Taxation: Individuals


Personal Income Tax

Taxpayers are classified into “resident” and “non-resident”. “Resident” means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand as well as on the portion of income from foreign sources that is brought into Thailand. A non-resident is, however, subject to tax only on income from sources in Thailand.

Tax rates of the Personal Income Tax

Personal income tax rates applicable to taxable income are as follows

There is an increasing tax rate In Thailand, which depends on the amount of income. Since 2013, the rates have been changed. In the table below shows the amount of rates indicated before and after the changes.

Taxable income (baht)

The tax rate before 2013

The tax rate from 2013

0 – 150,000

0%

0%

150,001 – 300,000

10%

10%

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%

Over 4,000,000

37%

35%

The tax base

The tax base includes the income in cash as well as the income in other forms. It means that any benefits provided by the employer or any other person, for example, the reimbursement of the rent payment for the accommodation of employee by the company, will be treated as a taxable income.

Certain deductions and allowances are allowed in the calculation of the taxable income. Taxpayer shall make deductions from assessable income before the allowances are granted. Therefore, taxable income is calculated by:

TAXABLE INCOME = Assessable Income - deductions - allowances

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

Withholding tax

Types of income

Withholding tax rate

Employment income

5-35%

Rents and prizes

5%

Ship rental charges

1%

Service and professional fees

3%

Public entertainer remuneration

- Thai resident

- Non resident

5%

5-37%

Advertising fees

2%

Income tax on real estate transactions

In order to register a real estate transaction in the Land Office the following taxes and fees should be paid

Type of tax

Selling (the property ownership is less than 5 years)

Selling (the property ownership is more than 5 years)

Rent

Entry into the inheritance

Duty

2%

2%

1%

0,5% (for the members of family) 2,5% (for others)

Business tax

3,3%

Postal fee

0,5%

0,1%

Withholding tax

1%

1%

Total

6,3%

3,5%

1,1%

0,5% or 2,5%

Investment