Thailand Income Tax for Foreigners
Learn how much of your income do you need to spend on income taxes and other fees in Thailand?
What is a personal income tax?
Personal Income Tax (PIT) is a direct tax imposed on a person’s earnings, the amount of which is determined using a progressive rate schedule by Thailand’s Revenue Department. The two types of taxpayers are residents and non-residents. For personal income tax purposes, a person who has lived in Thailand for more than 180 days in a calendar year is considered a “resident.”
All earnings that are considered available and accessible, including non-cash fees such as lodging or the use of a vehicle, are included in personal income tax. Work-related earnings, earnings from a long-term position, royalties and dividends income, rental agreements produce revenue, construction work income, and any business’s sales are all examples of personal income tax in Thailand.
Key Points
- Any Expat working in Thailand is required to have his or her own tax identification number.
- The term “personal income tax” refers to all earnings that are considered assessable.
- All types of earnings are taxable and fall into the personal income tax bracket.
What is the foreign worker’s income tax rate in Thailand?
If you have a work permit in Thailand and are paying taxes, make sure the taxes you’re paying are right. For expat taxes in Thailand, rates vary depending on your personal income. The rates are graduated, ranging from 0% for those earning less than 150,000 baht to 35% for those earning more than 5,000,001 baht. Here is the table of Thailand’s income Taxes
Taxable Income (baht) +Tax (%)
0 – 150,000 – Exempted
150,000 but less than 300,000 – 5%
300,000 but less than 500,000 – 10%
500,000 but less than 750,000 – 15%
750,000 but less than 1,000,000 – 20%
1,000,000 but less than 2,000,000 – 25%
2,000,000 but less than 4,000,000 – 30%
Over 4,000,000 – 35%
Anyone who has lived in Thailand for more than 180 days is considered a citizen and must pay taxes on all income received both within and outside the country.
Personal allowances in Thailand
Individual taxpayers will receive a 30,000 baht allowance, unemployed taxpayers’ spouses will receive a 30,000 Baht allowance, and children (under 25 years old, enrolled in an educational institution) will receive a 15,000 baht allowance per child, up to a maximum of 3 children.
Contributions to a Provident/Retirement Mutual Fund (RMF) with any amount paid up to 15% of salary not exceeding 500,000 baht in a tax year, contributions to a Long Term Equity Fund (LTF) with any amount paid up to 15% of wage not exceeding 500,000 baht in a tax year. Aside from Thai citizens, LTFs and RMFs can benefit many foreigners who have a long-term commitment to Thailand through work, marriage, or lifestyle.
Tax rates in Thailand differ from person to person as they are based on your personal income.
What is meant by “deductible expenses”?
Your job and copyright earnings are both tax deductible up to a total of 60,000 baht per year in deductible expenses. Rental income with real and appropriate expenses or a lump-sum deduction of 10% to 30% depending on the type of rented property, and copyright and other rights income 50% of assessable income but not more than 100,000 baht.
Profits from non-compliant hire-purchase or instalment sales contracts that have deductible expenses for a lump-sum deduction of 20% and income from liberal professions that have deductible expenses for a lump-sum deduction of 30% (except for the medical profession whereby 60% is allowed)
Income derived from a contract of work in which the contractor provides necessary materials other than equipment with a deductible expense of 70% and the income derived from business, trade, agriculture, industry, transportation or any other income not stated above with a deductible expense of 65% to 85% depending on the types of income.
What documents do I need to get a tax ID number?
You’ll need to bring the following documents to the tax office to apply for a Tax Identification Number (TIN):
– Valid passport with a valid visa or visa exemption
– Lease agreement of six months or more, with a copy of the landlord’s ID
– Proof that you spent at least 180 days in Thailand in the previous 365 days (past entry stamps on passport)