Normally, the entities that are only established under Thai law such as ministries, government departments, organizations or cooperatives are not required to pay corporate income tax.

However, there are also some types of juristic persons that are subject to corporate income tax under the Revenue Code but are exempted to pay tax under the provisions of various laws as below:

1. A company or juristic partnership under obligations under an economic or technical cooperation agreement between the Thai government and a foreign government.
2. A limited company that is exempted from corporate income tax under the Investment Promotion Act. This includes a company that has obtained the BOI promotion and has been granted with tax incentives.
3. Limited companies or juristic persons having the same status as limited companies established under Thai law or foreign law are exempted from corporate income tax under the Petroleum Income Tax Act.
4. A company or juristic partnership located in a country that has a double taxation agreement with Thailand, under the conditions specified in the DTA.

Thai taxation has a unique structure therefore; it is highly recommended to consult with the Thai tax experts like us. Contact MSNA for the best Thai tax advice.

For companies engaged in service business, one must remember how to prepare the invoice, tax invoice and receipt properly.

1. The invoice, receipt/tax invoice should have a letterhead showing the full official name of the company, its registered address, tax ID number (not to be confused with VAT number) and the word “Headquarters” in case it is issued by the headquarters. For some companies with branch offices, they will put “Branch no. XX” if that certain branch office issues the documents.
2. Followed the letterhead, it should be the name of the document (i.e. “INVOICE” or “RECEIPT” or “TAX INVOICE” or “RECEIPT/TAX INVOICE”.
3. The invoice, tax invoice and receipt should have 3 separate sets of running sequence. Sometimes, you invoice your clients and they never pay you, or they pay 3 invoices in one payment, so you issue only one receipt and tax invoice. Sometimes, you also issue an invoice for reimbursement of expenses that may not have VAT in there so when you get paid, you will issue only a receipt but not a tax invoice. The sequence of each kind of documents cannot skip a number. You cannot have 1,2,3,5 and 4 is missing. In the event that you have to cancel an invoice, it is highly recommended to consult with your accountant like us. We suggest you use the following sets of running numbers:

• a) Invoice No.: I250501 where it means Invoice, 25 is the year 2025, 05 is the month of May and 01 is the sequence of the invoice (this indicates how many invoices you have issued so far during May 2025).
• b) Tax Invoice No.: T250501 where T means Tax Invoice, 25 is the year 2025, 05 is the month of May and 01 is the sequence of the invoice.
• c) Receipt No.: R250501 where R means Receipt, 25 is the year 2025, 05 is the month of May and 01 is the sequence of the invoice.

4. Each kind of document should have 1 original and 2 or 3 copies. The original goes to the client, one copy goes to your accountant and you keep 1-2 copies. Some of your clients, specially if they are bigger companies, they prefer to have one original and at least one copy. Thus, the first page of the invoice or tax invoice/receipt should bear the word “INVOICE” (or TAX INVOICE or RECEIPT). The 2nd, 3rd and 4th should bear the name of the document and the word COPY (e.g. INVOICE (COPY).

Normally, when you invoice your clients for your services or deposits, you give them an invoice only. This is because you are a service business so you do not need to issue a Tax Invoice until you get paid. So, some companies combine their receipt and tax invoice into one document which they issue when they get paid (RECEIPT/TAX INVOICE).

Contact MSNA for further assistance in accounting, tax filing and expert advice on Thai taxation.

The Thai government is introducing the new digital system Thailand Digital Arrival Card (TDAC) which aims to provide convenience for all foreigners entering Thailand by air, land or sea. TDAC, which is developed to replace the traditional paper-based TM6 arrival card will be implemented starting 1 May 2025. The TDAC system offers the following convenience:-

• Faster immigration processing upon arrival
• Reduced paperwork and administrative burden
• Ability to update information before travel
• Enhanced data accuracy and security
• Improved tracking capabilities for public health purposes
• More sustainable and environmentally friendly approach
• Integration with other systems for a smoother travel experience

Foreigners must submit TDAC information within 3 days before arriving in Thailand, including the date of arrival. This applies to all foreigners entering Thailand except for the following:

• Foreigners transiting or transferring in Thailand without going through Immigration control
• Foreigners entering Thailand using a Border Pass

To submit the TDAC, foreigners can access the Immigration Bureau website http://tdac.immigration.go.th or use the Thailand Pass mobile application. The process involves providing personal information, travel details and accommodation information. Once completed, travelers receive a QR code that must be presented to the Immigration officials upon arrival in Thailand, making the entry process more efficient and reducing physical contact at the border checkpoints.

