🇹🇭 Thailand Company Formation
BOI promotion — 0% CIT for up to 13 years with 100% foreign ownership. LTR Visa at 17% flat PIT. Low operating costs with 61 tax treaties.
Updated April 2026
BOI CIT
0% (up to 13 yrs)
Standard CIT
20%
LTR Visa PIT
17% flat
Tax Treaties
61
VAT
7%
Tax System
Rates and incentives
| Tax | Rate | Note |
|---|---|---|
| Corporate income tax | 20% | Standard rate. SMEs with paid-up capital under THB 5M: 0% on first THB 300k, 15% on THB 300k–3M. |
| BOI-promoted activities | 0% | CIT exemption for 3–13 years depending on tier. Plus 50% CIT reduction for 5 years post-holiday. |
| IBC — international business income | 8% | Reduced CIT for International Business Centres with 10+ employees and THB 15M+ local expenditure. |
| LTR Visa — PIT on employment | 17% | Flat rate for highly-skilled professionals and work-from-Thailand visa holders. |
| WHT — dividends to non-residents | 10% | Reduced by DTA network. Treaty rates as low as 5%. |
| VAT | 7% | Reduced from statutory 10%. Extended annually. Registration mandatory above THB 1.8M revenue. |
Why Thailand
Key advantages
BOI tax holiday — 0% CIT for up to 13 years
The most generous tax incentive package in Asia. Tier A1/A2 activities receive up to 13 years CIT exemption plus 50% reduction for 5 years after. Import duty exemptions on machinery and raw materials included.
100% foreign ownership via BOI
The Foreign Business Act caps foreign ownership at 49% in most sectors. BOI promotion bypasses this restriction entirely, granting 100% foreign ownership and work permits for international staff.
LTR Visa — 10-year residency with 17% flat PIT
Long-Term Resident visa for wealthy global citizens, pensioners, and skilled professionals. 17% flat PIT on Thai-source employment income. 10-year renewable with work permit.
Operating costs 40–60% below Singapore/HK
World-class infrastructure and talent at significantly lower cost. Competitive for software development studios, R&D centres, and regional service hubs.
61 double tax treaties
DTA network covering Japan, US, UK, China, Germany, Singapore, and all major Asian trading partners. Strategic ASEAN hub location.
What We Build
Full scope of implementation
- ✓BOI application and business plan submission for qualifying activities
- ✓Thailand Limited Company registration post-BOI approval
- ✓Minimum shareholder coordination — 3 shareholders required by law
- ✓Work permit and visa processing for directors and international team
- ✓Corporate bank account — full KYC file for traditional Thai banks
- ✓Annual BOI reporting, PND50 tax filing, and statutory audit
- ✓LTR Visa application coordination for founders
Who This Is For
Ideal client profiles
2025 – 2026
What has changed
⚠ Foreign income remittance — now fully taxable from 2024
Thailand-resident individuals who remit foreign income are now taxed regardless of which year the income was earned. Eliminates the prior year-of-earning loophole used in tax planning.
Pillar Two — QDMTT and IIR officially promulgated
Thailand implements global minimum tax for MNE groups with consolidated revenue above EUR 750M. Detailed secondary legislation issued December 2025.
LTR Visa program — continues with 17% flat PIT
Long-Term Resident visa remains available for wealthy global citizens, pensioners, and highly-skilled professionals with qualifying income thresholds.
Common Questions
FAQ
Can foreigners own 100% of a Thai company?
Only with BOI promotion or specific exemptions under the Foreign Business Act. Without BOI, foreign ownership is capped at 49% in most sectors. Nominee Thai shareholder structures exist but carry legal risk — they are technically prohibited.
What activities qualify for BOI promotion?
BOI promotes technology-intensive and high-value activities: software development, digital services, R&D centres, advanced manufacturing, data centres, and biotechnology. Each activity is classified into tiers (A1–B2) with different incentive levels. A1/A2 activities receive the most generous tax holidays.
How does the LTR Visa tax benefit work?
LTR Visa holders in the Highly-Skilled Professional and Work-from-Thailand categories pay a flat 17% PIT on Thai-source employment income. Foreign-source income for Wealthy Global Citizens and Wealthy Pensioners is subject to remittance-basis taxation.
Is Thailand still attractive after the foreign income tax change?
For BOI-promoted companies — yes, the 0% CIT holiday is unaffected. For personal tax planning — the 2024 change to tax remitted foreign income regardless of earning year eliminates a key planning advantage. LTR Visa holders retain preferential treatment.