Thailand continues to position itself as one of the leading investment destinations in Southeast Asia. Through the government’s “Thailand 4.0” policy, Thailand has introduced a wide range of tax incentives and investment privileges aimed at supporting Thai entrepreneurs, foreign investors, startups, and future-focused industries.
In 2026, Thailand continues to offer attractive tax measures, including Corporate Income Tax (CIT) incentives, BOI promotion privileges, benefits under the Eastern Economic Corridor (EEC), and incentives available in Special Economic Zones (SEZs). These measures significantly help reduce operational costs, improve business competitiveness, and attract greater foreign direct investment into the country.
Our Tax lawyers and Corporate Attorneys at Herrera and Partners law firm in Thailand have prepared a summary of the most relevant guidelines for taxation of companies doing business in Thailand in 2026.
Corporate Income Tax (CIT) in Thailand
Corporate Income Tax (CIT) is one of the principal taxes imposed on businesses operating in Thailand. It applies to both Thai and foreign companies generating income within Thailand. The tax system is governed under the Thai Revenue Code and administered by the Revenue Department.
The standard Corporate Income Tax rate in Thailand is 20% of net profits. However, the applicable tax rate may vary depending on the type and size of the taxpayer.
In addition to the standard CIT framework, Thailand continues to provide several attractive tax promotion schemes in 2026, including incentives under BOI, EEC, and SEZ programs, all designed to strengthen Thailand’s competitiveness and encourage long-term investment.
Tax Benefits for Companies in Thailand
1- Taxation for Startups in Thailand (SME)
Thailand continues to promote itself as a regional startup and innovation hub by offering tax incentives, investment privileges, and government support programs for startups and technology-driven businesses.
To qualify for SME tax privileges, a company must satisfy both of the following conditions:
- Registered capital must not exceed THB 5 million
- Total annual revenue must not exceed THB 30 million
In 2026, Thailand’s startup tax policies focus on promoting: Innovation, Digital transformation, Research and Development (R&D), Foreign investment
Qualified SMEs benefit from progressive tax rates as follows:
- Net profit up to THB 300,000: Corporate Income Tax exemption
- Net profit between THB 300,001 – THB 3,000,000: 15% tax rate
- Net profit exceeding THB 3,000,000: 20% tax rate
These measures are designed to reduce the financial burden for startups and SMEs during their early growth stages.
2- Tax Incentives under the Eastern Economic Corridor (EEC) – 2026
The Eastern Economic Corridor (EEC) covers the provinces of: Chonburi, Rayong, Chachoengsao
The EEC was established to attract: High-value investments, Advanced technology industries and Innovation-driven businesses
Main Tax Incentives
- Corporate Income Tax exemptions on profits generated from promoted activities
- Corporate Income Tax reductions for eligible businesses
- The ability to carry forward losses incurred during the tax exemption period to offset future profits
- Additional deductions for investment expenditures related to business operations
- Additional deductions for transportation, electricity, and water utility expenses
- Additional deductions for infrastructure installation and construction costs
- Dividend tax exemptions
- Exemptions on goodwill, royalties, and certain intellectual property-related income
- Import duty exemptions or reductions for machinery, R&D equipment, export-related goods, raw materials, and necessary production materials
- Export duty exemptions
Non-Tax Incentives
- Rights for foreign investors to own land
- Rights to own condominium units within the EEC area
- Easier procedures for bringing foreign nationals into Thailand
- Simplified work permit procedures for foreign employees and experts
3- BOI Tax Incentives in Thailand – 2026
The Thailand Board of Investment (BOI) remains one of the most important mechanisms under the Thailand 4.0 policy.
Tax Incentives under BOI
- Corporate Income Tax exemption for 3–13 years
- Additional 50% Corporate Income Tax reduction for up to 5 years for certain projects
- Import duty exemptions on machinery
- Import duty exemptions on raw materials used for export
- Additional deductions for transportation, electricity, water supply, infrastructure, R&D, and technology development expenses
Non-Tax Incentives under BOI
- Permission for foreign investors to own land
- Permission to employ foreign experts and skilled workers
- Easier visa and work permit procedures
- Permission to remit foreign currency abroad
Targeted Industries under BOI
- Clean Energy and Environmental Industries
- Electric Vehicle (EV) Ecosystem
- Digital and Cloud Industries
- Digital Platforms
- Digital platform
4- Tax Incentives under Special Economic Zones (SEZ) – 2026
Thailand’s Special Economic Zones (SEZs) were established to promote: Investment, Cross-border trade, Logistics , Industrial development
Main Incentives
- Corporate Income Tax exemptions for up to 8 years
- Additional 50% Corporate Income Tax reduction for up to 5 years in certain cases
- Import duty exemptions on machinery and raw materials for export production
- Additional deductions for transportation, electricity, water supply, and infrastructure expenses
Other Benefits
Additional non-tax benefits include:
- Land ownership rights for foreign investors in certain cases
- Easier visa and work permit procedures
- One-Stop Service support
- Improved customs and logistics procedures
Major SEZ Locations: Tak, Sa Kaeo, Trat, Mukdahan, Nong Khai, Songkhla, Chiang Rai, Nakhon Phanom
In 2026, Thailand continues to offer a broad range of competitive tax incentives and investment promotion measures, including: Special SME tax rates, BOI investment privileges, EEC incentives, SEZ incentives
These measures help businesses reduce operational costs, enhance competitiveness, and create opportunities for expansion both domestically and internationally.
However, proper business structuring and the correct utilization of tax incentives should always be planned carefully with the assistance of legal, accounting, and tax professionals to ensure full compliance with Thai laws and to maximize the available benefits.
If you need to discuss Corporate Taxation and compliance with our Bangkok lawyers, please contact our law firm in Thailand at info@herrera-partners.com
