INCOME TAX. Personal Income tax under section 41 of the Revenue Code; an individual Thai citizen or foreigner who lives in Thailand for one or more periods totaling at least 180 days in any tax (calendar) year is, for tax purposes, deemed a resident of Thailand and subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand, and on assessable income derived from foreign sources to the extent that it is brought into Thailand in a year in which income is received.
A non-resident individual is subject to tax only on assessable income from Thai sources, regardless of payment location. Personal income tax is imposed at a progressive rate ranging from 5 percent to 37 percent.
Every person, resident or non-resident, who derives assessable income from employment or business in Thailand, or has assets located in Thailand, is subject to personal income tax, whether such income is paid in or outside of Thailand. Capital gains arising from transfer of assets (like property) is taxable income.
There is no specific capital gains tax in Thailand. Capital gains are subject to tax in the same manner as any other forms of income.
| The net annual income Tax rate; | ||||
| 0 – 50,000 | 0% | 50,000 | = 0 | |
| 50,000 – 100,000 | 5% | 50,000 | = 2,500 | |
| 100,001 – 500,000 | 10% | 400,000 | = 42,500 | |
| 500,001 – 1,000,000 | 20% | 500,000 | =142,500 | |
| 1,000,001 – 4,000,000 | 30% | 3,000,000 | =1,042,500 | |
| 4,000,001 – over | 37% | |||
An individual must file annual income tax returns not later than the end of March of the following year. Half-year income tax returns are required for individuals who earn certain types of income such as rent, professional fees, income from construction, income from sales of goods, etc. The half-year income tax returns must be filed not later than the end of September of the respective tax year. An Individual who fails to file his/her annual tax return is subject to a penalty of twice the amount of the tax due plus a surcharge of 1.5% per month of the tax due. In the case of an improperly filed tax return, the individual will have to pay a one-time penalty in the amount of the tax due and a surcharge of 1.5% per month of the tax due.
Examples of taxable income are: wages paid in Thailand, wages paid abroad as a result of work in Thailand, pensions and retirement pay, income (wages, interest, dividends, etc.) from abroad brought into Thailand in the year earned. This applies only to those who reside in Thailand for a total of 180 days or more in any one taxable calendar year and the retirement pay or income coming from a country not having a Double Taxation Treaty with Thailand.
The general principle is that the country in which the income arises (source country) has the prior right to tax and the country of residence will grant a relief (tax exemption or tax credit) from paying taxes twice on the same income. In addition, the treaties also provide for cooperation between governments in preventing the evasion of taxes.
- Source: Thailand Revenue Department
Countries Having Double Tax Treaties with Thailand Australia, Austria, Bangladesh, Belgium, Bulgaria (Rep.), Canada, China (People’s Republic of China), Cyprus (Rep.), Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Indonesia, Israel, Italy, Japan, Korea (Rep.), Laos, Luxembourg, Malaysia, Mauritius, Nepal, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Romania, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, United Arab Emirates, United Kingdom, U.S.A., Uzbekistan, Vietnam.
