Thailand Income Tax for Foreigners: Do You Need to Pay? (Updated 2024)

When it comes to Thailand income tax for foreigners, there’s a lot of misinformation floating around on the internet.

Some expats will tell you that they never pay income tax. Others, however, will tell you that they file every year. Who should you listen to? Then there are the tax rates. If you do have to file personal income taxes in Thailand, what percentage will you be taxed?

In addition, Thailand introduced a new tax regulation in 2024 requiring you to pay taxes on your global income if you bring it into the country. To make sure this is enforced, Thailand has begun asking all banks to comply with the Common Reporting Standard for tax purposes.

So many questions that need reliable answers.

With that in mind, this guide will help you determine if you’re a tax or non-tax resident in Thailand, what your tax rates in the country are, and how to file your personal income taxes.

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Do Expats Pay Income Tax in Thailand?

Thailand is not a tax haven. So if you plan on living here without encountering any legal issues, you have to make sure you file taxes on any liable earnings.

Everyone living in Thailand pays taxes. It comes in many forms. The most outstanding tax is VAT (value-added tax), which is charged at 7 percent on most products and services in Thailand. 

Tax are also hidden in every service and product you get in Thailand. If you buy a condo, you have to pay condo tax. If you own a car, you have to pay car tax every year. 

If you are working in Thailand, another common type of tax you’ll have to pay is personal income tax. 

Even digital nomads who work remotely in Thailand might have to pay income taxes. 

To determine if you have to pay an income taxe in Thailand, you first need to find out if you’re a tax resident in Thailand.

Tax Residents Vs. Non-Tax Residents

Expats in Thailand fall into two categories:

• Tax residents
• Non-tax residents

Thailand Tax Residents

A tax resident is anyone who lives in Thailand for 180 days of a calendar year. Anyone shy of that number is considered a non-tax resident. 

This important difference in residency classification means there is also a difference in what income is taxable.

Tax residents must pay taxes on any income they earn in Thailand as well as a portion of any income brought in from overseas as noted in Section 1 of the Revenue Department’s website. 

However, any income you earn during the year but leave in a bank account outside of Thailand is not subject to taxes.

This means, if you make money abroad and don’t want to pay income taxes on it in Thailand, you must leave the money in a foreign bank account without sending it to Thailand.

This also applies to pensions, but we’ll talk about that in greater detail in a section below.

Thailand Non-Tax Residents

In comparison to tax residents, non-tax residents are only liable for income that is earned in Thailand. This means your income from foreign sources aren’t taxed.

Please do note that to legally be a tax resident in Thailand and pay Thailand income tax, you need to get a Thailand tax ID from your local Revenue Department. If you are working in Thailand, you employer will do it for you.

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Personal Income Tax Rates 

Thailand has a progressive tax system, which means your tax rate increases as your income increases. 

You must pay taxes once you earn more than 150,000 baht a year after tax deductions. Then, the more you make, the higher tax rates you have to pay. 

At present, the maximum tax rate is 35 percent for those who make over 4,000,000 baht a year. 

The table below shows what your tax rates will be at different incomes.

Taxable Income (THB)	Rate	Taxable amount (THB)
Less than 150,000	0	0
150,000-300,000	5%	7,500
300,000-500,000	10%	20,000
500,000-750,000	15%	37,500
750,000-1,000,000	20%	50,000
1,000,000-2,000,000	25%	250,000
2,000,000-4,000,000	30%	600,000
More than 4,000,000	35%	–

As you might’ve noticed, tax rates are comparable to most other countries, so the assumption that Thailand is a tax haven is untrue.

The main source of personal income tax for expats in Thailand is through employment. 

Note that if you work for a Thai company with an International Business Center (IBC) status, have a tax-residency status in Thailand, make a minimum annual income of 2,400,000 baht, your personal income tax rate is going to be a flat 15 percent.

Special Personal Income Tax Rate

Thailand offers a special visa known as the Long-Term Resident (LTR) visa. This visa provides eligible holders with a unique income tax benefit: a flat personal income tax rate of 17%. It’s important to note that this preferential rate primarily applies to individuals in the highly-skilled professional category.

For more information, check out our guide to the LTR visa.

Dividends and Bond Tax Rates 

Besides any income you earn from your employment in Thailand, you will also be expected to pay tax on other earnings. 

This includes but isn’t limited to capital gains, investment income, dividends, interest, and rental income. 

The table below shows you the different tax rates for these situations.

Type	Rate
Dividends	10%
Bond	15%

When you receive income from dividends or bonds in Thailand, there is a withholding tax at the rate of either 10% or 15%, respectively. You may not need to report it when filing your tax return unless you want to claim tax credits and request a tax refund.

However, before doing so, it’s recommended to talk to a tax advisor to ensure you calculate everything correctly.

Rental Income Tax

If you have rental income, it is subject to personal income tax at the rate of 0%-35%, as mentioned earlier in the previous section. But you can also claim a 30% tax deduction on your rental income.

