Personal income tax is a direct tax levied on the taxable income of both residents and non-residents earned in Thailand. Tax returns are filed annually, and the tax is paid based on the declared income.
For tax purposes, individuals are classified as either residents or non-residents. A resident is defined as any individual who stays in Thailand for at least 180 days within a calendar year.
A Thai resident is required to pay personal income tax on income earned in Thailand regardless of where it is paid, as well as on foreign income remitted into Thailand within the same tax year. A non-resident is taxed only on income earned within Thailand.
Tax Rates
Thailand applies a progressive tax rate system depending on the level of income. Tax rates were revised in 2013.
| Income (THB) | Rate before 2013 | Rate from 2013 |
|---|---|---|
| 0 – 150,000 | 0% | 0% |
| 150,001 – 300,000 | 10% | 5% |
| 300,001 – 500,000 | 10% | 10% |
| 500,001 – 750,000 | 20% | 15% |
| 750,001 – 1,000,000 | 20% | 20% |
| 1,000,001 – 2,000,000 | 30% | 25% |
| 2,000,001 – 4,000,000 | 30% | 30% |
| 4,000,001 and above | 37% | 35% |
Tax Base
The tax base includes both cash income and benefits in kind. This means that any benefits provided by an employer or other parties—such as housing allowances—are considered taxable income.
Depending on the category of income, taxpayers are entitled to deductions as prescribed by law:
| Type of Income | Deduction |
|---|---|
| Salary | 40% (max 60,000 THB) |
| Employment income | 40% (max 60,000 THB) |
| Copyright income | 40% (max 60,000 THB) |
| Interest, dividends, capital gains | No standard deduction |
| Rental income | Actual expenses or: 30% (buildings), 20% (agricultural land), 15% (other land), 30% (vehicles), 10% (other property) |
| Professional services | 30% (60% for medical services) |
| Contract services | Actual expenses or 70% |
| Business income | Actual expenses or 65–85% |
Withholding Tax
For certain types of income, the payer acts as a withholding agent. The withheld tax is credited against the taxpayer’s final liability and treated as a tax credit when filing the annual return.
| Type of Income | Withholding Tax Rate |
|---|---|
| Salary | 5–35% |
| Rent and prizes | 5% |
| Lease of vessels | 1% |
| Professional services | 3% |
| Entertainment industry | Residents: 5% / Non-residents: 5–37% |
| Advertising services | 2% |
Tax on Real Estate Transactions
When registering a property transaction with the Land Department, the following taxes and fees apply:
| Tax Type | Sale (<5 years) | Sale (>5 years) | Lease | Inheritance |
|---|---|---|---|---|
| Transfer fee | 2% | 2% | 1% | 0.5% (family) / 2.5% (others) |
| Specific business tax | 3.3% | — | — | — |
| Stamp duty | — | 0.5% | 0.1% | — |
| Withholding tax | 1% | 1% | — | — |
| Total | 6.3% | 3.5% | 1.1% | 0.5% / 2.5% |