Note: In Thailand, a personal allowance of 60,000 Thai baht is automatically deducted from your taxable income
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 in Thailand
Progressive personal income tax rates applicable to taxable income are as follows
| 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% |
Frequently asked questions about personal income tax in Thailand
To calculate income tax in Thailand, add up your total income, subtract any deductions or allowances, and apply the appropriate tax bracket. The tax rates range from 0% to 35%, depending on your income level. Income tax in Thailand is progressive. For individuals, the rates are: The amount of income tax you need to pay depends on your total income after allowances and deductions. Thailand uses a tiered tax system, where higher incomes are taxed at higher rates, starting at 5% and going up to 35%. Income tax in Thailand is a tax imposed on both residents and non-residents, with rates based on a progressive scale. Residents are taxed on worldwide income, while non-residents are taxed only on income sourced in Thailand. Yes, Thailand allows deductions for various expenses, such as personal allowances, life insurance premiums, and donations. These deductions can reduce the taxable amount, lowering the income tax payable. Utilise tax-advantaged investment options: Consider investing in retirement savings plans, provident funds, long-term equity funds (LTFs), or retirement mutual funds (RMFs). These options provide tax benefits, including deductions or exemptions on both contributions and any returns earned from the investments. In Thailand, individuals are eligible for several tax-free allowances. The taxpayer receives an allowance of THB 60,000, and if the spouse has no income, an additional allowance of THB 60,000 is provided. For each legitimate child of the taxpayer or their spouse, a tax-free allowance of THB 30,000 is granted, with no limit on the number of children. Furthermore, an additional allowance of THB 30,000 is available for each child from the second onwards, provided they were born in or after 2018. These allowances help reduce taxable income, offering significant tax relief. If a foreigner earns income from sources outside of Thailand, this income will be subject to Thai income tax if two conditions are met: the income is earned in a tax year starting from 1 January 2024 or later, and the foreigner resides in Thailand for 180 days or more within that tax (calendar) year. This new regulation applies to foreigners meeting these criteria. You can stay in Thailand for up to 179 days in a calendar year without being considered a tax resident. If you stay 180 days or more, you are classified as a tax resident and may be required to pay taxes on both your Thai and foreign-sourced income. Yes, both resident and non-resident expats who earn income from sources within Thailand are required to pay personal income tax (PIT).How do I calculate income tax in Thailand?
What are the income tax rates in Thailand?
- 0% for income up to THB 150,000
- 5% for THB 150,001 to THB 300,000
- 10% for THB 300,001 to THB 500,000
- 15% for THB 500,001 to THB 750,000
- 20% for THB 750,001 to THB 1,000,000
- 25% for THB 1,000,001 to THB 2,000,000
- 30% for THB 2,000,001 to THB 5,000,000
- 35% for income above THB 5,000,000How much income tax do I need to pay in Thailand?
What is income tax in Thailand?
Are there any deductions available for income tax in Thailand?
How can I save tax on my salary in Thailand?
What is the tax free allowance in Thailand?
What is the new tax law in Thailand in 2024 for foreigners?
How long can I stay in Thailand without paying taxes?
Do expats pay income tax in Thailand?
Guides on personal income tax in Thailand
- Thailand income tax for foreigners
- Taxes guide for expats living in Thailand
- Common mistakes when doing taxes in Thailand