In Thailand, there are some entities that are exempted from corporate income tax while there are legal entities that are liable to pay corporate income tax on net income:
- A company or juristic partnership established under Thai law:
- Limited Company
- Public Limited Company
- Limited Partnership
- Registered General Partnership
In the case where a juristic partnership established under Thai law has branches, whether it is in or outside Thailand, the net profit of the branch must be included with the net profit of the head office in order to pay corporate income tax in Thailand.
- A company or juristic partnership established under foreign laws.
Companies or juristic partnerships established under foreign laws and liable to pay corporate income tax in Thailand include:
a) A company or juristic partnership established under the laws of a foreign country and carrying on business in other places and in Thailand, including companies or juristic partnerships established under the laws of such foreign countries are required to pay corporate income tax only on net profits derived from business operations in Thailand.
b) A company or juristic partnership established under foreign law has employees or representatives or contacts in carrying out business in Thailand, which results in income or profits being received in Thailand. Such person, whether a natural person or a juristic person, who hires such employees, representative or contacts, shall be deemed to be a representative of the company or juristic partnership established under foreign law and such person shall have the duty and responsibility to file a return and pay income tax only in relation to such income or profits.
- Businesses which are carried out for trade or profit by a foreign government, a foreign government organization or other juristic person established under the laws of a foreign country.
- Joint ventures
If you want to know more details about Thai taxation and accounting, contact MSNA to set up a consultation.