"Ask & Answer" Is It Really Necessary for Businesses to Consult Experts on Corporate Tax?

Consult on tax matters with experts in accounting and corporate tax planning Corporate Income Tax.

Corporate Income Tax (CIT) Corporate Income Tax (CIT) is a tax levied on companies or entities registered as juristic persons that conduct business and generate income. One key feature of CIT is that it is imposed on the company’s net profit, which is calculated by subtracting allowable business expenses from total revenue. The standard tax rate is 20% of net profit. Certain expenses may also be deductible to reduce the taxable amount. 

Which types of juristic persons are subject to tax? 

1. Limited companies, public limited companies, limited partnerships, registered ordinary partnerships, and juristic persons registered under Thai law.

2. Companies or partnerships established under foreign law that operate businesses in Thailand or conduct business both in Thailand and abroad, including those involved with Thai business—whether receiving income from Thailand or transferring profits abroad—are also subject to corporate income tax if the income is generated from activities related to Thailand. 

3. Joint Venture 

4. Businesses operated for commercial purposes and profit-seeking 

5. Non-profit foundations or associations that engage in activities generating income

6. Juristic persons designated by the Director-General with the approval of the Minister and announced in the Royal Gazette as companies or juristic partnerships under the Revenue Code.

Juristic persons that are exempt from tax include:

• Government agencies, charitable organizations, and juristic persons granted tax incentives by the BOI or under other special agreements as specified by law.

Corporate income tax collection, including tax benefits and incentives.

For corporate income tax collection, there are conditions allowing business operators to pay tax based on varying net profit rates, which can help reduce expenses in this area.

ช่วง “ถามมา – ตอบไป”  ทำไมทำธุรกิจต้องปรึกษาเรื่องภาษีนิติบุคคล !

Frequently Asked Questions About Corporate Income Tax

Q : What is corporate income tax? How is it different from personal income tax?

A : Corporate income tax (CIT) is a tax levied on the income of juristic persons such as limited companies, partnerships, or organizations registered under Thai law. It is calculated based on the net profit for the tax year. This differs from personal income tax, which is based on progressive income brackets applied to individuals each year. Corporate income tax has a fixed rate and specific rules regarding expense deductions, tax planning, and the filing of tax returns.

Q : If you start a company but have not yet made a profit, will you still have to pay tax?

A : Even if a company has not yet made a profit or begun actual operations, once it is registered as a juristic person, it is still required to file annual tax returns (Form P.N.D. 50), and in some cases, mid-year tax returns (Form P.N.D. 51) as well. Failure to file within the deadline will result in fines and surcharges according to the law. Therefore, it is advisable to consult with a tax expert to manage risks through proper tax planning.

Q : Does an SME receive special tax privileges?

A : SMEs with paid-up capital not exceeding 5 million baht and annual revenue not exceeding 30 million baht receive special tax privileges, such as :

• Net profit not exceeding 300,000 baht : Tax exempt
• Net profit from 300,001 to 3,000,000 baht : Subject to 15% tax
• If exceeding 3 million baht : Subject to 20% tax
  

Q : How is tax planning different from tax evasion?

A : วางแผนภาษี (Tax Planning) คือการบริหารรายได้และค่าใช้จ่ายให้สอดคล้องกับกฎหมาย เพื่อลดภาระภาษีอย่างถูกต้อง เช่น ใช้สิทธิลดหย่อนภาษี หรือเลือกวิธีหักค่าเสื่อมราคาอย่างเหมาะสม จะแตกต่างจากการเลี่ยงภาษี (Tax Evasion) ซึ่งเป็นการจงใจไม่ปฏิบัติตามกฎหมาย เช่น ปกปิดรายได้ ปลอมเอกสาร ซึ่งมีโทษทั้งแพ่งและอาญา อาจจะทำให้ธุรกิจหมดความน่าเชื่อถือ ผิดกฏหมาย ไม่เป็นที่ไว้วางใจได้ทั้งต่อคู่ค้า ผู้บริโภค  รวมถึงสังคม

Q : Is it necessary to hire a tax consultant if you already have an accounting firm?

A : : Most accounting firms focus on bookkeeping and tax filing in compliance with the law, but they may not specialize in strategic tax planning. A tax and accounting consultant can provide a broader perspective, offering advice based on experience from working with multiple companies. They help ensure fast, convenient, accurate, and transparent processes, and can guide you in navigating changes in tax regulations—such as the upcoming Global Minimum Tax law set to take effect in 2025. 

ปรึกษาผู้เชี่ยวชาญเรื่องภาษี Click 

Doing business as a juristic person offers many advantages, such as legal credibility, asset separation, and greater access to funding. However, it also comes with more complex tax obligations. Without proper planning, it may lead to financial consequences in the future.

Therefore, having an accounting and tax planning consultant who understands the corporate accounting system and can provide proper tax management strategies is essential for entrepreneurs aiming to grow their business with stability and transparency. Most importantly, it ensures convenience and smooth operations.

Contact Us 

• Facebook : FDI Group – Business Consulting
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• E-mail : infojob@fdi.co.th
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