A digital marketing agency is one of the fastest-growing service businesses in Thailand, and many are run by foreigners. Getting the accounting and tax right from day one protects your margins, keeps you clear of penalties and makes the business easier to grow or sell. This guide covers structure, bookkeeping, VAT, withholding tax and income tax for agencies in Thailand.
Business setup and structure
Choosing the right structure
You can operate an agency in three main ways:
- Individual (sole proprietor) or freelancer
- Partnership
- Limited company
The choice affects how you are taxed, whether you need audited accounts and, for foreigners, work permit and shareholding questions. See our company registration service for help setting up.
Accounting management
Key accounting documents
Businesses must keep accounts and supporting documents and retain them for at least five years (Accounting Act B.E. 2543 (2000), Sections 8, 9, 12 and 14). An agency should keep:
- Tax invoices and receipts
- Invoices
- Receipt and payment vouchers
- Service agreements
- Input and output VAT reports
A company must also prepare financial statements and file them with the Department of Business Development (DBD) (Accounting Act B.E. 2543 (2000), Section 11). Every limited company’s accounts must be audited by a Thai certified public accountant (Civil and Commercial Code, Section 1196), approved at the shareholders’ meeting within four months after year-end (Civil and Commercial Code, Section 1197) and filed with DBD within one month after that meeting. See our audit and bookkeeping services.
Revenue recognition
For corporate income tax, net profit is revenue less expenses on an accrual basis (Revenue Code, Section 65). Track these typical agency income streams separately:
- Digital marketing service fees
- Website development income
- Social media management income
- Commission from media buying
VAT and withholding tax
VAT
- Registration: you must register once annual turnover exceeds THB 1.8 million, within 30 days (Revenue Code, Sections 81/1 and 85/1).
- Rate: the statutory rate is 10%, currently reduced to 7% by Royal Decree (Revenue Code, Section 80 and Royal Decree (No. 807), extended until 30 September 2027).
- When VAT arises on services: at the earliest of receiving payment, issuing the tax invoice or the service being used (Revenue Code, Section 78/1).
- Tax invoices: must contain the required details and be issued on time (Revenue Code, Sections 86 and 86/4).
- Input VAT: not all input VAT can be claimed, for example on entertainment or invalid tax invoices (Revenue Code, Section 82/5).
- Monthly return: PP.30 by the 15th of the following month (Revenue Code, Section 83). E-filing currently gets 8 extra days, extended until 31 January 2027 (Ministry of Finance notification).
“tax liability for provision of services […] shall take place at the time of receiving payment of services performed, except in the case where the following events take place before receiving the payment […] (a) issuance of tax invoice; or (b) use of services”
Revenue Code, Section 78/1(1) — Revenue Department unofficial English translation
Advertising bought from Google, Meta and other foreign platforms
Agencies often pay foreign platforms. For services from abroad used in Thailand, the Thai buyer generally self-assesses VAT and files PP.36 by the 7th of the following month (Revenue Code, Section 83/6). Foreign e-service providers such as Google and Meta have had to register for VAT on sales to consumers since 1 September 2021 (Revenue Code Amendment Act (No. 53) B.E. 2564), but a VAT-registered Thai business still self-assesses unless it receives a Thai tax invoice.
“Where the payment of goods or services is made to the following business persons, the payer for goods or services shall be required to remit value added tax […] (2) business person providing services abroad and such service is used in Thailand”
Revenue Code, Section 83/6 — Revenue Department unofficial English translation
Withholding tax
A company paying service fees must generally withhold tax (Revenue Code, Section 3 terdecim and Departmental Order Tor.Por. 4/2528). Rates under that Order include 2% for advertising fees (for example, producing and placing ads) and 3% for other services such as consulting, content or management fees. Returns are due by the 7th of the following month: PND.3 if the payee is an individual and PND.53 if a company. Payments abroad go through PND.54 (Revenue Code, Section 70).
Income tax
Income tax comparison
| Item | Individual (sole proprietor) | Company or partnership |
|---|---|---|
| Tax base | Assessable income less expenses and allowances | Net profit (revenue less expenses) |
| Tax rate | Progressive 0–35% (Revenue Code, Section 48) | 20% standard rate (Revenue Code, Section 67); reduced SME rates may apply |
| Expense deductions | Deemed expenses at a percentage set by income type, or actual expenses with evidence | Actual expenses with evidence, subject to Revenue Code, Sections 65 bis and 65 ter |
Small companies (paid-up capital of THB 5 million or less and revenue of THB 30 million or less) pay 0% on the first THB 300,000 of profit, 15% on THB 300,001–3,000,000 and 20% above that (Royal Decree No. 530 (B.E. 2554), as amended).
Non-deductible expenses include reserves, fines and surcharges, capital expenditure, and expenses without an identifiable payee (Revenue Code, Section 65 ter). Entertainment is capped at 0.3% of revenue or paid-up capital, whichever is higher, up to THB 10 million (Ministerial Regulation No. 143 (B.E. 2522)).
Companies file a half-year estimate (PND.51) within two months after the first six months (Revenue Code, Section 67 bis) and the annual return (PND.50) within 150 days after year-end (Revenue Code, Sections 68 and 69). Late payment carries a surcharge of 1.5% per month (Revenue Code, Section 27).
