Latest Tax Rules in Thailand 2025

As Thailand’s tax season approaches, the government has tightened its tax regulations to align with international standards. Individuals who have to pay taxes, such as those who are employed at a Thai company or profiting from renting properties, will have to comply with these tax guidelines or risk possible legal ramifications. An individual who stays in Thailand for at least 180 days out of a calendar year (consecutively or not) will be classed as a “tax resident” and must file a tax return.

This includes expats, who are also liable to pay taxes if they receive sufficient assessable income, and exemptions apply only in limited circumstances. While the tax filing deadline is not until March next year, understanding the tax rules in 2025 is essential to avoid expensive problems with the Revenue Department.

This page will examine the tax rules in 2025 and how taxpayers can legally reduce the amount of taxes they owe.

Personal Income Tax Rules in Thailand

Every tax resident of Thailand must file an income tax return, but only those earning a minimum level of income will be required to pay personal income taxes. Thailand’s personal income tax system is progressive, with rates ranging from 5% to 35%. The greater the net income, the higher the taxpayer’s tax bracket, and the higher percentage of their annual income they must pay.

However, the tax rate of a particular bracket applies only to the income in that bracket, not the total assessable income. The tax brackets are as follows:

• Between 150,001 and 300,000 baht: 5%
• Between 300,001 and 500,000 baht: 10%
• Between 500,001 and 750,000 baht: 15%
• Between 750,001 and 1,000,000 baht: 20%
• Between 1,000,001 and 2,000,000 baht: 25%
• Between 2,000,001 and 5,000,000 baht: 30%
• Greater than 5,000,000 baht: 35%

So, for example, if a tax resident earned a total of 500,000 baht (after deductions), they would be responsible for paying 5% of the 150,000 in the first bracket, and 10% of the 200,000 in the second bracket. This means they would be responsible for a total of: 7,500 + 20,000 = 37,500 baht.

No tax needs to be paid on the first 150,000 baht of a tax resident’s income. If their net assessable income is 150,000 baht or less, the taxpayer is completely exempt from having to pay personal income taxes, though they still must file a return.

Taxes on Foreign Income in 2025

Personal income taxes do not only apply to income derived in Thailand, but also to income earned from abroad. Currently, Thai tax residents are required to pay taxes on foreign-sourced income that has been remitted into the country, regardless of when it was earned. Exemptions are only granted to individuals who have met specific conditions, such as those who have obtained a Long-Term Resident Visa (LTR). 

However, a key change to the rules regarding taxing foreign income in Thailand has been proposed and is under discussion by the government. Should this new rule be confirmed, tax residents earning certain kinds of foreign income may benefit from a tax exemption. However, the new guidelines will only apply if the income is remitted to Thailand within 12 months of the calendar year they were generated.

Corporate Taxes in Thailand

Businesses in Thailand, regardless of whether they are owned or operated by Thai nationals or foreigners, must pay several kinds of corporate taxes. Several specific business taxes will apply only if the company in question engages in select activities, such as property rentals, but there are two kinds of corporate taxes that nearly all businesses must pay.

The first is the standard corporate tax, which typically applies to 20% of a company’s net profits, though the rate may be lower depending on the company’s business structure. For instance, Small and Medium Enterprises (SMEs) qualify for a lower progressive tax rate that ranges from 0% to 20%.

If a business makes more than 1.8 million baht in revenue per year, the other kind of tax that requires registration is the Value-Added Tax (VAT). This is a type of tax applied to goods and services during each stage of their production or distribution, and must be paid frequently during the tax year. However, VAT is collected by businesses on behalf of the government by taxing the consumer who is purchasing their product or service. Although VAT does not come out of the business’s profits, it is still responsible for collecting the tax and sending it to the Revenue Department.

Reducing Tax Burdens

Taxpayers may legally reduce their tax liabilities under certain circumstances. One way to achieve this is through deductions, which are available to both foreigners and locals. By claiming these deductions and allowances, taxpayers can lower their taxable income before the final calculation, which may place them in a lower tax bracket, resulting in a reduced marginal rate. Some of the applicable tax deductions include:

• Personal allowance of 60,000 baht
• Spousal allowance of up to 60,000 baht
• Child allowance of up to 30,000 baht per child (only applicable for up to 3 children)
• Life insurance premiums of up to 100,000 baht
• Social security contributions of up to 9,000 baht per year
• Provident fund contributions of up to 15% of current salary (this is capped at 500,000 baht)

Another legitimate method of tax reduction is to verify whether their home country has signed a Double Taxation Agreement (DTA) with Thailand. This stops them from being taxed twice on their foreign-earned income. For example, if a taxpayer receives a pension from their home country that is taxed by that country, a DTA may exempt that income from Thai taxation, even if it is brought into the country. Currently, more than 60 countries have signed a DTA with Thailand.

Due to the current lack of clarity in the framework, the government is also looking into revising the personal income tax deduction system. This is part of the government’s plan to broaden the tax base and modernize revenue collection in Thailand. The changes to personal income collection are planned to affect income earned in 2026, and thus will only be relevant during the 2027 filing season.

Professional Assistance from a Qualified Tax Lawyer

If you need professional assistance in filing your taxes on time or have questions about Thailand’s tax system, reach out to Siam Legal’s Thai tax consultants for guidance. With more than 20 years of experience assisting both individual and corporate clients, we understand the unique challenges foreign taxpayers face in Thailand and can help you navigate them with confidence. Our tax lawyers will provide practical, results-oriented advice designed to help you fulfill your tax responsibilities while minimizing liabilities in both Thailand and your home country.

We begin by evaluating your current financial situation to identify available deductions, Double Taxation Agreements (DTAs), and other lawful strategies for reducing your tax burden. We will also handle all the administrative components of the taxation process, including filing your return and assisting you in obtaining a Tax Identification Number (TIN). With guidance from our international tax specialists, you can minimize mistakes when fulfilling your tax obligations and avoid legal penalties.

Contact Siam Legal and schedule a consultation with our tax consultants today to put your tax worries to rest and keep more of what you earn.

Category: Thailand Tax