Income tax in Thailand
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Updated 7 months ago

Thailand is not a tax haven. In Thailand, there are two main types of taxpayer — resident and non-resident. A resident is a person who resides in Thailand for more than 180 days in a calendar year, and a resident is liable to pay tax on any income earned in Thailand, as well as on a portion of any income that is brought into Thailand from overseas. However, a non-resident is only subject to tax on income that is earned in Thailand.

The Thai tax system

Everyone has tax liability in Thailand and it has double tax treaties with many countries, so even if you are a digital nomad working remotely in Thailand as a web developer or blogger, you will need to pay tax in Thailand if you aren't paying tax in your home country.

Income tax in Thailand is based on assessable income, which covers employment salary, professional fees, interests, dividends and capital gains on securities, any royalties, rental of property, and income from consulting or contracting. Basically, most forms of earnings over THB150,000 per year are taxable in Thailand.

Requirements

The Thai tax year runs from January 1st to December 31st. It is a taxpayer's duty to register for a tax identification number, which you should apply for at your nearest revenue office within 60 days of receiving your first salary, by submitting your passport and proof of address along with the application form. You will then be required to file your income tax returns and pay tax to the revenue department by March 31st for each previous tax year, and there are penalties if you delay the process or make a late payment. As a taxpayer, you must also notify the revenue department officers of any changes in circumstance, and you may be expected to provide additional documents or information at any point and comply with any summons.

If you fail to pay the total sum required, some of your assets could be seized and sold without a court decision. The money raised from the sale will pay any overdue tax arrears.

Foreigners should note that when renewing work permits, they will need to show a copy of their tax submission for the previous year. Some companies handle these for their employees, so if you are working, better to ask the Thai HR on how to handle this tax, whether you will pay it or they will handle it for you.

Tax exemptions and rates in Thailand

  • Expats earning less than 150,000 Baht are exempt from income tax.

  • Expats earning more than 150,000 Baht but less than 500,000 Baht will be taxed at 10%.

  • Expats earning more than 500,000 Baht up to 1 Million Baht will be taxed at 20%.

  • Over 1 Million but less than 4 Million Baht will be taxed at 30%.

  • Over 4 Million Baht will be taxed at 37%.

If you earn less than THB150,000, you are exempt from having to pay tax in Thailand. Thailand has progressive tax rates that increase with regard to earnings. As of 2017, this starts at 5% if you earn between THB150,00 and THB300,000, and increases gradually until the highest tax bracket in which you will have to pay 35% if you earn over THB5 million per year.

Certain deductions and tax exemptions are allowed when calculating your taxable income, so it is advisable to confer with an accountant in Thailand if you aren't on PAYE with a company and are required to file your own returns. Tax returns also need to be reported in Thai, so this will help you to overcome the language barrier.

Collection of taxes is very common all over the world. So if you are planning to move and relocate to another country, make sure to know their taxation process before moving so it could help you decide better.

Useful links:

Thai Revenue Department ' Personal Income Tax
Thai Revenue Department ' Types of taxes
Thai Revenue Department ' Corporate Income Tax

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