Corporate income tax refunds via Prompt Pay

Keywords: Mazars, Thailand, Corporate Income Tax, Refund, Prompt Pay, Royal Department, e-payment

Corporate Income Tax in Thailand

Companies registered in Thailand are subject to corporate taxation on their global income. This comprehensive tax structure implies that both domestic and international revenues are taxable under Thai law. The prevailing corporate income tax (CIT) rate stands at 20%.

On the other hand, foreign entities or companies organised under laws outside of Thailand, are taxed differently. Their corporate income tax obligation is confined to income originating from, or as a result of, business activities within Thailand. A crucial aspect to note here is the application of final withholding tax (WHT) on specific types of income, such as interest, dividends, royalties, rentals, and service fees garnered from or within Thailand. The general withholding tax rate is 15%, with dividends taxed at 10%. However, these rates can vary when applied under the provisions of a double tax treaty (DTT) in international taxation.

Corporate Income Tax Refunds Via PromptPay

This tax refund method can be used by a corporate taxpayer that meets the following qualifications:

1. It is a legal entity that has registered for PromptPay.

2. It has a corporate income tax refund of less than THB 100 million.

3. It has not changed its corporate status.

The Revenue Department will consider making a tax refund to the company's bank account linked to its 13-digit corporate registration number for corporate taxpayers that meet all of these conditions. For other corporate taxpayers that do not meet these conditions, the Revenue Department will still provide tax refunds by cheque or wire transfer. The goal is for all corporate income tax refunds to be made eventually through PromptPay rather than by cheque or wire transfer to support the national e-payment policy.

Mazars' Insight on Corporate Income Tax

With its deep understanding of Thailand's legal and tax landscape, Mazars emphasises the importance of staying informed about these tax regulations. For corporate entities, understanding the intricacies of both domestic and international tax obligations is crucial for compliance and strategic financial planning. With the PromptPay system for corporate income tax refunds, Mazars recognises the Thai Revenue Department's effort to enhance the efficiency of tax administration by adopting technological solutions in governance.