Juristic companies and partnerships doing business or deriving certain types of income in Thailand are liable for Corporate Income Tax (CIT). Juristic company or partnership means a limited company, a limited partnership or a registered ordinary partnership incorporated under Thai or foreign law. The term aslo includes associations and foundations engaging in a business that producees revenue, joint ventures, and foreign governments that carry out trade in Thailand.

CIT is levied on both Thai and foreign companies. A Thai company is subject to tax on its worldwide profit at the end of each twelve month accounting period. A foreign company carrying out business in Thailand is subject to CIT only for net arising from or in consequence of business carried on in Thailand. However, a foreign company engaged in international transport is subject to CIT on its gross receipts.

CIT is calculated from a company's net profit on the accrual basis, taking into account all revenue arising from or in consequence of the business carried on and deducting all expenses permitted under the Revenue Code. Expenses include depreciation of capital goods, wear and tear, bad debts, charitable donations, and net losses, as well as normal operating expenses.

The standard CIT rate is 30%. However, the rate at which CIT is levied varies according to the legal status of the enterprise. Private limited companies incorporated in Thailand with share capital of less than B5 million pay under a scheme to promote small and medium sized companies, with the rates being 20% for the first B1 million net profit, 25% for B1 million to B3 million, and 30% for net profit exceeding B3 million. Other exceptions include companies listed on the Stock Exchange of Thailand, who pay 25%, and associations and foundations, who pay either 2% and 10%, depending on their circumstances.

Annual CIT returns are due within 150 days of the end of the company's annual accounting period. In addition, a financial statement and Audit Report must be submitted to the Ministry of Commerce by the 31st of May of each year. Returns must comply and be made using Form CIT 50 and must be prepared by a licenced accountant and audited by a registered auditor. Our fully licenced accountants have many years of experience in filing CIT returns, as well as providing consultancy in the areas of tax planning and efficency. Contact us for a free consultation with one of our client managers.