Date: August 12, 2026

What corporate income tax rate does a small Thai company pay?

Small Thai companies may qualify for reduced corporate income tax rates, depending on their paid-up capital and annual income. Eligible companies pay 0% on the first THB 300,000 of net profit, 15% on the next THB 2.7 million, and 20% on profits exceeding THB 3 million.

What We See In Practice

I thought every company paid 20% corporate tax.

WHAT CLIENTS ASK US

It’s easy to see why people think that, but it’s not always the case. Many small businesses qualify for lower corporate income tax rates. The applicable tax rate for your company depends on your company’s paid-up capital and annual net profit, so it’s worth understanding how the different tax bands work before estimating your tax bill.

Thailand’s standard corporate income tax rate is 20%, but many small and medium-sized companies qualify for reduced rates. To be eligible, a company must have paid-up capital of no more than THB 5 million and annual revenue of no more than THB 30 million. Eligible companies pay 0% on the first THB 300,000 of net profit, 15% on the next THB 2.7 million, and 20% on profits exceeding THB 3 million.

Qualifying for the reduced corporate income tax rates does not change your company’s filing obligations. Companies are still required to submit a half-year corporate income tax return after the first six months of their accounting period and a final annual return within 150 days of their financial year end. Even if the company makes little or no profit, these filing obligations still apply and failing to submit the required returns on time may result in penalties being imposed.

Author: Vincent Birot

Vincent Birot is a French-trained international business lawyer based in Bangkok. He holds a Master’s degree in International Business Law from La Sorbonne and an LL.M in International Commercial Law from the University of Exeter (UK), and has passed the Paris Bar examination. He is the Founder of Belaws, a one-stop platform for legal and corporate matters, facilitating access to trusted legal and business professionals who deliver compliant, practical solutions aligned with local laws and on-the-ground realities. He has advised foreign investors for over 10 years on corporate structuring, BOI promotion, cross-border tax, and regulatory compliance in Thailand. He previously served as Vice President of the Franco-Thai Chamber of Commerce and is a founding member of French Tech Bangkok.