Both residents (people residing in Thailand for a period or periods aggregating more than 180 days per tax year) and non-residents are obligated to apply for a personal income tax ID.
Residents have to pay taxes on all the earnings derived from:
*Income generated by non-residents is only subject to the personal income tax if the advantages are received in Thailand.
The assessable income is classified into eight categories:
*As specified in the fourth point, capital gains are taxable as ordinary income. As is the case in many countries, capital losses cannot be offset against the capital gains.
There are three exceptions to the taxability of the capital gains:
Several deductible expenses and allowances are available to lessen the personal income tax burden.
The following may be deducted from the assessable income:
Thailand tax law also foresees different allowances:
Apart from these personal allowances, multiple specific allowances can be deducted:
The personal income tax system is progressive:
|Taxable Income (in THB)||Tax Rate|
|0 – 150,000 (189,999 for 65+ years old individual)||Exempted|
|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 – 4,000,000||30%|
However, if assessable income amounts to more than 60,000 THB per year, the taxpayer has to multiply the assessable income with 0.5%. According to the progressive tax rate if the total amount is more than the payable amount, then that amount will remain due, else the amount resulting in a higher taxable base – will be applicable.
For certain types of income, taxes have to be withheld at the source and submitted to the District Revenue Office. For the receiver of the income, the tax withheld will be credited against the tax liability at the end of the year.
There are different rates of withholding tax depending on the sort of income, for example:
|Type of income||Withholding tax|
|Income from employment||0-35%|
|Income from rent||Resident: 5% | Non-resident: 15%*|
|Income from hire of work and professional fees||Resident: 3% | Non-resident: 15%*|
|Public entertainment remuneration||Residents: 5% | Non-residents: 0-35%*|
*The exact percentage may vary depending on double tax agreement between Thailand and the foreign national’s country.
All companies employing more than ten employees are obliged to make a contribution to the Provident Fund. Compensation can be claimed from this fund in case of, amongst others, retirement or death during the employment. The compensation amounts to the total of the contributions made by the employee and employer, as well as the benefits accrued on it.
Each company and employee are also duty-bound to make contributions to the Social Security Fund. The contribution amounts to 5% of the total salary but does not exceed 750 THB. In many countries, this fund serves for example for those who are injured, sick, disabled, or on maternity leave. Child welfare and unemployment (50% of the salary for a maximum of 180 days) are paid out of this fund as well.
Companies employing more than ten employees also have to pay a contribution to the Workmen’s Compensation Fund, amounting to between 0.2% and 1% of the annual salary of the employee (depending on the assessed risks of the work). In case of injury, sickness, disablement or decease, the employee or the heirs will receive compensation (60% of the monthly salary) and reimbursement of certain costs out of this fund.
The tax year for personal income tax simply follows the calendar year ending with December 31. As such tax filings and payments must be completed by March 31 of the following year (PND 90 or 91). Personal income tax filings may be done on paper or by electronic form. For income generated from hiring out a property, liberal professions and all other income that falls within the scope of point (8), the taxpayer needs to file a half-yearly tax return on September 30. These taxes may be set off at the end of the tax year as tax credits.
In case of an inaccurate return, a penalty of 100% may be imposed. The penalty for not filing a return amounts to 200%. These penalties may be reduced with 50% by the officer at the Revenue Department if he/she can prove that there was no intention to evade taxes.
Contrary to the personal income tax, the employer is responsible for the payment of the withholding tax, social security fund, and provident fund contributions. Social security contributions have to be paid within 15 days after the end of the months, and payments to the Provident Fund have to be done within 3 days post transfer of the salary (SPS 1-10). Withholding tax becomes due on the 7th day of the following month (PND 1).