tax and VAT; local authorities collect land and building tax. BOI promotion can grant corporate tax holidays of up to thirteen years.
Governing law
- Revenue Code B.E. 24811938
- Petroleum Income Tax Act B.E. 25141971
- Land and Building Tax Act B.E. 25622019
In practice
Tax residence for individuals is 180 days in a calendar year. A significant change took effect in 2024: residents are now taxed on foreign-source income remitted in any later year, ending the practice of deferring remittance to the following tax year to escape Thai tax. Companies incorporated in Thailand are taxed on worldwide income, foreign companies on Thai-source income including through a permanent establishment. Withholding taxes apply broadly to domestic service payments, which surprises new entrants. Land and building tax replaced the old house and land tax in 2020 with rates by use class and generous residential thresholds.