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Tax in Thailand

Income Tax in ThailandIf you have a work permit in Thailand then you will need to pay income taxes. The taxes for foreigners are the same as for Thai citizens. Note that you are not allowed to hold a profession in Thailand that a Thai citizen can do. There is a list of prohibited professions in Thailand which you can view and see what you are not allowed to do while in Thailand.

For tax purposes there are two types of taxpayers. There are Resident and Non-Resident taxpayers. The resident taxpayer is classified as someone who has resided in Thailand for a period that totals more than 180 days. The Non-Resident taxpayer, only incomes earned in Thailand are subject to taxation. Speak to a tax lawyer in Thailand for more advice if you earn income from abroad while living in Thailand.

Tax rates of the Personal Income Tax

Taxable Income
(baht)
Tax Rate
(%)
0-150,000 Exempt
more than 150,000 but less than 300,000 5
more than 300,000 but less than 500,000 10
more than 500,000 but less than 750,000 15
more than 750,000 but less than 1,000,000 20
more than 1,000,000 but less than 2,000,000 25
more than 2,000,000 but less than 4,000,000 30
Over 4,000,000 35

To be implemented for the 2013 and 2014 tax years.

Each year in February you will need to file a tax return. This is normally done by yourself as most companies in Thailand do not do tax rebates for you. If you are married to a Thai national or have children or hold an insurance policy then these can be deducted from your taxes as follows.

 

Deductions allowed for the calculation of PIT

Type of Income Deduction
a. Income from employment 40% but not exceeding 60,000 baht
b. Income received from copyright 40% but not exceeding 60,000 baht
c. Income from letting out of property on hire
            1) Building and wharves 30%
            2) Agricultural land 20%
            3) All other types of land 15%
            4) Vehicles 30
            5) Any other type of property 10%
d. Income from liberal professions 30% except for the medical profession where 60% is allowed
e. Income derived from contract of work whereby the contractor provides essential materials besides tools actual expense or 70%
f. Income derived from business, commerce, agriculture, industry, transport, or any other activities not specified in a. to e. actual expense or 65% – 85% depending on the types of income

Allowances (Exemptions) allowed for the calculation of PIT

Types of Allowances Amount
Personal allowance
            Single taxpayer 30,000 baht for the taxpayer
            Undivided estate 30,000 baht for the taxpayer’s spouse
            Non-juristic partnership or body of persons 30,000 baht for each partner but not exceeding 60,000 baht in total
Spouse allowance 30,000 baht
Child allowance (child under 25 years of age and studying at educational institution, or a minor, or an adjusted incompetent or quasi-incompetent person) 15,000 baht each
(limited to three children)
Education (additional allowance for child studying in educational institution in Thailand) 2,000 baht each child
Parents allowance 30,000 baht for each of taxpayer’s and spouse’s parents if such parent is above 60 years old and earns less than 30,000 baht
Life insurance premium paid by taxpayer or spouse Amount actually paid but not exceeding 100,000 baht each
Approved provident fund contributions paid by taxpayer or spouse Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht
Long term equity fund Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht
Home mortgage interest Amount actually paid but not exceeding 100,000 baht
Social insurance contributions paid by taxpayer or spouse Amount actually paid each
Charitable contributions Amount actually donated but not exceeding 10% of the income after standard deductions and the above allowances

If you are in need to tax advice then contact a tax attorney in Thailand or speak to an accountant in Thailand for more advice and assistance. With more than 250,000 foreigners in Thailand finding assistance should be very easy.

 

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