At present, the Corporate Income Tax (CIT) rate is 23% for accounting periods beginning between 1 January and 31 December 2012. For accounting periods beginning between 1 January 2013 and 31 December 2014, CIT rate is 20%.
The CIT rates for small and medium enterprises (SMEs) are as follows:
i. For accounting periods beginning between 1 January and 31 December 2012:
Net profit (THB) CIT rate
0 – 150,000 -0-
150,000 – 1,000,000 15%
Over 1,000,000 23%
ii. For accounting periods beginning on or after 1 January 2013:
Net profit (THB) CIT rate
0 – 150,000 -0-
150,000 – 1,000,000 15%
Over 1,000,000 20%
In order to be eligible for the reduced tax rates, the SMEs must meet the following conditions effective from the accounting period which begins on or after 1 January 2012:
(1) The paid-up capital on the last day of any accounting period must not exceed THB 5 million;
(2) The income from the sale of goods and provision of services must not exceed THB 30 million in any accounting period.
On the other hand, banks are subject to CIT at the rate of 10% in respect of profits derived from lending to non-Thai residents from foreign currency funds obtained from non-Thai sources.
Contact MSNA for your Thai accounting and taxation questions.