TAXABLE PERSON / INCOME TYPE & DEDUCTION / TAX RATE
(1) TAXABLE PERSON
● A resident will be taxable on income from all sources in Thailand on a cash basis regardless of where the money is paid, and on the portion of income that is brought into Thailand in the same year that it is earned.
● A non-resident is only taxable on income from sources in Thailand. (Person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year.)
● Taxable income covers both cash and benefits in kind and includes income from employment, hire of work, receipts from copyright, interest, dividends, capital gains and the letting of property.
(2) INCOME TYPE & DEDUCTION
Income type | Deduction from Income subjected to Tax |
---|---|
1. Salary, Wage, Bonus, Fixed allowance 2. Income from personal services rendered to employers | 50% not over 100,000 Baht : Combining Income type 1 & 2 : Deduction must not exceed 100,000 Baht |
3. Income from goodwill, copyright, franchise, other rights | 50% not over 100,000 Baht |
4. Income from annuity or income in the nature of yearly payments : Dividends, interest on deposits with banks in Thailand : Shares of profits or other benefits from a juristic company : Juristic partnership, or mutual fund, payments received as a result of the reduction of capital, a bonus, an increased capital holdings, gains from amalgamation, acquisition or dissolution of juristic companies or partnerships, and gains from transferring of shares or partnership holdings | Undeductable |
income from letting of property and from breaches of contracts, installment sales or hire-purchase contracts: – Residential properties – Agricultural – Land – Vehicle – Other assets | Actual or lumsum of : 30% : 20% : 15% : 30% : 10% |
6. Income from liberal professions – Art, Law, Enginering, Architect, Accounting | Actual or lumsum of : 60% : 30% |
7. Contractor services | Actual or lumsum 60% |
8. Other income type apart from items 1-7 * | Actual or lumsum 40% and 60% |
(3) TAX RATE
Progressive personal income tax rates applicable to taxable income are as follow
Range of net Income | Tax Rate | |
---|---|---|
Min | Max | |
1 | 150,000 | 0% |
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% |
> 500,0001 | – | 35% |