Whether you're registering a company or running a sole-proprietorship, getting the basics of Thai tax law right will save time, money, and stress. Below we explain five key taxes new business owners should know, with simple examples and practical tips.

1. Value Added Tax (VAT)

What it is: VAT is an indirect tax on the sale of goods and services. Businesses with annual turnover exceeding 1.8 million THB must register for VAT and file monthly returns (form P.P.30).

Practical tip: If you are close to the threshold or work with corporate clients who require VAT invoices, consider voluntary registration to appear more professional.

2. Withholding Tax

What it is: Tax you must deduct when making certain payments (e.g., service fees, rent). The payer is responsible for remitting the tax to the Revenue Department.

Example: If you pay a freelancer 10,000 THB, and the rate is 3%, you withhold 300 THB to remit to the tax authorities and give the freelancer a withholding tax certificate.

3. Personal & Corporate Income Tax

What it is: This depends on your legal form. Sole proprietors pay personal income tax on profits; companies pay corporate income tax (CIT) on net profit.

Practical tip: Proper bookkeeping and a clear separation between personal and business transactions are essential for accurate tax filing.

4. Signboard Tax (Local Business Tax)

What it is: Local authorities levy taxes on commercial signage. Rates depend on sign size, language, and location.

Practical tip: Check with the local district office before installing signs to understand permit and tax requirements.

5. Specific Business Tax (SBT)

What it is: SBT applies to specific business categories like banking, finance, and real estate trading. It is not applicable to all businesses.

Practical tip: If your business is in a regulated sector, consult a specialist to determine if SBT applies.

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