MBMG
L AW O F F I C E
Legal Update Mar 2012
Thailand - Reduced corporate tax rates In preparation for the implementation of the ASEAN Economic Community in 2015 and to promote Thailand’s international competitiveness the Government has acted to reduce corporate income tax rates with immediate effect for the 2012 tax year.
1. General principle for companies and partnerships
In general the maximum rate of income tax for companies and partnerships is reduced as below although for smaller and some listed companies, lower rates apply with immediate effect for the 2012 tax year. 2012 2013-2014
Maximum corporate income tax rate: 23% Maximum corporate income tax rate: 20%
2. Small companies and partnerships
Small companies and partnerships with paid capital of less than THB 5,000,000 at the end of each accounting period and with revenue from sales of goods and services of not more than THB 30,000,000 are now subject to the following tax rates: - Net taxable profit not exceeding THB 150,000: exemption from corporate tax 2012
- Net taxable profit over THB 150,000 but not exceeding THB 1,000,000: 15% tax rate. - For net taxable profit of more than THB 1,000,000 : 23% tax rate - Net taxable profit not exceeding THB 150,000: exemption from corporate tax
2013-2014
- Net taxable profit over THB 150,000 but not exceeding THB 1,000,000: 15% tax rate. - For net taxable profit of more than THB 1,000,000 : 20% tax rate
Therefore, in contrary, from 1st January 2012, Any company with paid-up capital less than 5 million baht at the end of each accounting period or revenue from sales of goods and services not exceeding THB 30 million, the rate of income tax of normal rate, if the company registered before the end of year of 2009, the rate of income tax shall entitled to the benefit as the former laws which is Royal Decree No. 471/2007.
MBMG Legal Update
Mar 2012
3. Companies listed in stock exchange
Companies listed on the Stock Exchange of Thailand (SET) are subject to tax rates of 23% and 20% respectively for the 2012 and 2013-14 financial years. Those companies listed on the Market for Alternative Investments (MAI) and which are subject to the lower 20% tax rate pursuant to Royal Decree No. 467/2006 (as amended by Royal Decree No. 474/2007), continue to enjoy the 20% tax rate for 2012. Other companies listed on the are subject to a tax rate of 23% in 2012 reducing to 20% for 2013-14.
Summary of new tax rates
1. Companies and partnerships in general
2. Small Companies
3. Company newly listed in Market for alternative Investment (MAI)
2012
2013
2014
Law
23%
20%
20%
Royal decree No. 530/2011
- Net taxable profit not exceeding THB 150,000 exemption from corporate tax
- Net taxable profit not exceeding THB 150,000, exemption from corporate tax
-
- Net taxable profit less than THB 1,000,000: 15%
- Net taxable profit less than THB 1,000,000: 15%
-
- Net taxable profit > THB 1,000,000 : 23%
- Net taxable profit > THB 1,000,000 : 20%
-
-
20%
20%
-
3.1 Entitled to reduced rate pursuant to Royal decree 467/ 2004
20%
20%
20%
Royal decree 467/2006
3.2 Not entitled to reduced rate
23%
-
-
+Royal decree 474/2007
4. Companies listed on Stock Exchange of Thailand (SET)
23%
20%
20%
+Royal decree 530/2008
MBMG Tax Services: In addition to the legal services provided by MBMG Law Office, MBMG Group provides tax and accounting services through MBMG Accounting And Tax Advisory Services Co., Ltd. MBMG Accounting And Tax Advisory Services Co., Ltd can assist in conducting a full tax review of your business and determine the most efficient tax structure for you as well as ensuring compliance with existing tax policies and procedures.
Contact:
Mr. Thammarat Sangchan Attorney-at-Law Tel: +66(0)2 665 2534-9 ext. 111 E-mail: thammarat@mbmg-internaitonal.com Ms. Usa Suwanchatee CPA Tel: +66(0)2 665 2534-9 ext. 121 E-mail: sa@mbmg-international.com
Disclaimer:
Disclaimer: This publication has been prepared for general information only. MBMG Law Office Co., Ltd. make no warranty, representation or undertaking whether expressed or implied, nor does it assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. All right is reserved.