Tax Liability for Foreign Nationals Working in Thailand

Both residents and non-residents of Thailand who earn have to pay the Income Tax. A person is considered to be a Thai resident if he/she resides in the country for 6 months or more. Taxes must be paid by the filing date declared by The Revenue Department.

Different categories of personal income:

1. Rental Services- Accommodation, Car
2. Employment
3. Position Held
4. Royalties or Dividends
5. Rental Agreements
6. Any business

Any income that is assessable is also taxable. Every taxpayer has certain allowances in Thailand.

1. Personal allowance – 30,000 THB
2. Allowance for child under the age of 25 (maximum of 3 children) – 15,000 THB
3. Allowance for parents over the age of 60 and their income is less than 30,000 THB – 30,000 THB each.
4. Personal allowance if age is over 65 – 190,000 THB

Taxes that foreigners need to pay:

1. Personal Income Tax (PIT)
2. Corporate Income Tax (CIT)
3. Value Added Tax (VAT)
4. Stamp Duty (ST)
5. Specific Business Tax (SBT)

People who earn less than 150,000 THB are exempted from income tax. If an individual earns more than 150, 000 THB but less than 500,000 THB is taxed at 10%. Anything between 500,000 THB and 1 million THB is taxed at the rate of 20%. In the earning is between 1 million and 4 million THB, it is taxed at 30%. Any income above 4 million is taxed at 37%.

Special rates are applicable to companies that are listed on Securities Exchange and Thailand or the Market for Alternative Investment. Tax deductions for personal income enjoyed by foreigners are:

• Income from employment: 40% (not more than 60,000 THB)
• Income from royalties: 40% (not more than 60,000 THB)
• Income from liberal professions: 30%
• Income from medical profession: 60%
• Income from contract work: 70% or actual expense
• Income from business: 40% to 85% depending on the source of income and actual expenses
• Income from property on rent:
• Buildings: 30%
• Agricultural land: 20%
• Other types of land: 15%
• Vehicles: 30%
• Other property: 10%

All taxes need to be paid by 31^st March of every year, like most other countries.