Business taxes in 2020

The year is coming to an end, which means that the time for filing income tax returns is coming. More precisely, the reporting time will come up later - until the end of May next year, but it is better to start calculating income and expenses now.

The tax rate remains unchanged this year: 20%

For enterprises with the status of small and medium-sized enterprises, a progressive tax rate has been established:

Profit, baht Tax rate

0 - 300,000 0%

300,001 - 1,000,000 15%

Over 1,000,000 20%

* A small or medium-sized enterprise will be a company whose registered capital is less than 5 million baht and whose annual revenues do not exceed 30 million baht.

Costs

A general list of expenses that can be deducted from the tax base can be found here.

In 2020, due to the coronavirus, it is possible to reduce the tax base for additional items. In particular, the tax deduction for the costs of wages paid in the period from April 1 to July 31, 2020 will amount to 300% of the costs, provided that the following conditions are met:

1. For the previous reporting period of 12 months ended September 30, 2019 or earlier, total income was no more than 500 million baht and no more than 200 employees were employed;

2. The number of employees in the last days of April, May, June and July 2020 must not be less than the number of employees on the last day of March 2020;

3. The deduction benefit applies only to wages, not more than 15,000 baht per month;

You can read about other deduction benefits in the previous article.

What is important to remember:

- When the turnover for the reporting year reaches 1.8 million baht, the company must register as a VAT payer.

What amounts are included in the turnover and what are not - it is worth talking about this with the auditor who serves the company.

- It is possible to reduce the taxable base at the expense of the cost of payment for goods, services, rent, salaries until the end of the reporting year. Post-year payments will not be included in expenses retroactively.

- All of the above will be relevant for a company in which the reporting year differs from the calendar year, the time for submitting the balance sheet is 150 days after the end of the reporting year.

For all tax matters in Thailand, call us: + 6687-348-57-03.