Understanding Personal Income Tax in Thailand: A Comprehensive Guide
- Leo Watanabe
- Mar 18
- 4 min read
Thailand uses a progressive tax system, with rates ranging from 0% to 35%, depending on taxable income. Both residents and expatriates who earn income in the country are required to pay taxes. For non-Thai nationals, Thailand has tax treaties with over 60 countries to prevent double taxation and support international business.
Following tax regulations is necessary to meet legal requirements and avoid penalties. This includes understanding residency rules, deductible expenses, allowances, and filing requirements. Proper tax planning can help reduce tax liabilities and maximize savings. This guide provides an overview of Thailand’s tax system, including obligations, exemptions, deductions, and penalties for non-compliance.
1. Understanding Tax Residency in Thailand
The Thai Revenue Code defines tax residency based on the number of days an individual stays in Thailand within a calendar year. Individuals who reside in Thailand for 180 days or more in a fiscal year are considered tax residents. Tax residents are liable for personal income tax on income earned within Thailand and on foreign-sourced income remitted to Thailand if such income is earned on or after January 1, 2024 for the 2024 fiscal year.
On the other hand, those individuals who stay in Thailand for less than 180 days are considered non-tax residents and are only taxed on income earned within Thailand. This includes income from employment, business, or property located in Thailand. Foreign-sourced income (earned outside Thailand) is not taxable for non-residents even if is remitted to Thailand.
Expatriates in Thailand are governed by the same tax regulations as Thai citizens, with their tax obligations based on their residency status and sources of income. However, expatriates may qualify for exemptions or reductions if a Double Taxation Agreement (DTA) exists between Thailand and their home country. As of 2025, Thailand has a DTA with over 60 nations that offer benefits such as tax credits or exemptions to mitigate dual taxation.
2. Who Needs to File a Personal Income Tax Return in Thailand?
People earning taxable income in Thailand must follow the Personal Income Tax (PIT) rules. These groups typically need to file a PIT return if their income is above the minimum threshold — 120,000 THB annually for employment income or 60,000 THB annually for other income sources.
Foreign Employees: Foreign workers in Thailand, whether employed under work permits or BOI-sponsored visas, must file a PIT return as they are subject to Thai tax laws on their earnings in the country.
Foreign Business Owners: People who own businesses in Thailand and earn profits, dividends, or rent must file a return.
Freelancers, Digital Nomads, and Self-Employed Individuals: Those earning income from freelance work, online businesses, or self-employment within Thailand must file a PIT return, even if they don't receive a salary from a traditional employer.
Individuals with Multiple Income Streams: Taxpayers who earn income from various sources such as salary, rental income, dividends, and capital gains must file a PIT return to ensure all income is appropriately reported and taxed.
3. Tax Filing Deadlines and Compliance
The tax filing deadlines depend on the submission method. For paper filings, taxpayers must submit their return by March 31st, while online filings have an extended deadline until April 8. Missing these deadlines can lead to penalties, including a fine of up to 2,000 THB and interest charges of 1.5% per month on any outstanding tax balance. In more severe cases, failure to file altogether may lead to legal consequences such as additional fines or audits by the Revenue Department.
4. Personal Income Tax Rates in Thailand (2024 Update)
Under Thailand’s PIT system, individuals are taxed based on their annual taxable income after deductions and allowances with rates ranging from 0% to 35%. The tax brackets for 2024 remain unchanged from previous years and are as follows:
Annual Taxable Income (THB) | Tax Rate |
0 – 150,000 | 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% |
Assessable income includes cash and non-cash benefits (e.g., housing or employer-paid taxes) across eight categories such as salaries, investments, and rent. Taxable income covers salaries, freelance and business earnings, rental income, certain capital gains, dividends, and interest (with exemptions).
Certain types of income are exempt from taxation such as government pensions, work-injury compensation, and foreign income not remitted to Thailand for non-residents. Some capital gains, such as profits from stock sales on the Stock Exchange of Thailand, are also exempt unless they are part of a trade.
5. Taxable Income
Taxable income includes:
Salary, bonuses, commissions, and other employment income
Benefits-in-kind provided by employers, such as housing, travel allowances, and stock options
Business profits and professional fees for self-employed individuals
Investment income such as dividends, capital gains, and rental earnings
For employees, taxes are usually withheld at source by employers. However, self-employed individuals and business owners must declare and pay their taxes independently.
6. Key Deductions and Allowances
To reduce taxable income, individuals can claim various deductions and allowances, including:
Personal allowance: THB 60,000 per taxpayer
Spouse Allowance: THB 60,000 (if applicable)
Child allowance: THB 30,000 per child (up to three children)
Parental support allowance: THB 30,000 per parent (conditions apply)
Social security contributions: Deductible up to THB 9,000 per year
Provident fund & retirement savings: Contributions to approved funds are deductible within prescribed limits
Accurate and timely PIT filing is vital for compliance and financial management. Understanding obligations, claiming deductions, and following proper procedures can reduce tax burdens and prevent penalties. For professional assistance with tax filing, advisory, and compliance, contact BizWings at bizwings@contact.co. Our team of professionals is ready to assist you with accurate tax filing, ensuring compliance, and maximizing your tax efficiency.
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