The Thai Cabinet has recently approved the following incentives in corporate income
tax rates in order to boost Thailand’s competitiveness:

1. Incentives in general

For companies or juristic partnerships the applicable corporate income tax rates
will be reduced from 30% to:

– 23% for the accounting period ending on or after 31 December 2012

– 20% for the accounting periods commencing on or after 1 January 2013

For small and medium enterprises (SMEs) with paid-up capital of not exceeding Baht 5 million on the last day of the accounting period and income of not exceeding Baht 30 million from sales of goods or services during the accounting period, the
applicable corporate income tax rates are as follows:

– The first Baht 150,000 of net profit is exempted from tax.

– 15% for the portion of net profit exceeding Baht 150,000 and up to Baht 1,000,000 for accounting periods commencing on or after 1 January 2012

– 23% for the portion of net profit exceeding Baht 1,000,000 for the accounting
period ending on or after 31 December 2012

– 20% for the portion of net profit exceeding Baht 1,000,000 for accounting periods commencing on or after 1 January 2013

If paid-up capital exceeds Baht 5 million or income from sales of goods or services
exceeds Baht 30 million, the normal corporate income tax rates will be applied.

2. Incentives for Listed Companies

2.1 For entities listed on the Stock Exchange of Thailand within 31 December 2009
which are entitled to 25% corporate income tax rate, the applicable corporate
income tax rates are:

– 23% for the accounting period ending on or after 31 December 2012

– 20% for the accounting periods commencing on or after 1 January 2013

2.2 For entities listed on the Market for Alternative Investment (MAI) except for
those which are still entitled to 20% corporate income tax rate until the
accounting period ending 31 December 2011, the applicable corporate income tax
rates are:

– 25% on the first Baht 50 million of net profit for accounting periods ending on
or after 31 December 2011.

Eventually, the Cabinet’s resolution does not apply on the applicable tax rates on the sum over Baht 50 million for accounting period ending on or after 31 December 2011.
However, it can be presumed the normal 30% corporate income tax rate should
apply to the sum over Baht 50 million and the reduced tax rates as applicable
to other cases should also apply going forward as follows:

– 23% for the accounting period ending on or after 31 December 2012

– 20% for accounting periods commencing on or after 1 January 2013

Contact MSNA, Thai accounting company, for your Thai tax and accounting questions.