Quick answer
Thailand's corporate income tax rate is 20% in 2026. Small companies with paid-up capital of THB 5 million or less and revenue of THB 30 million or less pay 0% on the first THB 300,000 of profit, 15% up to THB 3 million and 20% above. Dividends carry 10% withholding, and a 15% global minimum top-up tax applies to groups with revenue of EUR 750 million or more.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Check my business setup →You run or plan a Thai company, or you run a foreign company from Thailand and wonder whether it is taxed here. This guide gives you the 2026 corporate rates, the SME bands, how profit is computed and filed, withholding on dividends and cross-border payments, the BOI and IBC incentives, and the permanent establishment trap for remote founders.
Thailand corporate income tax in 2026: the key figures
| Item | 2026 figure |
|---|---|
| Standard corporate income tax rate | 20% of net profit |
| SME rates (paid-up capital ≤ THB 5 million, revenue ≤ THB 30 million) | 0% on first THB 300,000; 15% on THB 300,001–3,000,000; 20% above |
| Withholding on dividends paid to individuals or foreign companies | 10% |
| Withholding on interest, royalties and service fees paid abroad | 15% (treaty rates may be lower) |
| Profit remittance tax for branches | 10% |
| Global minimum top-up tax (groups with revenue ≥ EUR 750 million) | 15% effective rate, from fiscal years beginning 1 January 2025 |
| Annual return (P.N.D. 50) | Within 150 days of year end |
| Half-year return (P.N.D. 51) | Within 2 months of the half-year end, on estimated annual profit |
| Loss carry-forward | 5 years |
Is this guide for you?
Read on if you…
- have a Thai limited company, or are choosing between a company and freelancing as an individual;
- own a foreign company and spend most of the year in Thailand;
- want to know what BOI promotion or IBC status is really worth.
Probably not your case if you…
- only earn salary or freelance income (go to personal income taxes in Thailand);
- are a multinational tax team needing Pillar Two detail (only summarised here).
Who pays corporate income tax in Thailand?
Under Section 66 of the Revenue Code, a company or juristic partnership incorporated in Thailand pays corporate income tax on its worldwide net profit. A company incorporated abroad pays Thai tax only on profit from business carried on in Thailand, usually through a branch, an office, an employee or an agent, which is a permanent establishment.
The tax year is the company's accounting period, normally 12 months; a December year end is standard but not required. Profit follows Thai accounting standards adjusted by the Revenue Code: non-deductible items are added back and exempt income removed. The deductibility rules are in business expenses in Thailand.
Foreign ownership of the entity is a separate question. The Foreign Business Act caps foreign shareholding at 49% in most service businesses unless you hold BOI promotion, a Foreign Business Licence or qualify under the US–Thailand Treaty of Amity. The entity options are compared in legal forms of business in Thailand.
What are the corporate tax rates in 2026?
The headline rate is 20%. Royal Decree No. 530 and its successors give SMEs a lower scale. To qualify, the company must have paid-up capital of THB 5 million or less at the end of the period and revenue from sales and services of THB 30 million or less in that period.
| Net profit (SME) | Rate |
|---|---|
| THB 0 – 300,000 | 0% |
| THB 300,001 – 3,000,000 | 15% |
| Above THB 3,000,000 | 20% |
Example: an SME with THB 2 million profit pays THB 255,000 (0 on the first 300,000, 15% on 1.7 million), an effective rate of 12.75%. A non-SME pays THB 400,000.
Other rates exist for specific taxpayers:
- Branches of foreign companies: 20% on Thai profit, plus 10% on profit remitted abroad (Section 70 bis).
- Foreign companies without a Thai PE receiving Thai-sourced income: withholding under Section 70 of 15% on interest, royalties and service fees, 10% on dividends, as a final tax, subject to treaties.
- International shipping and some funds: special rates, outside this guide.
Dividends paid by a Thai company to an individual carry 10% withholding. A resident individual can treat it as final or include the dividend in the return and claim a credit for the underlying corporate tax (Section 47 bis), which helps at low income levels.
How are returns filed and tax paid?
