If you want to incorporate in Thailand, you have to know about taxation for a Co. Ltd. which is the most common company type in Thailand.
Thailand taxes corporate income on a worldwide basis. The usual tax rate for offshore income remitted back, from our research, and this is not personal tax advice, is 20%. Foreign branch income and foreign subsidiary profits are taxable when received, with certain exemptions. The headline corporate income tax rate is 20%. This ranks Thailand as 70th overall with regards to corporate tax rate worldwide. SME may be subject to a lower progressive rates, provided that paid-in capital and net taxable profits do not exceed certain amounts. Entities approved by the Board of Investment may have tax holidays up to 8 years. Companies under The International Headquartes (IHQ) and International Trade Center (ITC) regimes may be exempted from CIT up to 15 years, among other tax incentives.
The VAT standard rate in Thailand is 10.00%, reduced at 7.00% until September 2017. That ranks the country as 37th overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 5% to the equivalent of a social security fund and an employee will contribute 5%.
Thin capitalization rules aren't officially enacted. This refers to any type of requirements on companies' debt-to-asset ratios.
Dividends received are included in corporate tax base. Dividends received from a Thai listed company are exempt from tax. Those received from a local unlisted company may be exempted, provided that the beneficiary holds at least 25% of voting shares for a period of at least 3 months. Dividends received may be 50% tax exempt, provided that the beneficiary has been held the shares for at least three months before and three months after the dividends were received. Dividends received from foreign companies are taxable, but may be exempted if beneficiary holds at least 25% of shares with voting rights of the payer for a period not less than 6 months and profits were subject to at least 15% tax on source. There may be tax exemptions on dividends received by BOI companies and companies under the IHQ and ITC regimes. A dividend is a distribution of earnings of the legal entity, established by the board of directors, to a particular class of shareholders. Dividends can be issued as shares of stock, cash payments, or other property.
Capital Gains are considered ordinary business income and included in corporate tax base. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.
The interest withholding tax rate is estimated at 15%. Which means that the tax authorities expects relevant legal entities to withhold 15% of interests remitted abroad. The dividends withholding tax rate is 10%. This means that the relevant tax authorities expects Co. Ltd.'s to pay tax on 10% of dividends remitted abroad. Royalties are subject to a withholding tax of 15%. This means that a resident company must pay 15% tax on their payments on royalties to non-resident companies. Withholding tax rates may be reduced under a tax treaty.
There is no known tax on wealth in Thailand. There are inheritance, transfer and real property taxes. There are widely used credits for innovation spend that include tax relief in this country.
The above is not tax or legal advice for your particular situation. Incorporations.io can point you to an expert in Thailand who can properly advise you. Contact us today. Click incorporate now if you are in a hurry, or press the free consultation button above.
It takes approximately 160 hours to file and prepare documents for a Thailand Mixed (Civil and common).
The corporate tax is approximately 20% which is 70 in the world.
Owners of a company in Thailand are not allowed to carry back a loss and may be allowed to carry forward a loss for 5 years.
The vat rate in Thailand is 7% which ranks 36 in the world.