Fiscal residency
An individual is considered a tax resident in Thailand if he/she spends ≥ 180 days / calendar year in Thailand. Both tax residents and non-residents must declare their income generated from Thailand (e.g: salary from employment in Thailand, rental income from property located in Thailand, etc.) regardless whether such income is paid in or outside Thailand. Tax residents must declare their income generated from foreign sources only if such income is remitted into Thailand in the year in which it is generated.
Example:
Let’s say you are a tax resident and receives dividends in 2019 from a company registered in France on your French bank account. Such income shall only be taxable in Thailand if you remit it to Thailand in 2019.
Assessable Income
There are 8 categories of assessable income as follows:
- Salary & other fringe benefits (housing allowance, transportation allowance, etc.)
- Hire of work & services rendered
- Goodwill, copyrights, franchise, patent & other Rights
- Dividends, interests, gain on merger/acquisition/dissolution of a company/partnership, gain on the sale of shares in a company
- Leasing of property (including income derived from breaches of Lease Agreements), installment sales contracts
- Income from liberal professions (e.g. legal services in court, medicine, etc.)
- Income from construction contracts and other related contracts of work
- Income from business, commerce, agriculture, industry, transport or from any other activity not mentioned in 1-7
Deductions
| Category of income | Rate (%) |
| Assessable income from category 1, 2 and 3 (goodwill, copyrights and other rights only) | 50% of assessable income but capped at THB 100,000 |
| Assessable income from category 3 (apart from goodwill, copyrights and other rights) and 4 | none |
| Assessable income from category 5 | 10-30% depending on the type of leased property |
| Assessable income from category 6, 7 and 8 |
30-60% depending on the type of income/business |
Allowances
| Type of allowances | Rate (THB or %) |
| Personal allowance | THB 60,000 |
| Spouse allowance | THB 60,000 only if the spouse has no income |
| Child allowance | THB 30,000 for the first child and THB 60,000 from the second child onwards if born in or after 2018 |
| Parental care | THB 30,000 / parent only if the parent has no income |
| Disabled person care | THB 60,000 / person |
| Health insurance premium | Actual amount but capped at THB 25,000 and paid to a Thai insurance company |
| Life insurance premium | Actual amount but capped at THB 100,000 (including Health insurance premium, if any), only if the insurance period is ≥ 10 years and paid to a Thai insurance company |
| Mortgage interests | Actual amount but capped at THB 100,000 and paid to a Thai bank |
| Retirement Mutual Fund (RMF)/Provident Fund [1] | Actual amount but not exceeding 30% of gross assessable income (or 15% of gross salary for a Provident Fund) and capped at THB 500,000 |
| Super Savings Fund (SSF) – from 2020 to 2024 [1] |
Actual amount but not exceeding 30% of gross assessable income and capped at THB 200,000 and if the invested amount is held for ≥ 10 years |
| Social Security Fund |
Actual amount |
[1] In total, the tax allowance may not exceed THB 500,000 when combining investments in Super Savings Funds (SSFs), Retirement Mutual Funds (RMFs), provident funds, government pension funds, private teacher aid fund contributions, national savings funds and annuity insurance premiums.
Calculation
The personal income tax is calculated on assessable income per calendar year after deductions and allowances and according to the following tax brackets:
| Net income after deductions & allowances | Tax rate (%) | Tax amount (THB) |
| ≤ THB 150,000 | 0% | 0 |
| THB 150,000 – THB 300,000 | 5% | THB 7,500 |
| THB 300,000 – THB 500,000 | 10% | THB 20,000 |
| THB 500,000 – THB 750,000 | 15% | THB 37,500 |
| THB 750,000 – THB 1,000,000 | 20% | THB 50,000 |
| THB 1,000,000 – THB 2,000,000 | 25% | THB 250,000 |
| THB 2,000,000 – THB 5,000,000 | 30% | THB 900,000 |
| ≥ THB 5,000,000 | 35% |
Example:
Let’s say your earn a monthly gross salary of THB 100,000 from your employment in Thailand, you are married and have 2 children (with the second child being born in 2018). You also subscribed to a health insurance (premium = THB 30,000) and also invested THB 200,000 in a SSF.
Gross assessable income: THB 1,200,000 (THB 100,000 * 12 months)
Deductions and allowances:
– Deductions: THB 100,000 (THB 1,200,000 * 50% but capped at THB 100,000)
– Personal allowance: THB 60,000
– Spouse allowance: THB 60,000
– Child allowance: THB 90,000
– Health insurance premium: THB 25,000
– SSF: THB 200,000
= Net assessable income: THB 665,000
Personal income tax: THB 52,250 (THB 7,500 + THB 20,000 + THB 165,000 * 15%)
Submission & Penalties
A tax payer must submit his/her personal income tax return within 31st of March (or last working day) of the following year. The fine for late filing is THB 200 and there is also a surcharge of 1.5% of the amount of tax payable per month.