Personal Income Tax (PIT)
Note. Tax laws are subject to constant change. For the newest rules refer to the Revenue Department (http://www.rd.go.th).
Individual expats working in Thailand are subject to a Personal Income Tax (PIT). If you reside in Thailand longer than 180 days, you will be liable to pay income tax on all earnings; both what has been earned in and out of Thailand. The tax amount is worked out per individual, and you will pay more tax on your earnings within Thailand. Corporate Income Tax (CIT) is a direct tax levied on a company carrying out business in Thailand.
Assessable income which is subject to tax includes both cash and kind (such as a rent-free house) and is divided into eight categories:
- Income from personal services provided to employers
- Income from jobs, positions or services rendered
- Income from royalties such as copyright, franchises, or income received from a will
- Income from interest on deposits with banks in Thailand and shares of profits
- Income from letting property
- Income from liberal professions
- Income from construction and other contracts of work
- Income from business, commerce, agriculture, industry, transport or any other activity not specified previously.
Assessable income can have deductions and allowances. These should be made before calculating taxable income.
The types of deductions for personal income are as follows:
- Income from employment: 40%, not exceeding 60,000 THB
- Income from royalties: 40%, not exceeding 60,000 THB
- Income from rental property:
– Buildings: 30%
– Agricultural land: 20%
– Other types of land: 15%
– Vehicles: 30%
– Other property: 10%
- Income from liberal professions: 30%; medical profession – 60%
- Income from contract work: 70% or actual expenses
- Income from businesses: 40% to 85% depending on actual expenses)
The allowances for individual taxpayers include:
- Individual taxpayer: 30,000 THB
- Married taxpayer: 30,000 THB
- Non-juristic partnership: 30,000 THB per person
- Spouse allowance: 30,000 THB
- Child allowance (for children under 25 and studying): 15,000 THB each or 17,000 THB studying in Thailand (maximum of three children)
- Old age allowance (over 65): 190,000 THB
Tax rates for Personal Income:
|Taxable income (per year)||Tax Rate||Tax Amount||Accumulated Tax Amount|
|Less than 150,000 THB||Exempt||Exempt||Exempt|
|150,000 – 500,000 THB||10%||35,000||35,000|
|500,001 – 1,000,000 THB||20%||100,000||135,000|
|1,000,001 – 4,000,000 THB||30%||900,000||1,035,000|
|4,000,001 THB and over||37%||variable||variable|
An individual can file their own tax return, but they must be in Thai, therefore many people use their company’s accountant. The tax calendar for Thailand begins on 1st January and ends on 31st December. All individual taxpayers must file their returns (for the previous year) by 31st March at the latest. If your employer pays your tax, it will be deducted every month whereas if you have to arrange it yourself, it is advisable to save a little bit every month to prevent having to pay the lump sum at once. There are tax agreements with a number of countries throughout the world which ensures that expats do not run the risk of being double-taxed.