Thailand

In Thailand, the standard Value-Added Tax (VAT) rate is 10%, although it has been temporarily reduced to 7% until 30 September 2026, subject to government extension. VAT is imposed on the sale of goods and services, and certain sectors, such as exports, are zero-rated. Additionally, goods and services such as basic groceries, education, healthcare, and real estate leasing are exempt from VAT. Non-resident electronic service providers and digital platform operators generating income over THB 1.8 million per year from non-VAT-registered customers in Thailand are required to register, file returns, and pay VAT without issuing tax invoices or preparing input tax reports. These transactions are processed electronically through the Revenue Department.

Specific Business Tax (SBT) in Thailand is levied on the gross revenue of specific businesses not covered under VAT, such as commercial banking, financial services, and real estate transactions. SBT is set at 3% for commercial banking and similar businesses and 2.5% for life insurance. Some revenue generated by banks, financial institutions, and credit-related businesses enjoys a reduced tax rate of 0.01%. An additional 10% of the business tax is charged as a municipal tax in Thailand.

The headline Corporate Income Tax (CIT) rate in Thailand is set at 20%. Companies must submit their CIT returns within 150 days from the closing date of their accounting period. Similarly, taxes based on returns must be settled within the same 150-day period. CIT also requires estimated payments, which are due two months after the close of the first six months of the company’s accounting period. This tax applies to all legal entities conducting business in Thailand.

Thailand imposes a progressive Personal Income Tax (PIT) with a headline rate of 35%. PIT returns must be submitted by 31 March of the year following the tax period, with final payments also due by that date. While PIT is generally calculated annually, certain types of business income require tax payments for the first half of the year to be made by 30 September. PIT covers all income earned by individuals residing or generating income in Thailand.

In Thailand, withholding tax (WHT) rates differ depending on the type of income and the residency status of the taxpayer. For Thai corporations, the rates are 10%, 1%, and 3% for dividends, interest, and royalties, respectively. Non-resident corporations face WHT rates of 10% for dividends and 15% for both interest and royalties. These rates apply to both corporate and individual income sourced within Thailand and are payable to the Thai tax authorities.