By virtue of Section 5, Section 6 and Section 7 of the Revenue Code on Tax Exemption (No. 795) B.E. 2568, the Revenue Department has recently announced the criteria and conditions for exemptions from income tax, Value Added Tax, Specific Business Tax and stamp duty.

These exemptions apply to donations made to the Thai Red Cross Society or approved medical and public health foundations through the electronic donation system effective from 1 January 2025. The initiative is part of an effort to encourage charitable contributions via secure and transparent digital platforms.

Donations may be made in the form of cash, assets, or goods. In the case of donating assets or goods, the following criteria and conditions must be met:

1. Assets Purchased for Donation – if a company or juristic partnership purchases assets specially for donation, there must be supporting evidence of the acquisition of assets indicating the amount and value of such assets. The value indicated in such evidence shall be regarded as the value of the donation expenses.
2. Assets from Asset Register – if a company or juristic partnership donates assets recorded in its assets register, the net book value (i.e. the cost after deducting accumulated depreciation or wear and tear) shall be used as the value of the donation.
3. Donated Goods – if a company or juristic partnership donates goods, whether the goods were manufactured in-house or purchased for resale, the proven cost value of those goods shall be considered the value of the donation. However, such value must not exceed the remaining goods brought forward, in accordance with Section 65 bis (6) of the Revenue Code.
4. Fair Market Value Requirement – the value of assets or goods purchased for donation must not exceed the normal market price, in accordance with Section 65 ter (15) of the Revenue Code.

Furthermore, in accordance with Section 4 of Royal Decree No. 795, the donors who contribute to the Thai Red Cross Society or approved foundations via the electronic donation system may use the system-generated donation records as valid evidence for claiming exemptions from income tax, VAT, Specific Business Tax and stamp duty under Section 4 and 7 of the decree. And those exercising the tax exemption are not required to submit any additional donation documents or evidence to the tax assessment officer.

Donors are advised to contact the Revenue Department for full details regarding eligibility and compliance requirements or consult with Thai tax experts for assistance in filing Thai taxes.

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:

1. 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.

2. 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.

3. 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.
4. Joint ventures

If you want to know more details about Thai taxation and accounting, contact MSNA to set up a consultation.

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.

A targeted business industry covered under the Royal Decree No. 793 B.E. 2568 (2025) is a juristic partnership or corporate entity that has developed, utilizes its innovation and technology for production of goods or services that the Thai government promotes, and contributes to the country’s competitiveness.

Such targeted industries include companies or juristic partnerships operating in sectors defined by the following laws:

• National Competitiveness Enhancement for Targeted Industries Act B.E. 2560
• Investment Promotion Act. B.E. 2520
• Eastern Special Development Zone Act B.E. 2561

For more clarifications about Thai taxes, contact MSNA for consultation.

Starting from 1 October 2025, employers in Thailand have more duties towards their employees.

Employer duties:

• The employers with 10 employees or more must arrange for their employees to be members of the Employee Welfare Fund.
• They have to submit Form SorKorLor.3 listing the employees’ names and other particulars. After the employer has submitted this form, the Department of Labour Protection and Welfare shall issue a certificate of registration (Form SorKorLor.4 or 4/1) to the employer.
• They have to notify the Department of Labour Protection and Welfare if there is any change in the form listing the employees’ names, by using For SorKorLor.3/2 within the 15th of the following month.
• They have to deduct 0.25% from the employee’s compensation of the month and match the same amount with their money. Then submit it to the relevant authority by the 15^th of the following month. Failure to do so will result in a fine of 5% per month on the outstanding amount. The rate will be changed to 0.5% from 1 October 2030 onward.

Employee duties:

• An employee who works for an employer with 10 employees or more must enroll into the Employee Welfare Fund.
• He must pay 0.25% of the compensation he receives in a month into the Fund through being withheld and submitted to the Fund by his employer (The rate will be changed to 0.5% from 1 October 2030 onward.)
• He must report any changes that affects his Fund membership to his employer.
• He must designate the beneficiary who will receive the benefits in case of his death.

Exemptions:

• Employers with fewer than 10 employees
• Employers who provide a provident fund under the Provident Fund Act. However, if some employees do not join the provident fund, the employer has to enroll them into the Employee Welfare Fund.
• Employers who provide assistance to employees in the event of termination of employment or death according to the rules and procedures prescribed by the related Ministerial Regulations.
• Employers exempted by some other laws.

