Corporate Income Tax | Forvis Mazars in Thailand

CIT is a direct tax levied on legal entities (companies) established under Thai law, as well as legal entities established under foreign law that conduct business in Thailand, or which derive certain types of income from Thailand.

There are two CIT returns to be filed per annum:

Half year tax return (PND 51)

Half year tax is a prepayment calculated from the tax payable on the forecast net profit for the year. The prepaid tax is creditable against the full year tax liability. If a company fails to file the half-year tax return or underestimates its net profits by a margin exceeding 25% of the full-year net profits without reasonable cause, it shall be liable to pay surcharge of 20% of the amount of the tax shortfall.

We assist our clients to reasonably forecast the annual profit and advise on which choice to adopt to comply with the Thai Revenue Code when preparing the half year tax return. Mazars will submit the half year tax return and work with the company to coordinate the necessary payments within the required deadline.

Annual tax return (PND 50)

The CIT of a company conducting business in Thailand is calculated from the company’s net profit on an accrual basis. A company must take into account all revenue arising from, or as a consequence of, the business conducted in an accounting period, and may deduct all expenses in accordance with the conditions set out in the Revenue Code.

Mazars will prepare the CIT computation based on its knowledge of the detailed breakdown of the company’s income and expense. After completing the return, we will submit the annual tax return and work with the company to coordinate the necessary payments within the required deadline.

Board of Investment tax incentives

Board of Investment (BOI) promoted companies that receive tax incentives such as a tax holiday or additional deductions for specific expenditure may need to allocate income and expense across multiple BOI projects as well as non-BOI activities. Our experts have considerable experience in preparing tax computations that comply with BOI regulations and the Thai Revenue Code.