Free invoice generator and tax tools for Thailand

Thai business owners deal mainly with the Revenue Department (กรมสรรพากร) for tax and the Social Security Office (สำนักงานประกันสังคม) for payroll contributions. Individuals pay progressive personal income tax: the first THB 150,000 of taxable income is exempt, rates then climb from 5% through 10, 15, 20, 25 and 30% to 35% above THB 4,000,000. Sole traders may deduct actual costs or a fixed share of income that depends on the income type.

Companies and juristic partnerships pay corporate income tax at 20% of net profit. A company with paid-up capital under THB 5 million at the end of its accounting period pays 15% on net profit between THB 300,000 and THB 3 million. Payers withhold tax at source on many payments, for example 3% on service and professional fees paid to a Thai company and 2% on advertising fees, and file withholding returns themselves.

Employers also deal with social security, where the wage base used for contributions was raised by a ministerial regulation published in the Royal Gazette on 12 December 2025 and applies from 1 January 2026. The most recent change to the VAT rate is Royal Decree (No. 807) B.E. 2569, which the Revenue Department listed on 24 August 2026.

Thailand has no turnover-based presumptive regime that replaces VAT or income tax. The nearest relief is the reduced corporate rate for small companies. The Revenue Department's corporate income tax guide defines a small company as one with paid-up capital under THB 5 million at the end of the accounting period, and taxes its net profit between THB 300,000 and THB 3 million at 15% and anything above THB 3 million at 20%. Individuals have a different kind of relief: instead of proving actual expenses they may deduct a fixed percentage of income, 30% for liberal professions (60% for medicine), 70% for contract work where the contractor supplies the essential materials, and 65% to 85% for other business income depending on its type. Check the Revenue Department's current guide for any further conditions before relying on the small-company rate.