This overview covers the corporate tax regime for companies operating in Thailand as of 2025. The focus will be on tax rates, progressive tax brackets, and notable surcharges based on the latest available data.
Corporate Tax Structure in Thailand
Corporate taxation in Thailand is structured on a progressive scale. The rates are determined by a company’s taxable income in Thai Baht (THB), with certain preferential rates for lower income brackets and additional surcharges in specific cases.
Progressive Corporate Tax Brackets
The Thai corporate tax regime uses three progressive brackets for standard companies. The 2025 brackets are detailed below. All amounts are in Thai Baht (THB), with a comparison in United States Dollars (USD) using an approximate 2025 exchange rate of 1 USD = 36 THB.
| Taxable Income (THB) | Taxable Income (USD) | Rate (%) |
|---|---|---|
| ฿0 – ฿300,000 | $0 – $8,333 | 0% |
| ฿300,001 – ฿3,000,000 | $8,334 – $83,333 | 15% |
| Over ฿3,000,000 | Over $83,333 | 20% |
These brackets apply to companies assessed on a corporate basis. The structure is designed to offer initial relief for lower profits while applying higher rates as profits increase.
Branch Profits Remittance Surtax
An additional consideration for multinational groups is the 10% surtax applied to branch profits that are remitted to a foreign head office. This is a surcharge on top of the regular corporate tax and is specific to the transfer of net profits abroad.
| Surtax Scenario | Rate (%) |
|---|---|
| Branch profits remitted to foreign head office | 10% |
No holding period requirements have been directly specified in the available data for 2025.
Corporate Tax in Practice
In Thailand, all corporate entities are required to calculate their tax liability according to the above brackets. Most domestic and foreign companies will fall within the progressive system, although certain incentives or exempt regimes may be available in specialized sectors (not covered in this overview).
Effective planning for multinational organizations is important given the specific surcharge on remitted branch profits. For corporate tax filings and guidance, always consult the Revenue Department of Thailand for official procedures and updates.
Pro Tips for Managing Corporate Tax in Thailand
- Accurately segment taxable profits according to brackets to ensure eligibility for the lower rates available on initial profits. Small differences in reporting can affect a company’s overall rate.
- If operating as a branch of a foreign company, factor the 10% remittance surtax into projections for funds sent abroad to avoid unexpected tax charges.
- Review your corporate structure each fiscal year to optimize for the most favorable rates and to ensure continued compliance with local documentation and reporting requirements.
- Maintain detailed accounting records, as progressive systems can be subject to greater scrutiny regarding precise income allocation.
- Monitor official updates from the Thai Revenue Department, as changes in brackets or surcharges can occur with annual fiscal policies.
Key Takeaways
The Thai corporate tax regime in 2025 remains progressive, with a 0% rate for the first ฿300,000 ($8,333), increasing to 15% and 20% beyond that threshold. Companies operating branches that remit profits to foreign headquarters must also account for a 10% surtax. Staying up to date with official guidance and structuring your finances in line with these brackets is essential for tax-efficient operations in Thailand.