Personal Income Tax Thailand: A Professional Guide

Personal income tax in Thailand is a tax levied on the income of individuals, including both residents and non-residents. Residents are taxed on their income from all sources, regardless of where it is earned, while non-residents are only taxed on their income from sources in Thailand.

Tax Rates

The Thai Personal Income Tax PIT system is progressive. It means that the higher your income, the higher the tax rate you will pay. The following table shows the PIT rates for the 2023 tax year:

Taxable income (baht)Tax rate (%)
0 – 150,000Exempt
150,001 – 300,0005
300,001 – 500,00010
500,001 – 750,00015
750,001 – 1,000,00020
1,000,001 – 2,000,00025
2,000,001 – 4,000,00030
4,000,001 and over35

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Tax Exemptions

There are a number of personal income tax exemptions available in Thailand. Some of the most common exemptions include:

  • Personal allowance: Each taxpayer is entitled to a personal allowance of 60,000 baht per year.
  • Spouse allowance: Married taxpayers are each entitled to a spouse allowance of 60,000 baht per year.
  • Child allowance: Each taxpayer is entitled to a child allowance. It is of 30,000 baht per year for each child.
  • Social Security Fund (SSF) contributions: Contributions to the SSF are deductible from taxable income.
  • Provident Fund contributions: Contributions to a Provident Fund are deductible from taxable income.
  • And many others

Tax Filing and Payment

The Thai tax year runs from January 1 to December 31. Taxpayers are required to file a tax return. They should pay any outstanding tax due by March 31 of the following year. Tax returns can be filed electronically or by paper.

Tax Withholding

Employers are required to withhold PIT from their employees’ salaries and pay it to the Revenue Department on a monthly basis. Employees can claim a tax refund if they have overpaid their taxes.

Modifications of 2024

Foreigners are worried about the modifications to the revenue code in late September 2023. We are not sure how it will be handle. We know that all tax residents of Thailand, foreigners or Thais, must declare incomes earned abroad starting on January 2024.

Conclusion

The Thai PIT system is complex and there are a number of factors that can affect your tax liability. It is important to consult with a tax advisor. Taxes are complex and you want to ensure that you are complying with the Thai tax laws. Also that you are claiming all of the available exemptions and deductions.

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