Corporate tax planning and structures in Thailand

Developing international corporate structures that carry an efficient but appropriate tax treatment is becoming increasingly complex. Worldwide changes continue to flow from the OECD’s Base Erosion and Profit Shifting (BEPS) initiative and the introduction of the Pillar Two global minimum tax. At the same time, national tax policies are changing at an accelerating rate as governments compete for investment, use tax as a trade lever, and seek to capture revenue from digital business. In this environment, sound corporate tax planning is central to building a structure that lasts. 

Tax structuring for market entry into Thailand

The taxation of market entry into Thailand depends heavily on how you choose to establish a presence. A Thai limited company, a branch office, a representative office, and a BOI-promoted company each carry a different tax profile, and the Foreign Business Act shapes which activities a foreign-owned entity may carry out. Getting the structure right at the outset supports the taxation of investment in Thailand over the long term and avoids costly changes once operations are running. Our tax structuring services in Thailand help you weigh these options against your commercial plan, ownership needs, and tax position. 

Assessing the right structure for your Thailand operations

The right structure balances tax efficiency with commercial substance and compliance. We assess the corporate income tax position (Thailand’s headline rate is 20%), withholding tax on cross-border payments, the reporting obligations that come with each vehicle, and the level of foreign ownership permitted for your activities. Where an activity is restricted under the Foreign Business Act, we help you consider routes to greater foreign ownership, such as a Foreign Business Licence, BOI promotion, or, for eligible investors, treaty-based options like the US-Thai Treaty of Amity. This is where practical corporate tax planning in Thailand begins. 

Integrating BOI incentives into an investment structure 

Thailand’s Board of Investment (BOI) offers tax and non-tax incentives, including corporate income tax holidays or reductions, import duty relief, permission for full foreign ownership in promoted activities, and land ownership rights. These incentives can materially change the tax cost of an investment, but they now interact with the Pillar Two global minimum tax: for large multinational groups, a BOI tax holiday can push the effective tax rate below 15% and trigger a top-up tax. We help you factor the BOI’s Pillar Two-aligned measures, including the Qualified Refundable Tax Credit (QRTC), into the structure so that the incentives you rely on remain effective.

Our approach

In this fast-changing environment, we believe in a risk-averse, long-term and sustainable approach to developing corporate structures, rather than being forced to respond to each new piece of legislation or tax court ruling. 

Our global team tracks local tax issues in advance, including disruptive changes such as the OECD’s Pillar Two global minimum tax. This international presence makes Forvis Mazars ideally placed to serve both larger corporations and mid-sized firms undergoing their first international expansion. We also support international groups in resolving tax issues triggered by the OECD BEPS initiative and the EU Anti-Tax Avoidance Directive (ATAD). 

We also offer advice on tax-efficient structures during cross-border acquisitions and disposals, and strategic assistance during international tax field audits. 

Group tax restructuring and business reorganisation 

Group tax restructuring covers the tax consequences of reshaping how a business is owned, financed, and operated, whether that follows an acquisition, a disposal, a supply chain change, or the centralisation of group functions. A reorganisation that makes commercial sense can still create unexpected tax costs if the tax position is not planned in parallel. We help you map the tax effects across each jurisdiction involved and design a structure that supports the operating model rather than working against it. 

Aligning intercompany transactions with the operating model 

Intercompany pricing needs to reflect where value is actually created. In Thailand, companies with annual revenue of THB 200 million or more must file a transfer pricing disclosure form with their annual corporate income tax return, and related-party transactions must be priced on an arm’s length basis. We help you align intercompany charges, service fees, and financing terms with your operating model and Thailand’s transfer pricing rules, so the structure is both defensible and consistent with how the group runs. 

Planning funding, profit repatriation and withholding tax

How you fund an overseas operation and bring profits home has a direct tax cost. Cross-border dividends, interest, and royalties can attract withholding tax, and the rate often depends on whether a double tax treaty applies. We plan funding and repatriation so that debt and equity are balanced sensibly, treaty relief is claimed where available, and withholding-tax exposure is understood before cash starts to move. 

Identifying tax risks before a transaction or reorganisation 

The most costly tax issues are usually the ones found after a deal closes. We carry out tax risk reviews before a transaction or reorganisation, covering permanent establishment exposure, the tax treatment of asset and share transfers, the use of losses, and any triggers under Pillar Two or local anti-avoidance rules. Identifying these points early gives you time to adjust the structure, price the risk into the deal, or prepare the documentation needed to support your position. 

Our services

We offer:

• Strategic advice on tax-efficient yet appropriate and sustainable corporate structures 
• Advice tailored to sectors with specific topics 
• Tax risk assessment and mitigation 
• Outsourced assistance on filing 
• Tax advice in tax field audits, including joint tax audits and the OECD’s International Compliance Assurance Programme (ICAP) 
• Assistance at tax courts 
• Cloud-based tools, including our DAC6 reporting system 
• A Pillar Two centralised software solution for global minimum tax calculations and reporting

FAQs Corporate tax planning and structures in Thailand

Q: When should a business review its corporate tax structure? 

A: A review is often appropriate before entering a new market, acquiring or selling a business, changing a supply chain, centralising group functions, introducing new financing arrangements, or making significant payments between group companies. These are the points at which corporate tax planning adds the most value. 

Q: How to identify tax restructuring opportunities? 

A: Restructuring opportunities usually surface from a structured review of how a group is owned, financed, and operated. We look at the group ownership chart, where profit is earned against where tax is paid, intercompany and financing flows, the effective tax rate by jurisdiction, and how existing incentives such as BOI promotion interact with Pillar Two. We also weigh upcoming changes, such as an acquisition, a disposal, a supply chain shift, or the centralisation of group functions, because these are the moments when reshaping the structure delivers the most value. The aim is to find changes that improve the tax position while keeping the structure commercially sound and compliant.  

Q: Can tax structuring support a regional headquarters or shared-services model in Thailand? 

A: Yes. Tax advisers can assess the tax treatment, operational substance, cross-border payments, incentive considerations and ongoing compliance requirements associated with proposed regional management, service, procurement or financing functions. 

Q: What is the most tax-efficient way to enter the Thai market? 

A: There is no single answer because the taxation of market entry into Thailand depends on your activity, ownership needs and scale. The choice between a Thai limited company, a branch, a representative office and a BOI-promoted company, and whether you route through the Foreign Business Act or BOI promotion, should be assessed together before you commit. 

Q: What information is needed for an initial tax-structuring review? 

A: A useful initial review typically considers the group ownership chart, planned business activities, countries involved, projected transaction flows, financing arrangements, key contracts, expected staffing and any planned acquisition, investment or restructuring timetable. 

Q: How does tax structuring differ from tax compliance? 

A: Tax structuring focuses on assessing and designing the tax implications of a proposed business model, transaction or group arrangement. Tax compliance focuses on meeting recurring filing, reporting, payment and documentation obligations after the structure is in place. 

Q: Can a tax adviser coordinate tax considerations across several countries? 

A: Yes. International structures often require coordinated analysis across the countries where group entities, shareholders, customers, suppliers, employees and financing arrangements are located. Forvis Mazars states that its international tax capability spans 95 countries.