Thailand’s Tax System: A Brief Overview for Foreign Businesses update 2025
Thailand offers a conducive business environment, attracting numerous foreign investors.
This brief overview provides a basic understanding of Thailand’s tax landscape, specifically targeting foreign businesses.
by onesiri audit group : value added auditor in bangkok auditor in bangkok
Key Taxes for Foreign Businesses
Corporate Income Tax:
All companies registered in Thailand, including foreign-owned entities, are subject to corporate income tax.
The standard corporate income tax rate is 20%.
BUT*** If your revneue is below 30MB per year and the registered captital belows 5MB = Tax rate will be lower to about 15% as SME support tac system in Thailand.
Tax incentives and exemptions may be available for certain industries and activities. Need to be discussed case by case with my team.
Personal Income Tax:
Foreign individuals working in Thailand are generally subject to personal income tax on their Thai-sourced income.
The tax rate varies based on the individual’s income level from 5% to 35%,
Value-Added Tax (VAT):
VAT is imposed on most goods and services sold in Thailand at a standard rate of 7%.
Foreign businesses engaged in taxable activities in Thailand are required to register for VAT.
But the VAT system has some goods that be exemp such as book/ animal medicine and some services like rental charge etc.
Withholding Tax:
Withholding tax is applied to various types of payments made to non-residents, such as dividends, interest, and royalties.
The rates vary depending on the type of payment and the recipient’s country of residence.
Other Relevant Taxes:
Specific Business Taxes: Certain businesses may be subject to specific taxes, such as excise tax on specific goods or business tax on specific services.
Withholding Tax on Services: Payments made to foreign service providers may be subject to withholding tax.
Seeking Professional auditor in bangkok
Navigating Thailand’s tax system can be complex, especially for foreign businesses.
It is highly recommended to consult with a Bangkok-based auditor or tax advisor to ensure compliance with all tax obligations and to take advantage of any available tax benefits.
Benefits of Hiring us : Onesiri Audit Group
Compliance: A qualified auditor can help ensure that your business complies with all relevant tax laws and regulations.
Tax Planning: An auditor can provide tailored tax planning advice to minimize your tax liability.
Audit Representation: In case of a tax audit, an auditor can represent your business and provide necessary support.
Please contact us and schedule the meeting to flow your business plan here in Thailand.
email : admin@onesiri-acc.com
Our Location : 644 Tower B The Tree Interchange Bangsue/ Bangkok Thailand
