Revenue Tax SBT

Specific business tax (SBT) is imposed on certain types of businesses whose value added is difficult to define such as banking, finance, credit foncier, life insurance, pawnshops, and real estate. Such businesses are considered to be outside the VAT system and therefore are not subject to VAT (source: the Thailand Revenue Department).

Chapter 5

Specific Business Tax

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Section 91 Specific business tax is an assessment tax.

Revenue Tax: VAT

Value Added Tax (VAT) has been implemented in Thailand since 1992 replacing Business Tax (BT). The VAT is currently imposed at a rate of 7%, with a few exceptions, such as small entrepreneur whose annual turnover is less than 1.8 million baht. A company must register for Value Added Tax if it is expected that its gross income will exceed 1.8 million baht per annum or within 30 days of the date they reach 1,8 million baht in sales (check for possible changes). Companies registered for VAT must file VAT returns and pay tax (if any) to the local district office monthly, within 15 days from the end of the month which the VAT is to be accounted for (source Thailand revenue department).

Chapter 4

Value Added Tax


Part 1

General Provisions

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Section 77 Value added tax is an assessment tax.

Thailand Tax (CIT)

Tax benefits for SME's, the general corporate tax rate on the net profit in Thailand is 30% for companies with a paid up share capital of more than 5 Million Thai Baht. The government has reduced corporate income tax rates to promote specific business sectors and small and medium enterprises. Enterprises qualify as small and medium-sized enterprises (SMEs) if the paid up share capital does not exceed 5 million baht. The tax rate for companies with a paid up share capital not more than 5 Million Thai Baht at the end of its tax year shall be taxed over the net profit at rate of 15% over the first one million Thai Baht profit, 25% over the profit between one million and three million and 30% for profits over three million Thai Baht.

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Thailand Revenue Code

Part III

Corporate Income Tax

Section 65 Taxable income under this Part is net profit which is calculated by deducting income from business or income arising from business carried on in an accounting period with expenses in accordance with conditions prescribed in Section 65 Bis and Section 65 Ter. An accounting period shall be twelve months except in the following cases where it may be less than twelve months:

Thai Income Tax Law

Under section 41 of the Revenue Code an individual Thai citizen or foreigner who lives in Thailand for one or more periods totaling at least 180 days in any tax (calendar) year is, for tax purposes, deemed a resident of Thailand and subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand, and on assessable income derived from foreign sources to the extent that it is brought into Thailand in a year in which income is received. A non-resident individual is subject to tax only on assessable income from Thai sources, regardless of payment location.

Tax Rates and Personal Income (source Thailand Tax Law (official))

Taxable Income Tax Rate Tax Amount Tax Amount Accumulated
150,000 - 500,000 baht 10% 40,000 baht 40,000 baht
500,001 - 1,000,000 baht 20% 100,000 baht 140,000 baht
1,000,001 - 4,000,000 baht 30% 900,000 1,040,000 THB
4,000,001 and more 37%

Thailand approved a new personal income tax structure which slashes the maximum tax rate from 37% to 35%. The new tax rate will take effect in the 2013 tax year (read more).

Chapter 3

Income Tax

Part 1

General Provisions

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Section 38 Income tax is an assessment tax. An assessment official shall make assessment on tax under this Chapter.