Thai companies pay twice a year:
- Half-year return (P.N.D. 51), due within two months of the end of the first six months. You estimate the full-year profit and pay half the estimated tax. If your estimate falls more than 25% short of the actual profit without a reasonable excuse, a 20% surcharge applies to the shortfall.
- Annual return (P.N.D. 50), due within 150 days of year end, with audited financial statements. For a December year end that is 29 May 2026. E-filing adds eight days.
Alongside, the company files monthly: withholding tax returns (P.N.D. 1, 3, 53, 54) by the 7th of the following month, VAT (P.P. 30) by the 15th, and self-assessed VAT on foreign services (P.P. 36). Audited accounts also go to the Department of Business Development within five months of year end.
Losses carry forward five years. There is no group relief, no consolidation and no carry-back. Late payment attracts a 1.5% monthly surcharge; late filing a fine of up to THB 2,000 per return plus penalties on assessment, as described in laws on tax fraud in Thailand.
Which incentives can cut the rate?
BOI promotion
The Board of Investment grants corporate income tax exemptions of 3 to 8 years (up to 13 years for targeted technology) to promoted projects, plus import duty relief and 100% foreign ownership. Software, digital services, biotech and advanced manufacturing are on the list. The promoted activity, not the whole company, is exempt, so keep separate accounts.
International Business Centre (IBC)
A Thai company serving affiliated companies abroad pays 8%, 5% or 3% on qualifying service income depending on Thai spending (THB 60 million, 300 million or 600 million a year), with dividends to foreign shareholders exempt from withholding. Minimum paid-up capital THB 10 million and 10 skilled employees. This is a group tool.
Eastern Economic Corridor
Projects in the EEC provinces receive extended BOI holidays and a 17% flat personal rate for expatriate executives. See tax breaks for expatriates and digital nomads in Thailand.
Global minimum tax
The Emergency Decree on Top-up Tax B.E. 2567 implements the OECD Pillar Two rules from fiscal years starting 1 January 2025. Groups with consolidated revenue of EUR 750 million or more pay a top-up to reach a 15% effective rate in Thailand, which erodes BOI holidays for large groups. Small companies are unaffected.
Is your foreign company taxed in Thailand?
This is the question remote founders skip. A company incorporated abroad is taxed in Thailand on profit attributable to a permanent establishment here. Under Section 76 bis, an employee, representative or go-between in Thailand who concludes business for the company creates one. Treaties narrow this to a fixed place of business, a dependent agent or, in some treaties, services performed in Thailand for more than 183 days.
The practical risk: you are the sole director of your Estonian or Delaware company, you live in Bangkok all year and you sign contracts from there. The Revenue Department can argue the company is managed in Thailand and tax the attributable profit at 20%, plus the 10% remittance tax. In 2026 enforcement against one-person foreign companies is rare but not zero, and it becomes likely once you have Thai clients or Thai staff.
Two clean answers exist: a Thai company for Thai-side activity, or BOI promotion that allows 100% foreign ownership. For the trade-offs and how treaties allocate profit, read tax treaties of Thailand. If you want the structure set up end to end, see Heavnn business setup.
| Structure | Liability | Minimum capital | Setup cost and time | Corporate tax | Can a non-resident run it remotely? |
|---|---|---|---|---|---|
| Thai limited company (Thai-majority) | Limited | None by law; THB 2 million per foreign work permit | THB 30,000–60,000; 1–2 weeks | 20% or SME scale | Yes as director abroad; needs 51% Thai shareholders |
| Thai limited company, BOI-promoted | Limited | Per project, often THB 1 million+ | 2–4 months for promotion | 0% for 3–8 years, then 20% | Yes, 100% foreign ownership |
| Branch of foreign company | Parent liable | THB 3 million | Foreign Business Licence, 2–4 months | 20% + 10% remittance tax | Yes, but is a PE |
| Representative office | Parent liable | THB 2 million | 1–2 months | Not taxed (no income allowed) | Yes, non-trading only |
| Foreign company with no Thai entity | Parent liable | — | — | 20% on PE profit if a PE exists | Risky once managed from Thailand |
Example – Daniel, Canadian SaaS founder, Thai limited company since 2025
Daniel's company bills USD 400,000 (about THB 13.5 million) in 2026 to clients abroad, with THB 9 million of costs including his own THB 1.8 million salary and three Thai developers. Paid-up capital is THB 3 million and revenue is under THB 30 million, so SME rates apply. Profit THB 4.5 million: tax is 0 on 300,000, 15% on 2.7 million (405,000) and 20% on 1.5 million (300,000), total THB 705,000, an effective 15.7%. He pays THB 2 million as a dividend: 10% withholding, THB 200,000. Personal tax on his salary is about THB 200,000. Had he kept his Canadian company and run it from Bangkok, the PE exposure would have been the same 20% with none of the SME bands and no work permit.