The TDAC system offers two submission options:

1. Individual submission – for solo travelers
2. Group submission – for families or groups traveling together

The system allows the traveler to update most of the submitted information any time before his/her arrival in Thailand by revisiting the TDAC website and log in using the reference number and other identifying information. However, some key personal identifiers cannot be changed, if needed, the traveler may need to submit a new TDAC application.

Moreover, as part of the TDAC, foreigners must also complete a health declaration, as authorized by the Ministry of Public Health of Thailand.

Contact MSNA for more updates and information about doing business in Thailand, company registration process, visa &work permits, and accounting & payroll services.

Corporate Income Tax is a direct tax imposed juristic companies or partnerships doing business in Thailand or those that do not do business in Thailand but getting certain types of income from Thailand.

Who are liable for Corporate Income Tax?

The taxable person are as follow:-

1. A company or juristic partnership incorporated under Thai law:
   • Limited company
   • Public company limited
   • Limited partnership
   • Registered partnership
2. A company or juristic partnership incorporated under foreign laws:
   • a company or juristic partnership incorporated under foreign laws and carrying on business in Thailand
   • a company or juristic partnership incorporated under foreign laws and carrying on business in other places including Thailand
   • a company or juristic partnership incorporated under foreign laws and carrying on business in other places including Thailand, in case of carriage of goods or passengers
   • a company or juristic partnership incorporated under foreign laws which has an employee, an agent or a go-between for carrying on business in Thailand and as a result receives income or profits in Thailand
   • a company or juristic partnership incorporated under foreign laws and not carrying on business in Thailand but receiving assessable income under Section 40(2)(3)(4)(5) or (6) which is paid from or in Thailand
3. A business operating in a commercial or profitable manner by a foreign government, organization of a foreign government or any other juristic person established under a foreign law.
4. Joint venture
5. A foundation or association carrying on revenue generating business, but does not include the foundation or association as prescribed by the Minister in accordance with Section 47 (7) (b) under Revenue Code

MSNA group of companies can assist in accounting & tax, audit and filing of the audited financial statements and corporate income tax returns with the Department of Business Development and Revenue Department. We can also help in registering the company with online tax filing system.

Section 3 of the Revenue Code states that a taxpayer in Thailand shall obtain and use a taxpayer identification number (TIN).

Currently, a taxpayer identification number is issued but the Revenue Department and comprises of 13 digits. For Thai nationals, they can use their Thai ID card number as same as their TIN.

In Thailand, the following persons need to apply for TIN:

1. A person who has the duty to submit personal income tax
2. An individual who wishes to become a Value Added Tax (VAT) or Specific Business Tax (SBT) registrant
3. A juristic person that has the duty to submit corporate income tax such as branch office and branch office. Limited companies can use their company registration number as their tax identification number
4. A payer of income liable to withhold tax

You can apply for a taxpayer identification number at the nearest office of Revenue Department in your area. MSNA can also assist in getting tax ID cards, preparing and filing personal or corporate income tax returns for foreigners and companies in Thailand.

As a taxpayer in Thailand, there are certain duties to be complied as follows:-

1. To register for tax identification number (in case of a foreigner) and must also inform the Revenue Department officers of any changes in his personal details. For Thai nationals, their Thai identification number serves as their tax identification number
2. Submit the tax returns and pay proper tax to the Revenue Department
3. Provide relevant documents and accounts as the law requires. This includes receipt, profit and loss statement, balance sheet, special account, etc.
4. Cooperate and assist the Revenue Department officers and provide additional documents or information when required as well as comply with the summon
5. Pay tax as assessed by the Revenue Department officers on time. In case a taxpayer fails to pay a complete sum, the assessment officer has the right to seize, attach and sell that asset by auction even without a court decision. Cash raised from the transaction will be used to pay off tax arrears.

Any taxpayer who does not comply with the law will face civil and criminal action. Hence, it’s highly advisable to contact Thai tax experts like MSNA to consult about filing your taxes in Thailand.

We got asked a lot of times about the difference between being a tax resident and a non-tax resident in Thailand when filing the Thai personal income tax returns.

Taxpayers in Thailand are classified into resident and non-resident. A tax resident is any person living in Thailand for a period of more than 180 days in any tax calendar year. A tax resident of Thailand has the duty to pay tax on income from sources in Thailand as well as on the portion of income from foreign sources that is brought into Thailand.

