Starting a business in
🇹ðŸ‡Thailand
Checked November 4, 2026 · How we score
Corporate tax
20%
Top income tax
35%
Setup from
$2,500
all-in, first year
Time to form
21 days
visit usually needed
Taxes in Thailand
| Corporate income tax | 20% 20% standard rate. SMEs with paid-up capital of THB 5m or less and annual revenue up to THB 30m pay 0% on the first THB 300,000, 15% on THB 300,001-3m, and 20% above. BOI-promoted companies can receive 3-13 years of corporate tax exemption. A 15% top-up tax applies to large multinational groups from 2025. |
|---|---|
| Personal income tax (top) | 35% Progressive rates from 0% to 35% (35% on net income above THB 5m). Tax residents (180+ days a year) are taxed on Thai-source income plus, since 1 January 2024, foreign-sourced income remitted to Thailand in any year, regardless of when it was earned. Long-Term Resident (LTR) visa holders in some categories get an exemption on foreign income. |
| Tax system | Remittance basis (taxed when brought in) |
| Capital gains tax | 0%No separate capital gains tax. Gains on listed securities are generally exempt for individuals; other gains are taxed as ordinary income, and non-residents may face 15% withholding on certain gains. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 7% |
| Social security | Social security is 5% each for employer and employee, capped at THB 750 a month. VAT is 7% (extended reduced rate from the standard 10%). |
Forming a company in Thailand
| Usual entity | Private limited company (Co., Ltd.) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $2,500–$7,000 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 21 days |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Hard |
Residency and visas
The Destination Thailand Visa (5-year multiple entry, 180 days per stay, THB 500,000 in funds) is the main nomad route but carries no tax benefits. The Long-Term Resident (LTR) 10-year visa covers Wealthy Global Citizens ($1m+ assets and $500k in Thai investment), Wealthy Pensioners, Work-from-Thailand Professionals ($80k income) and Highly-Skilled Professionals. Foreign-owned companies need THB 2m registered capital per work permit and four Thai employees per foreign worker in practice.
| Digital nomad visa | Destination Thailand Visa (DTV) |
|---|---|
| Golden visa | Yes, from $500k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Long-Term Resident (LTR) visa
10-year visa for four categories; Wealthy Global Citizens, Wealthy Pensioners and Work-from-Thailand Professionals get a Thai tax exemption on foreign-sourced income, and a flat 17% personal income tax rate applies to highly skilled professionals.
Destination Thailand Visa (DTV)
5-year, 180-days-per-stay visa for remote workers and soft-power activities; no tax benefits, and residents staying 180+ days are subject to Thai tax rules.
BOI promotion
Board of Investment promoted companies can be 100% foreign-owned, obtain land and work permit benefits and receive 3-13 years of corporate tax exemption in targeted industries.
US-Thai Treaty of Amity
US citizens and US-majority companies may own up to 100% of Thai companies in most non-restricted sectors.
Pros and cons
Why founders pick Thailand
- Low cost of living and company setup costs
- DTV and LTR give long-stay options
- Foreign dividends kept offshore are not taxed until remitted
- BOI tax holidays for target industries
Watch out for
- Foreign income remitted to Thailand is taxable from 2024 for tax residents
- Foreign Business Act limits non-Thai ownership to 49% outside BOI or treaty routes
- Bank account opening and work permits are paperwork heavy
- Mandatory audit and complex compliance for small companies
Best for: Remote workers who plan to hold foreign income offshore · Businesses selling inside Thailand through BOI or Amity Treaty structures · Long-stay retirees using the LTR visa
Thailand: common questions
Does Thailand tax foreign income?
Since 1 January 2024, foreign income earned by a Thai tax resident (180+ days) is taxable in Thailand when it is remitted into the country, even if it was earned in an earlier year. Income kept offshore is not taxed until it is brought in. LTR visa holders in certain categories are exempt.
What is the corporate tax rate in Thailand?
The standard rate is 20%. Qualifying SMEs pay 0% on the first THB 300,000 of profit, 15% on the next THB 2.7m and 20% above, and BOI-promoted companies can receive tax holidays.
Can a foreigner own 100% of a company in Thailand?
Usually not. The Foreign Business Act limits foreign shareholding to 49% for most activities, unless the company has a BOI promotion, a Foreign Business Certificate or benefits from a treaty such as the US Treaty of Amity.
Does the Thai digital nomad visa exempt foreign income from tax?
No. The Destination Thailand Visa gives no tax exemption, so staying 180 days or more can make you a tax resident subject to the 2024 remittance rule. The LTR visa is the one that offers a foreign-income exemption in some categories.
How much does it cost to set up a company in Thailand?
A Thai limited company typically costs about $2,500 to $7,000 in the first year, including registration, a registered address and accounting. If you employ a foreigner you also need at least THB 2 million of registered capital per work permit and four Thai employees.
Sources
- Revenue Department of Thailand
- Thailand Board of Investment - Long-Term Resident Visa
- Department of Business Development (Thailand)
- PwC Tax Summaries - Thailand
Compare Thailand
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.