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Reductions in company income tax rates

On October 11 2011 the Cabinet approved reductions in corporate income tax rates, and ordered the Board of Investment (BOI) and Ministry of Finance to review the benefits provided through BOI's investment promotion.

The tax rate reductions must be enacted in a Royal Decree under the Revenue Code.

Details of the tax reductions

Corporate income tax rate will be reduced to 23% of net profits for a company for its fiscal year ending on or after December 31 2012, and to 20% for accounting periods which commences on or after January 1 2013.

Various reductions in corporate income tax rates will be allowed for SMEs with paid-up capital at the end of the accounting period not exceeding THB5 million ($162,900), provided that such company does not earn income from the sale of goods and services exceeding THB30 million during an accounting period.

Companies which registered their securities with the Stock Exchange of Thailand by December 31 2009 and received the right to pay corporate income tax at the rate of 25% of net profits, shall pay a rate of 23% for the fiscal year ending on or after December 31 2012, and 20% for an accounting periods which commences on or after January 1 2013.

Corporate income tax rate will be reduced to 25% for companies which registered their securities with the Market for Alternative Investment, for the portion of profit not exceeding THB50 million for the fiscal year which ends on or after December 31 2011.

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