Both residents and non-residents of Thailand are subject to personal income tax in Thailand. However, the sources of income that are taxable vary between the two.
A resident of Thailand will be subject to tax on income from all sources in Thailand on a cash basis. This applies regardless of where the money is paid (whether the income stays in Thailand or is sent abroad), and on the portion of income that is brought into Thailand in the same year that it is earned. However, the latter point offers a unique opportunity to avoid paying this part of the tax by simply waiting for the new tax year (after Dec 31st) before transferring the money to Thailand.
A non-resident is only subject to tax on income derived within Thailand.
Taxable income covers both cash and benefits in kind. Taxable earnings include income from employment i.e. your salary, receipts from copyright, interest earned, dividends earned/dividend payments received*, capital gains and income from the letting of property i.e. rent.
*With regards to personal income tax for the dividends earned, if the 10% Withholding Tax has already been deducted, you have the right to treat that 10% as the final taxable amount on this income.
What is the Personal Income Tax Rate in Thailand?
Personal Income Tax rates for 2021
|Taxable Income (Thai Baht)||Tax Rate (%)|
|1 – 150,000||Exempt|
|150,001 – 300,000||5%|
|300,001 – 500,000||10%|
|500,001 – 750,000||15%|
|750,001 – 1,000,000||20%|
|1,000,001 – 2,000,000||25%|
|2,000,001 – 5,000,000||30%|
There are a number of deductions and allowances available to both residents and non-residents to take advantage of. These deductions depend upon the type of income earned and the family status of the concerned individual. Please see the table below for available allowances and deductions.
|Type of allowances||Rate (THB or %)|
|Spouse allowance||60,000 (spouse must have no income)|
|Child allowance||30,000 for the first child and 60,000 from the second child onwards (born in or after 2018)|
|Parental care||30,000 / parent (parent must have no income)|
|Disabled person care||60,000 / person|
|Health insurance premium||Actual policy amount (capped at 25,000 and must paid to a Thai insurance company)|
|Life insurance premium||Actual policy amount (including Health insurance premium, if any). Insurance period must be greater than 10 years and paid to a Thai insurance company (capped at THB 100,000).|
|Mortgage interests||Actual amount paid and must be paid into a Thai bank (capped at THB 100,000)|
|Retirement Mutual Fund (RMF)/Provident Fund ||Actual amount paid but not exceeding 30% of gross assessable income or 15% of gross salary for a Provident Fund (capped at THB 500,000)|
|Super Savings Fund (SSF)||Actual amount but not exceeding 30% of gross assessable income. Invested amount must have been held for 10 years or more (capped at THB 200,000).|
|Social Security Fund||Actual amount|
Please note that the table above is not definitive and allowances on specific income may differ.
*A non-resident is eligible for deductions for their spouse, children, and parents only if they are resident (for tax purposes) in Thailand.
When are tax returns due for personal income tax in Thailand?
Individual tax returns are due by the 31st of March (form PND 90 or 91). if you wish to submit your returns electronically, you have until the 8th of April.
When does the tax year-end in Thailand?
31st of December.
What are the compliance requirements for tax returns in Thailand?
For employment income, your employer will deduct income tax from your salary before paying it to you. This is known as the withholding system. Employers must submit a monthly withholding tax return to the Revenue Department each month. This payment must be made within the first 7 days following the month in which the payment was made. Any further tax due must be paid at the time of filing the return i.e. by the 31st of March (8th of April for electronic submissions).
The same process for residents applies to non-residents as well.