If you are living and earning income in Thailand you must have your own tax ID number. You can get it from the tax office by showing your passport or ID card. Also, you need to prove the reason behind the need for the number. There are English staff for ex-pats who will assist you with any sort of queries.
Residents in Thailand for tax purposes are people living in the country for more than half a year. And if that’s the case, then you have to pay the taxes on the income that you are able to earn worldwide. However, if you are in the country for lesser than 180 days then you are expected to pay tax on the income that you would receive from within Thailand.
Incomes that are considered to be assessable usually fall under Personal Income Tax in Thailand. Additionally, this includes non-cash payments like accommodation or the use of a car. In fact, there are different categories of personal income such as income from employment, a position held, royalties or dividends, rental agreements, construction and any business.
However, there are a series of deductions that can be subtracted from assessable income. Firstly, an individual completing a tax return will begin with the assessable income amount. Secondly, he or she has to deduct the expenses and any personal allowances. Further, the remaining amount is taxed. However, there are different percentages of deductions based on the types.
Income Tax on Earnings
As mentioned earlier, income tax in Thailand is based on assessable income. The definition covers the below mentioned;
Thai Income Tax Bands – 2017/18
|
Income Band |
Rate |
Notes |
|
0 – 150,000 |
Exempt |
|
|
150,000 – 300,000 |
5% |
New Tax Rate |
|
300,000 – 500,000 |
10% |
|
|
500,000 – 750,000 |
15% |
New Tax Rate |
|
750,000 – 1,000,000 |
20% |
|
|
1,000,000 – 2,000,000 |
25% |
New Tax Rate |
|
2,000,000 – 4,000,000 |
30% |
|
|
4,000,001 and Up |
35% |
New Tax Rate (Reduced from 37%) |
As far as filing tax is concerned, you can file of course file your own tax return, just that the returns should be in Thai. So, if you do not have the knowledge of the Thai language you should seek help of an accountant. The tax year in Thailand runs from 1st January to 31st December thus the tax return should be with the tax office by 31st March. Also, payments must be made promptly as there could be penalties for late filing and payment. And if the income is from your business, then you may even need to submit a return in every six month.
