Corporate Income Tax (CIT)
Corporate Income Tax (CIT) is a direct tax levied on a juristic company or partnership carrying on business in Thailand or not carrying on business in Thailand but deriving certain types of income from Thailand.
Who is subject to CIT?
Not all types of juristic persons are subject to CIT. According to the Revenue Code, the following entities are subject to CIT in Thailand.
1. A company or a juristic partnership incorporated under Thai law.
1.1 limited company
1.2 public company limited
1.3 limited partnership
1.4 registered partnership
2. A company or a juristic partnership incorporated under foreign law.
2.1 A company or juristic partnership incorporated under foreign laws and carrying on business in Thailand
2.2 A company or juristic partnership incorporated under foreign laws and carrying on business in other places including Thailand.
2.3 A company or juristic partnership incorporated under foreign laws and carrying on busiess in other places including Thailand, in case of carriage of goods or carriage of passengers.
2.4 A company or juristic partnership oncorporated under foreign laws which has an employee, an agent or a go-between for carrying on business in Thailand and as a result receives income or profits in Thailand.
2.5 A company or juristic partnership ibncorporated under foreign laws and not carrying on business in Thailand but receiving assessable income under Section 40 (2)(3)(4)(5) or (6) which is paid from or in Thailand.
3. A business operating in a commercial or profitable maner by a foreign government, organization of a foreign government or any other juristic person established under a foreign law.
4 Joint venture.
5. A foundation or association carrying on revenue generationg business, but does not include the foundation or association as prescribed by the Minister in accordance with Section 47 (7)(b) under the Revenue Code.
6. A corporate in which Director General of Revenue Department of Thailand prescribe under cabinet ministry approval and Royal Thai Government Gazette’s announcement, for example, stock Exchange of Thailand (SET).
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