Daniel's tax bill depended on capital, revenue and where he signs contracts. Yours probably does too.
Get your Thai or foreign company checked for rate, PE risk and withholding before year end.
Check my business setup →Common mistakes (and what they cost)
- Raising paid-up capital above THB 5 million for work permits → you lose SME rates; THB 2 million profit costs THB 400,000 instead of THB 255,000.
- Under-estimating profit on the half-year return by more than 25% → 20% surcharge on the shortfall.
- Paying foreign contractors without 15% withholding or P.P. 36 VAT → you owe both out of pocket, plus 1.5% a month.
- Running a foreign company from Thailand with Thai clients → permanent establishment assessment at 20% plus penalties, with no SME bands.
- Skipping the audit for a dormant company → fines from both the Department of Business Development and the Revenue Department, and the company cannot be closed cleanly.
Frequently asked questions
What is the corporate tax rate in Thailand in 2026?
20% of net profit for companies and juristic partnerships. SMEs with paid-up capital of THB 5 million or less and annual revenue of THB 30 million or less pay 0% on the first THB 300,000, 15% up to THB 3 million and 20% above. BOI-promoted projects can be exempt for 3 to 8 years, and IBCs pay 3% to 8% on qualifying income.
Does Thailand tax the worldwide income of companies?
Yes for companies incorporated in Thailand: all profit, Thai or foreign, is taxed at 20%, with a credit for foreign tax under Royal Decree No. 300 or a treaty. Foreign-incorporated companies are taxed only on profit from business carried on in Thailand. Dividends received from a Thai subsidiary are often exempt if the shareholding and holding period tests are met.
How much tax does a company pay to distribute profit to its owner?
Corporate tax of 20% (or the SME scale) on the profit, then 10% withholding on the dividend. For a non-SME, THB 100 of profit becomes THB 72 in the shareholder's hand. A resident individual can elect to gross up the dividend and claim the corporate tax as a credit, which produces a refund at low income levels.
When is the Thai corporate tax return due?
The annual return (P.N.D. 50) is due within 150 days of the accounting year end, so 29 May 2026 for a 31 December 2025 year end, with audited accounts attached. A half-year return (P.N.D. 51) with a payment on estimated profit is due within two months of the half-year, so 31 August for a calendar-year company.
Is there a minimum tax or a tax on dormant companies?
No minimum corporate tax. A dormant company still files P.N.D. 50 and P.N.D. 51, has its accounts audited and files them with the Department of Business Development. Fines for missing filings are small but accumulate, and an unfiled company cannot be dissolved until returns are brought up to date.
How does Thailand compare with Singapore and Hong Kong on corporate tax?
Singapore charges 17% with partial exemptions on the first SGD 200,000, Hong Kong 8.25% on the first HKD 2 million and 16.5% above, and neither taxes dividends. Thailand's 20% plus 10% dividend withholding is higher, but SME bands and BOI holidays close much of the gap. See corporate income tax in Singapore and corporate income tax in Hong Kong.
Related guides
- Legal forms of business in Thailand
- Business expenses in Thailand
- Specific taxes of Thailand: VAT, withholding and stamp duty
- Tax treaties of Thailand
- Laws on tax fraud in Thailand
- Your tax guide to Thailand
- Corporate income tax in Singapore
- All country tax guides
Sources
- The Revenue Department of Thailand – Corporate income tax
- The Revenue Department of Thailand – English portal
- Office of the Council of State – Thai legislation
- Thailand Board of Investment
- Department of Business Development, Ministry of Commerce
- OECD – Global minimum tax (Pillar Two)
This guide is general information, not personalised tax advice. See how we research and review.
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