However, there are cases where foreign-based income is not subject to Thailand taxes even if the taxpayer is a tax resident of Thailand.

A non-tax resident on the other hand means any person not living in Thailand but has income from sources in Thailand. He/she has the duty to pay tax only on income sourced in Thailand.

Contact MSNA for assistance in filing your Thai personal income tax returns in Thailand.

For real estate properties in Thailand, the Department of Lands has set its criteria for payment of Specific Business Tax as follows:

1. The term “sale” for specific business tax collection includes agreements to sell, sales with buy-back, exchanges, gifts, hire-purchase agreements, or transfers, with or without compensation.
2. The following types of registered real estate transactions are considered as sales for commercial or profit-making purposes and are subject to specific business tax:
   1) Sale of real estate by those with a license for land allocation under land allocation control laws.
   2) Sale of condominium units by business operators who registered the building in accordance with the Condominium Act.
   3) Sale of buildings constructed for sale, including the land on which such building stands.
   4) Sale of real estate that does not fall under (1), (2), or (3), specifically in cases where it is divided or separated for sale for making roads or other public utilities or promise to provide such things.
   5) Sale of real estate held by corporations or juristic persons for business purposes as per Section 77/1 of the Revenue Code.
   6) Sale of real estate not covered under (1), (2), (3), (4) or (5) if the sale occurs within five years from the date of acquisition of such real estate.
3. Registration of sale of real estate that is not subject to specific business tax is as follows:
   a. Sale not covered under item 2 and occurring more than five years from the acquisition date of the real estate.
   b. Sale or expropriations under real estate expropriation laws.
   c. Sale of inherited real estate.
   d. Sales of real estate used as the primary residence, with the seller listed on the house registration for at least one year before the sale. If land and building were acquired at different times, the five-year period applies to the latest acquisition. For instance, if foreigners have their names in the yellow house registration book for more than one year, they will not need to pay the 3.3% specific business tax, similar to Thai people)
   e. Transfer of ownership or possession of real estate to biological children (excluding adopted children) without compensation.
   f. Inherited property transfers to legal heirs or will beneficiaries who are legal heirs.
   g. Transfer of ownership or possession of real estate to government agencies or government organizations without compensation as per Section 2 of the Revenue Code.
   h. Exchange of ownership or possession of real estate with government agencies or organizations under Section 2 of the Revenue Code, where no compensation other than real estate exchange is given.
4. Sellers of real estate are required to pay specific business tax at a rate of 3.3% based on either the appraised property value for registration fee purposes under the Land Code or the actual sale price, whichever is higher.

MSNA group of companies can assist you in property acquisition and taxation matters. Contact MSNA for your tax concerns and Thai Lawyers for buying properties in Thailand.

The government has recently issued a Ministerial Regulation to amend the assessable income tax rates that are exempt from being included in the computation of income tax for severance pay received by employees under the Labor Protection Act in consideration of rising inflation rates and the general consumer price index, which will alleviate the income tax burden for employees who have been laid off.

The Ministerial Regulations no. 394 (B.E. 2567) issued under the Revenue Code on Tax Exemptions was published in the Royal Gazette on July 17, 2024 shall apply to assessable income received from 1 January 2023 and onwards. The compensation received by an employee under the Labor Protection Act, but does not include compensation received by an employee due to retirement or termination of employment contract. This shall include compensation not exceeding the wages for the last 400 days of employment, but not exceeding Baht 600,000.

Need help with your personal income tax filing in Thailand? Contact MSNA for further assistance.

Recently, we registered a company engaged in export business. They asked us how they can claim back the VAT that they will pay. This is our answer.

Once the company is registered in the VAT system and you buy anything, please always remember to ask the vendors to issue a Tax Invoice in the company name with the correct address. 

At month end, your accountant will gather all the tax invoices issued by your vendors and make an input VAT report and the accountant will also gather all your tax invoices that you issued to make an output VAT report. Then the difference of the VAT amounts (the input VAT in excess of the output VAT) will be claimed back from the Revenue Department through these methods:

1. You roll forward the excess VAT amount to the following months until you have a big enough amount then you click to claim the big amount at once.

2. You click to claim back the excess VAT amount every month.

Note that the Revenue Department will ask for so many documents to make sure that all the VAT you claim back is legitimate, so we suggest not to claim back every month. Some companies do it every quarter of every half year. You can engage MSNA group to do your accounting and tax filing. We can also meet with the Revenue Department on your behalf, if necessary. However, we cannot help to speed up the VAT refund process.