In review: direct taxation of businesses in Thailand

All questions

Direct taxation of businesses

i Tax on profitsDetermination of taxable profit

CIT is usually imposed on the net profits of a business for one accounting period (the accounting period can be any 12-month period selected by each taxpayer). Net profits are ascertained according to conditions imposed under the Revenue Code. An all-inclusive concept of income is used, and all realised economic gains are treated as income (including capital gains), whether they occur regularly or only occasionally.

CIT is generally computed on an accrual basis – that is, income accruing in any accounting period (whether or not it has been received) is included as income for that period, and expenses may be deducted as they accrue (whether or not they have actually been paid out).

As a general matter, expenses incurred exclusively for the purpose of acquiring profits, or from conducting business…