Legal entities exempted from income tax

     Entities obliged to pay corporate income tax include registered companies or partnerships under the Civil and Commercial Code, which also encompass other legal entities not registered under the Civil and Commercial Code.

     Paying corporate income tax involves taxing the "profits" made from running a business, which can be calculated by deducting actual business costs from the revenue. Therefore, companies must maintain a clear record of income and expenses.

     However, there are other types of legal entities, especially those established under Thai law, such as Ministries, Departments, Government Organizations, or Cooperatives, that are not obliged to pay any corporate income tax.

     Moreover, there are some types of legal entities that fall under the category of being required to pay corporate income tax under the Revenue Code, but are exempt from tax according to the provisions of various laws, such as:

1. Companies or partnerships that are under the obligations that Thailand has according to the economic or technical cooperation agreements between the Thai government and foreign governments.
2. Limited companies that are exempted from income tax under the Investment Promotion Act.
3. Limited companies and other legal entities with the same status as a limited company established under Thai or foreign laws, that are exempted from corporate income tax under the Petroleum Income Tax Act.
4. Companies or partnerships located in countries that have a double taxation agreement with Thailand, subject to the conditions specified in the agreement.

Data updated on November 14, 2020

Source: The Revenue Department, 90 Phaholyothin 7, Phayathai, Phayathai, Bangkok 10400

Tel. +66 2272 8000

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