MBMGL A W O F F I C E

�ailand - Reduced corporate tax rates

In preparation for the implementation of the ASEAN Economic Community in 2015 and to promote �ailand’s international competitive-ness the Government has acted to reduce corporate income tax rates with immediate e�ect for the 2012 tax year.

1. General principle for companies and partnerships In general the maximum rate of income tax for companies and partnerships is reduced as below although for smaller and some listed compa-nies, lower rates apply with immediate e�ect for the 2012 tax year.

2012 Maximum corporate income tax rate: 23% 2013-2014 Maximum corporate income tax rate: 20% 2. Small companies and partnerships Small companies and partnerships with paid capital of less than THB 5,000,000 at the end of each accounting period and with revenue from sales of goods and services of not more than THB 30,000,000 are now subject to the following tax rates:

�erefore, in contrary, from 1st January 2012, Any company with paid-up capital less than 5 million baht at the end of each accounting period or revenue from sales of goods and services not exceeding THB 30 million, the rate of income tax of normal rate, if the company registered before the end of year of 2009, the rate of income tax shall entitled to the bene�t as the former laws which is Royal Decree No. 471/2007.

Legal UpdateMar 2012

- Net taxable profit not exceeding THB150,000: exemption from corporate tax

- Net taxable profit over THB 150,000 butnot exceeding THB 1,000,000: 15% tax rate.

- For net taxable profit of more than THB1,000,000 : 23% tax rate

- Net taxable profit not exceeding THB150,000: exemption from corporate tax

- Net taxable profit over THB 150,000 butnot exceeding THB 1,000,000: 15% tax rate.

- For net taxable profit of more than THB1,000,000 : 20% tax rate

2012

2013-2014

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Disclaimer:

Mr. �ammarat SangchanAttorney-at-LawTel: +66(0)2 665 2534-9 ext. 111E-mail: thammarat@mbmg-internaitonal.com

Ms. Usa SuwanchateeCPATel: +66(0)2 665 2534-9 ext. 121E-mail: sa@mbmg-international.com

Contact:

MBMG Tax Services:In addition to the legal services provided by MBMG Law O�ce, MBMG Group provides tax and accounting services through MBMG Accounting And Tax Advisory Services Co., Ltd. MBMG Accounting And Tax Advisory Services Co., Ltd can assist in conducting a full tax review of your business and determine the most e�cient tax structure for you as well as ensuring compliance with existing tax policies and procedures.

MBMG Legal UpdateMar 2012

3. Companies listed in stock exchange

Companies listed on the Stock Exchange of �ailand (SET) are subject to tax rates of 23% and 20% respectively for the 2012 and 2013-14 �nancial years.

�ose companies listed on the Market for Alternative Investments (MAI) and which are subject to the lower 20% tax rate pursuant to Royal Decree No. 467/2006 (as amended by Royal Decree No. 474/2007), continue to enjoy the 20% tax rate for 2012. Other companies listed on the are subject to a tax rate of 23% in 2012 reducing to 20% for 2013-14.

Summary of new tax rates

2012 2013 2014 Law

1. Companies and partnerships in general 23% 20% 20% Royal decree No. 530/2011

- Net taxable profit not exceeding THB 150,000 exemption from corporate tax

-

- Net taxable profit less than THB 1,000,000: 15%

-

- Net taxable profit > THB 1,000,000 : 23%

-

3. Company newly listed in Market for alternative Investment (MAI)

- 20% 20% -

3.1 Entitled to reduced rate pursuant to Royal decree 467/ 2004

20% 20% 20% Royal decree 467/2006

3.2 Not entitled to reduced rate 23% - - +Royal decree 474/2007

4. Companies listed on Stock Exchange of Thailand (SET)

23% 20% 20% +Royal decree 530/2008

2. Small Companies

- Net taxable profit not exceeding THB 150,000, exemption from corporate tax

- Net taxable profit less than THB 1,000,000: 15%

- Net taxable profit > THB 1,000,000 : 20%