Personal income tax rates
Individuals are taxed on net income at progressive rates (Revenue Code, Section 48). Which category of income (Revenue Code, Section 40) and which deemed-expense percentage applies to freelance agency work depends on how the work is carried out. The annual return PND.90 is due by 31 March and the half-year PND.94 by 30 September (Revenue Code, Sections 56 and 56 bis).
| Net income (THB) | Tax rate (%) |
|---|---|
| 0 – 150,000 | Exempt |
| 150,001 – 300,000 | 5 |
| 300,001 – 500,000 | 10 |
| 500,001 – 750,000 | 15 |
| 750,001 – 1,000,000 | 20 |
| 1,000,001 – 2,000,000 | 25 |
| 2,000,001 – 5,000,000 | 30 |
| 5,000,001 and above | 35 |
Tax planning
Compare structures
- Compare the total tax burden of each structure at your expected profit level
- Weigh the pros and cons, including audit and filing obligations
Our tax planning team can model this for you.
Manage income and expenses
- Plan when revenue is recognised
- Manage expenses so they are deductible and properly documented
- Keep personal and business accounts separate
Accounting systems and software
Choosing accounting software
Cloud-based accounting software lets you see sales data in real time and makes VAT and withholding tax filing much easier.
Cautions and recommendations
- Keep business and personal accounts separate
- Use clear service agreements
- Issue tax invoices correctly and on time
- Follow up on client payments
- Consult accounting and tax experts. If you employ foreign staff, see payroll and work permits
Summary
Accurate accounting and tax are the foundation of a digital marketing agency. Put proper systems in place early, comply with VAT, withholding tax and filing deadlines, and ask an expert whenever you are in doubt.
FAQ
When must a digital marketing agency register for VAT?
When annual turnover exceeds THB 1.8 million. You must register within 30 days of exceeding it (Revenue Code, Sections 81/1 and 85/1).
Do we owe VAT on Google or Meta advertising costs?
Often yes, through self-assessment. A VAT-registered Thai business buying services from abroad generally files PP.36 by the 7th of the following month (Revenue Code, Section 83/6), unless the provider issues a Thai tax invoice.
Does a limited company need audited accounts?
Yes. Every limited company’s financial statements must be audited by a Thai certified public accountant (Civil and Commercial Code, Section 1196) and filed with DBD.
What corporate tax rate applies to a small agency?
The standard rate is 20% (Revenue Code, Section 67). A qualifying small company pays 0% on the first THB 300,000, 15% up to THB 3 million and 20% above (Royal Decree No. 530 (B.E. 2554), as amended).
Legal references
- Revenue Code, Section 27 – surcharge on late payment
- Revenue Code, Sections 40, 48, 50, 56 and 56 bis – personal income tax, rates, withholding and returns
- Revenue Code, Sections 65, 65 bis, 65 ter, 67, 67 bis, 68, 69 and 70 – corporate income tax, deductible expenses, returns and withholding
- Revenue Code, Section 3 terdecim – withholding tax orders
- Revenue Code, Sections 78/1, 80, 81/1, 82/5, 83, 83/6, 85/1, 86 and 86/4 – VAT
- Revenue Code Amendment Act (No. 53) B.E. 2564 – VAT on foreign e-services
- Royal Decree (No. 807) – reduced 7% VAT rate, extended until 30 September 2027
- Royal Decree No. 530 (B.E. 2554), as amended – SME corporate income tax rates
- Ministerial Regulation No. 143 (B.E. 2522) – entertainment expense cap
- Departmental Order Tor.Por. 4/2528 – withholding tax rates
- Accounting Act B.E. 2543 (2000), Sections 8, 9, 11, 12 and 14 – bookkeeping, financial statements, supporting documents, record retention
- Civil and Commercial Code, Sections 1196 and 1197 – audit and approval of company accounts
- www.rd.go.th
Official sources (Thai government websites, mostly in Thai)
- Royal Decree No. 807 (B.E. 2569) – VAT 7% extended to 30 September 2027 (Royal Gazette, 23 Aug 2026)
- Ministry of Finance Notification on extending e-filing deadlines by 8 days (No. 7, as amended) – filings due up to 31 January 2027
- Departmental Order Tor.Por. 4/2528 – withholding tax rates (e.g. hire of work 3%, advertising 2%, rent 5%, transport 1%)
- Royal Decree No. 530 (B.E. 2554) – SME corporate income tax rates
- Revenue Department CIT guide for SMEs (paid-up capital ≤ 5M, income ≤ 30M THB)
- Ministerial Regulation No. 143 – entertainment expense cap (0.3%, max 10M THB)
- Revenue Department guide – VAT on foreign e-services; VAT-registered buyers still file PP.36
- Accounting Act B.E. 2543 (Department of Business Development)
- All documents above are published on the Revenue Department of Thailand website (search by document name or number).
Need help? Talk to an English-speaking accountant — call +66 96 969 8592 or message us on LINE.
This article is general information as of September 2026, not tax advice. Thai-language law prevails.
