Thailand

Overview

Last reviewed - 14 January 2020

Thailand, a country located in Southeast Asia, is bordered by Myanmar to the north and northwest, Lao PDR and Cambodia to the east, Malaysia and the Gulf of Thailand to the south, and the Andaman Sea to the southwest. A unified Thai kingdom was established in the mid-14th century. Known originally as Siam, the country was renamed Thailand (Land of the Free) in 1939. Thailand's capital city is Bangkok, its currency is the baht (THB), and the official language is Thai.

Following almost five years of military rule, a general election was held on 24 March 2019 pursuant to a new constitution that was promulgated on 6 April 2017. The new government took office on 16 July 2019.

Thailand is Southeast Asia’s second largest economy after Indonesia. With a well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand historically has had a strong economy. However, it experienced slow growth from 2013 to 2015 as a result of domestic political turmoil and sluggish global demand, which curbed Thailand’s traditionally strong exports, mostly electronics, agricultural commodities, automobiles and parts, and processed foods. The improvement that started in 2016 continued due largely to the growth in the agriculture, export, tourism, and key production sectors, such as manufacturing and construction. The gross domestic product (GDP) growth for 2018 was 4.1%. However, 2019 has not been a good year, and the GDP growth is currently estimated to be in the region of 2.6%. While government spending is continuing on large infrastructure projects related mainly to the dual tracking of railways and the expansion of the key economic sectors, the decline is a result of slower global demand, declining exports due in part to US/China tensions, and the appreciation of the Thai baht. Nevertheless, the government has in place a 20-year National Strategy (2017-2036) for attaining developed country status through broad reforms that address economic stability, human capital, equal economic opportunities, environmental sustainability, competitiveness, and effective government bureaucracies.

PwC has had a presence in Thailand for 60 years. Our client base includes some of the largest Thai and multinational companies as well as government institutions. Our close interaction with both economic and state bodies allows us to keep up with the fast-changing business environment. We have over 2,000 people working in our Bangkok-based office.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%) 20
Corporate income tax (CIT) due dates
CIT return due date Within 150 days from the closing date of the accounting period.
CIT final payment due date Within 150 days from the closing date of the accounting period.
CIT estimated payment due dates Within two months after the end of the first six months of the accounting period.
Personal income tax (PIT) rates
Headline PIT rate (%) 35
Personal income tax (PIT) due dates
PIT return due date 31 March
PIT final payment due date 31 March
PIT estimated payment due dates NA (except for certain business income, when tax on the income for the first half-year must be paid by 30 September each year)
Value-added tax (VAT) rates
Standard VAT rate (%) 7
Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy) Resident: 10 / 1 / 3;
Non-resident: 10 / 15 / 15
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) Capital gains are subject to the normal CIT rate.
Individual capital gains tax rate (%) Capital gains are subject to the normal PIT rate.
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NA
Inheritance and gift tax rates
Inheritance tax rate (%) 10
Gift tax rate (%) 5

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.