Legal Issues relevant to FDI in Thailand Part 4: Main Taxes

The main tax legislation applicable to FDI in Thailand is the Revenue Code (“RC”), which covers the following taxes:-

(1) Corporate Income Tax (“CIT”)

CIT applies to businesses and legal entities registered in Thailand or registered abroad but operating a business in Thailand. Except for SMEs, companies registered in Thailand pay CIT based on both their local and worldwide revenues at a current rate of 20% of the net profits. Foreign-registered companies doing business in Thailand are taxed on their net income from their operations in Thailand, except for foreign companies engaging in international transportation businesses (for example international airlines, cruise lines and operators of container vessels), which are taxed on their gross income.

(2) Personal Income Tax

A person resident in Thailand (anyone who spends 180 days or more in Thailand during a tax year) is…