ภาษีธุรกิจคลินิก โรงพยาบาล

Taxation for Clinics

Clinic management—whether for a general medical clinic, dental clinic, or aesthetic clinic—involves more than just maintaining high standards of care. Taxes are one of the most significant hidden costs. Poor tax planning can wipe out nearly half of your profits or even result in costly penalties and backdated fines.

This article provides a comprehensive overview of clinic business taxation in one place, helping you plan effectively and manage your finances with confidence.

An In-Depth Guide to Clinic Business Taxes: What Every Owner Needs to Know

Clinic taxation is divided into two main categories based on the business registration structure: individual (sole proprietor) and juristic person (corporate entity). Each structure has clear and significant differences in tax treatment and obligations.

1. Income Tax

This is the main tax calculated from your clinic’s profit or income, divided into two structures:

1) Operating as an Individual (Sole Proprietor)

Suitable for small clinics with annual revenue not exceeding 2–3 million THB.

Income Type:
- Section 40(6) – Professional services (medical practice)
- Section 40(8) – Commercial income (e.g., medication sales or overnight beds)
Expense Deduction:
- 40(6): 60% standard deduction
- 40(8): 60% standard deduction or actual expenses (detailed records required)
Tax Rate: Progressive 5%–35%
If net income exceeds 5 million THB, the rate rises to 35%, which may be higher than corporate tax.

2) Operating as a Juristic Person (Company / Limited Partnership)

Suitable for higher-revenue clinics or multiple shareholders.

Tax Calculation: Based on net profit (revenue minus actual expenses)
Tax Rate:
- SME (capital ≤ 5M THB, revenue ≤ 30M THB)
  - First 300,000 THB: Exempt
  - 300,001–3,000,000 THB: 15%
  - Over 3,000,000 THB: 20%
- Non-SME: 20% flat rate
Key Advantage:
All business expenses—staff salaries, rent, utilities, medical equipment depreciation—are tax deductible.

2. Value Added Tax (VAT)

This is one of the most common areas of confusion, as healthcare businesses receive special VAT exemptions.

Medical treatment services
Revenue from medical treatment is VAT-exempt by law, regardless of whether annual income exceeds 1.8 million THB.

Product sales & aesthetic services
Revenue from selling vitamins, supplements, cosmetics, or take-home products is subject to VAT. If this portion exceeds 1.8 million THB per year, VAT registration is required and 7% VAT must be applied.

Important for aesthetic clinics:
Procedures performed purely for cosmetic purposes (non-medical treatment) may be considered VAT-liable, depending on service classification and invoicing. Professional accounting advice is highly recommended.

3. Withholding Tax

In your role as a clinic owner—especially as a juristic entity—you act as an intermediary, withholding tax from certain payments and remitting it to the Revenue Department.

Common Withholding Tax Rates

Office/Building Rent: 5%
Professional Fees (e.g., doctor service fees / DF payments): 3%
(Typically classified as professional income under Section 40(6))
Service Fees / Contracted Work (e.g., cleaning staff, marketing services): 3%
Advertising Expenses (e.g., Facebook, Google, signage): 2%
Dividend Payments to Shareholders: 10%

4. Other Relevant Taxes

In addition to the main taxes, clinics should also manage the following:

1) Signboard Tax

Calculated based on sign size (width × height) and language used.

Thai only: Lowest rate
Thai with English (Thai above): Medium rate
English only, or Thai below English: Highest rate
(e.g., 40 THB per 500 sq.cm.)

2) Land and Building Tax

If you own the building used for your clinic, this tax is payable annually based on the appraised value under the commercial property rate.

3) Stamp Duty

Applicable to certain agreements, such as:

Lease agreements (1 THB per 1,000 THB of rent)
Service or work contracts

Conclusion: Should You Register a Company or Operate as an Individual?

Choose Individual (Sole Proprietor):
When you are just starting out, revenue is still uncertain, you want minimal paperwork, and you are comfortable with the 60% standard expense deduction.
Choose a Company (Juristic Entity):
When revenue reaches 2–3 million THB or more, you have multiple partners, want to deduct actual expenses, and seek stronger business credibility.

💡 Additional Advice for Clinic Owners

Maintain clear and accurate income–expense records from day one. Avoid mixing personal and business accounts. If your clinic is ever audited, having transparent and well-documented financial records can significantly reduce complications and potential penalties.