Thailand - Taxation

Personal income tax rates are graduated from 5–37%. Business and individual citizens are also subject to a host of indirect taxes, including customs duties, sales tax, and excise taxes. Corporate income taxes on net profits are levied at the flat rate of 30%. Stock dividends and capital gains are taxed as regular income.

As of September 2001, there are three value-added tax (VAT) rates. All VAT is refunded on exported goods, and small enterprises with less than 600,000 baht annual sales do not have to register for the VAT. Business with annual sales between 600,000 baht and 1.2 million baht can choose whether to pay a 7% VAT or a 1.2% tax on gross turnover. For larger companies, the VAT rate has been raised to 10% Remittances out of Thailand in the form of profits, income, or dividends are taxed at 25%. In addition, a municipal tax of 10% is levied on certain businesses. Reductions are available under the Investment Promotion Act. Import surcharges, designed to deter imports, were imposed in 1981 at rates between 5% and 30% on certain fibers, piston rings, palm oil, and telephones.

There are excise taxes on tobacco, petroleum products, alcoholic beverages and soft drinks, and other products. Automobiles are subject to a special tax based on engine size.

Thailand has double taxation treaties with 33 countries, including the United States, Canada, Australia, Belgium, Denmark, Finland, France, and Germany. The US treaty has been in force since January 1998.