Personal Tax Rates

Personal Income Tax Rates in Thailand

Personal Income Tax in Thailand is levied on every individual, resident or non-resident, who derives assessable income from employment or business in Thailand, or has assets located in Thailand, whether such income is paid in or outside of Thailand.

Exemptions are granted to certain persons, including United Nations. Officers, diplomats and certain visiting experts, under the terms of international and bilateral agreements.

An individual who lives in Thailand for more than the period or periods totaling at least 180 days in any tax (calendar) year is deemed to be a resident of Thailand. He is subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand.

If the Corporate taxpayer fails to file a tax return, late filing or filing a return containing false or inadequate information may subject the taxpayer to various penalties. Failure to file a return, and sub-sequent non-compliance with an order to pay the tax assessed, may result in a penalty equal to twice the amount of tax due. Penalties are due within 30 days of assessment. An annual income tax return must be filed within 150 days after the end of each accounting period, and must be accompanied by audited financial statements.

Tax is levied as follows

• Wages paid in Thailand or abroad
• Income earned by a person who resided in Thailand for a total of 180 days
• Housing and meal allowances or their value
• School fees for dependents paid for by employer
• Cost of home leave for taxpayer and dependents
• Capital gains arising from transfer of assets
• Pensions and retirement pay brought into Thailand
• Royalties

The tax due is assessed on the net taxable income at progressive rates ranging from 5% to 37%.

In contravention with the provisions of the Tax law if an individual fails to file his/her annual tax return is subject to a penalty of twice the amount of the tax due plus a certain percentage of surcharge on monthly basis of the due amount. In the case of improperly filed tax return, the individual will have to pay a one-time penalty in the amount of the tax due and with a certain percentage of monthly surcharges.

Tax Treaties

Currently, Thailand has concluded tax treaty agreements with 49 countries: Armenia, Australia, Austria, Bangladesh, Bahrain, Belgium, Bulgaria, Canada, China P.R., Cyprus, Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Indonesia, Israel, Italy, Japan, Korea, Laos, Luxembourg, Malaysia, Mauritius, Nepal, the Netherlands, New Zealand, Norway, Oman, Pakistan, the Philippines, Poland, Romania, Singapore, Slovenia, South Africa, Spain, Srilanka, Sweden, Switzerland, Turkey, Ukraine, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, United States of America, Uzbekistan, and Vietnam.