Benefits of the Employee Welfare Fund:   

When the employee’s employment is terminated, the Department of Labour Protection and Welfare shall pay the employee the accumulated contributions, supplementary contributions, and any accrued interest from the Fund. In case of death of the employee, the Department of Labour Protection and Welfare shall pay the fund to his designated beneficiary.

The Thai Cabinet has recently approved the Royal Decree No. 793 B.E. 2568 (2025) which provides substantial tax incentives. This aims to attract highly skilled Thai professionals working abroad to return to Thailand and work in the targeted industries in order to support the economy’s growth by offering personal income tax reductions and corporate tax benefits for individuals and the companies that will employ them.

The personal income tax rate for individuals employed by the targeted industries is reduced to 17% whole companies operating in targeted industries are entitled to 50% corporate income tax exemption on salary expenses paid to qualified employees. This exemption applies to salaries paid from 25 March 2025 (the enforcement date) until 31 December 2029.

To be eligible for reduction and exemption of taxes and duties, the taxpayers must meet the following criteria.

For individuals:

1. Must be of Thai nationality
2. Completed at least a bachelor’s degree
3. Must have a minimum 2 years work experience abroad
4. Must have not previously worked in Thailand during the application year and must not have been a tax resident of Thailand in the past 2 years
5. Must be employed by a company in a targeted industry, entered in Thailand to begin employment between 25 March 2025 and 31 December 2025.
6. Stayed in Thailand for at least 180 days in the tax year which the reduced tax rate is applied, except for the first or final year of eligibility
7. Complied with all conditions set by the Director-General of the Revenue Department

For Employers (Companies or Juristic Partnerships)

1. Must operate in a targeted industry as defined by relevant laws
2. Must notify the Revenue Department before payment of first salary to the eligible individual. The tax reduction will be applied from the notification date
3. Ensure salary expense has not been used for any other tax incentive claims

For personal and corporate income tax filing and more information on Thai tax laws, contact MSNA for further consultation.

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.

MSNA can assist you on how your company can file taxes online. If you are not registered with online tax filing yet, we can register your company with the Revenue Department’s e-filing system.

The RD’s e-filing system offers filing and submission services via the Internet which can be filed by taxpayers and accounting offices like MSNA. The e-filing system can also support the filing of all types of taxes, both regular and additional within the deadline and after the deadline.

The types of taxes that can be filed via e-filing system are as follow: –

• Personal income tax
• Corporate income tax
• Value Added Tax (VAT)
• Specific Business Tax
• Withholding tax
• Revenue Stamp
• Inheritance tax
• Foreign Income Notification Form

Users of e-filing system: –

• Taxpayers in Thailand
• Accountants or service providers, who act as tax agents and submit the tax returns and pay taxes on behalf of the taxpayers or customers

In the case of tax filing at different times:

• Both regular tax returns and additional forms submitted within the filing deadline
• Filing a regular form or additional forms after the filing deadline will incur additional charges, fines and criminal penalties

To ensure you submit your Thai taxes accurately and seamlessly, consult with us now for proper guidance and tax advice.

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.

In the event that a taxpayer was not able to submit and make the tax payment on time, there are penalty and surcharge to be paid upon submission of tax returns. This also applies if a taxpayer who filed the tax returns within the due date but does not pay the full amount of tax, or file the form late, neglected or avoided filing the tax return, he/she must pay additional fees and fines as prescribed by law. If he/she fails to pay, there might be criminal penalties as follows:

1. In case of failure to pay tax within the due date, additional surcharge of 1.5% of tax amount per month of the tax due and it must be paid within the specified time.
2. In case of filing the tax return on time but the tax amount was not paid correctly, there is a fine of 1 or twice the amount of the tax due, as the case may be. Such fine maybe reduced or exempted in accordance with the regulations prescribed by the Director-General with the approval of the Minister.
3. In the case of intentionally reporting false information or presenting false or fraudulent evidence to evade or attempt to avoid paying taxes, the penalty is imprisonment from 3 months to 7 years and a fine from THB 2,000 to THB 200,000.
4. In the case of intentional negligence in submitting a tax return in order to avoid paying taxes, there is a fine of not exceeding THB 200,000 or imprisonment not exceeding 1 year, or both.

Know more about your duties as a taxpayer in Thailand and make sure you submit your taxes correctly and on time to avoid the above consequences. Contact MSNA for getting tax ID, preparing and filing tax returns and tax consultation.