Understanding about Personal Income Tax in Thailand
Do I Have to Pay Personal Income Tax if I Work in Thailand?
If you are a foreigner planning to work or run a business in Thailand, understanding personal income tax (PIT) obligations is crucial for both legal compliance and financial planning.
Here’s what you need to know about paying personal income tax when working in Thailand:
✅ 1. Who Needs to Pay Personal Income Tax in Thailand?
You are required to pay personal income tax in Thailand if you:
- Live and work in Thailand for 180 days or more in a calendar year (becoming a tax resident).
- Earn income from employment, business, or other sources in Thailand, regardless of the number of days stayed.
- Receive income transferred into Thailand (even if earned overseas, in some cases).
💡 Note: Both Thai residents and foreigners who meet these criteria must file personal income tax.
✅ 2. What Types of Income Are Subject to Personal Income Tax?
- Salary and wages.
- Bonuses, commissions, and allowances.
- Director fees or consulting fees.
- Rental income, dividends, interest, royalties.
- Income from business or professional services in Thailand.
✅ 3. What Are the Personal Income Tax Rates in Thailand?
Thailand uses a progressive tax rate system, meaning the more you earn, the higher percentage of tax you pay.
Personal Income Tax Rates (as of 2024):
| Annual Income (THB) | Tax Rate |
|---|---|
| 0 – 150,000 | Exempt (0%) |
| 150,001 – 300,000 | 5% |
| 300,001 – 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,001 – 1,000,000 | 20% |
| 1,000,001 – 2,000,000 | 25% |
| 2,000,001 – 5,000,000 | 30% |
| Over 5,000,000 | 35% |
✅ 4. Tax Filing and Payment Requirements
- Annual personal income tax return (Form PND 90/91) must be filed by March 31 of the following year.
- Tax payments are made along with the tax return or via withholding tax deducted monthly by your employer.
- Foreigners with work permits and salaries are usually subject to monthly withholding tax by employers, which counts toward annual tax obligations.
✅ 5. Are There Any Tax Treaties to Avoid Double Taxation?
Thailand has Double Tax Agreements (DTA) with many countries (e.g., USA, UK, Australia, Japan, China) to avoid double taxation on the same income.
💡 Note: You may be eligible for tax credits or exemptions under a DTA.
🎯 Key Takeaways:
| Topic | Details |
|---|---|
| Who must pay tax? | Foreigners working or earning income in Thailand. |
| When are you a tax resident? | Stay 180 days or more in a calendar year. |
| Tax rates? | Progressive: 0% to 35%. |
| Types of taxable income? | Salary, bonuses, dividends, rent, etc. |
| Filing deadline? | March 31 of the following year. |
| Double Tax Agreement (DTA)? | Yes, with many countries to prevent double taxation. |
💼 How BRW Can Help You Stay Tax Compliant in Thailand
At BRW – Boonrawee Co., Ltd., we offer personalized tax advisory services for foreigners, including:
- Tax planning and optimization for foreign workers and business owners.
- Filing personal income tax returns (PND 90/91).
- Withholding tax management for companies hiring foreign employees.
- Advice on double tax treaties (DTA) to avoid double taxation.
📞 Contact BRW today for a free consultation on your personal income tax obligations in Thailand!