In addition to that, your property is also subject to property tax at the rate of 0.02% to 0.1%, based on the type of your property.

Withholding Taxes

Thailand has a tax withholding system where your employer, payer, or financial institute withholds a percentage of your income from each paycheck and submits it to the Revenue Department. 

If it’s an income from employment, the withholding tax rate will be calculated based on your annual income from the progressive tax rate chart mentioned earlier. 

Your total annual tax due at the end of the year will then be divided by the number of payments – for example 12 if you get paid once a month – and this is how much taxes will be deducted from each of your paychecks. 

Type	Rate
Employment	0-35%
Rents and prizes	5%
Service fee	3%
Advertising fee	2%
Dividends	10%
Interest	1%
Royalties	3%

Although your payer withholds your taxes and pays them on your behalf, you should always ask for withholding tax certificate, which is necessary for filling your personal income taxes. 

Tax Deductions and Allowances

To decrease taxpayers’ burdens, Thailand has a number of deductibles and allowances available to both Thais and expats. 

Major deductions include:

• Employment income
• Copyright income
• Income from renting out buildings, agricultural land, vehicles
• Liberal professions income 

On top of that, the Thai government also allows a number of allowances when calculating total taxes such as but not limited to:

• Personal allowance
• Spousal allowance
• Child allowance
• Education
• Parents allowance
• Health insurance premiums
• Life insurance premiums
• Home mortgage interest
• Charitable contributions

The deduction and allowance rates amount for different income sources vary. 

This table shows popular deductions for expats:

Type	Amount (THB)
Personal allowance (available to everyone)	60,000
Employment	100,000
Spouse allowance (if your spouse doesn’t have an income)	60,000
Child allowance per person	30,000
Parent allowance per person (both you and your spouse)	30,000
Health Insurance	25,000
Super Savings Fund	30% of your income but not exceeding 200,000 baht
Social Security	Same amount you contribute
Donation	Same amount you donate but shouldn’t exceed 10% of your income
Rental Income	30% of your annual rental income

Note that deductions are subject to change every now and then. You can check the Revenue Department website for the most up-to-date rates.

Taking advantage of the allowances and deductions the Thai government provides can save you money on taxes, so it’s definitely in your best interest to make the most of them.

Non-tax residents are also eligible for some personal and specific allowances.

Filing Taxes

For most people, personal income tax filing starts on 1 January and is due by 31 March of every year for any income earned in the previous year.

The tax year ends on 31 December and starts on 1 January of every year.

You can file your taxes online through the Revenue Department E-Filing system.

Here’s a list of what you need to file taxes in Thailand:

• Tax ID (see next section on how to get your tax ID)
• E-filing account (you can register once you have a Thai tax ID)
• 50 tawi (for those who are employed in Thailand – your employer will give you this)
• Withholding tax certificate
• Deduction evidence such as receipts, SSF certificates, and so on.

If you work in Thailand, your employer may help you file your taxes.

If you file your own taxes, ask your Thai colleagues or an accountant for help since the tax filing form is only available in Thai. 

Otherwise, once you log in to the E-filing system, you have to take the following steps:

1. Add your personal address in Thailand
2. Choose your source of income 
3. Specify how much you make for each income type, including how much tax is already being withheld
4. Choose deductibles and specify amount

Please note that you need to choose the source of income correctly through the official code. 

For example, if it’s income from employment, it’s Section 40(1). If it’s income from subletting your condo, it’s Section 40(5).

Then, the system will show you how much tax you have to pay or how much of a tax return you’re going to get. 

You can pay your taxes by credit card or through a local wire transfer. 

You can track your tax filing status on the E-filing website. 

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Also, keep a copy of your tax filing because you’ll need it when renewing your work permit.

Getting a Tax Return

You can ask to get a tax return at the end of the e-filing system.

If you get a tax return, you can ask the Revenue Department to send a check to your address or you can donate it to a political party. 

Please note that when you request a tax refund, it’s likely that the Revenue Department will ask for more documents, including evidence of income, tax allowances, and tax deductions. If they do, you can upload requested documents through the system – and you should be good to go. 

It can take anywhere from under a week to a few months to get your tax return depending on when you file.

If you file early, there’s a chance that you’ll get your tax return within a week or two. 

If you file late in March, then it could take more than two months to get your tax return. 

Mid-Year Tax Return

If you earn advertising fees, are employed in public entertainment, or have rental income, you’re also required to file a mid-year tax return by September 30th. 

With all that said, when filing personal income taxes, consult with an accountant to make sure that you can plan your taxes in advance and file them correctly to prevent any fines and/or penalties. 

Tax IDs

To file your tax returns, you’ll need to register for a tax identification number. 

You can apply for a tax ID at your nearest revenue office with the following documents:

• your passport or identity card
• proof of address such as a rental contract
• an application form, which can be picked up at the Revenue Department.

If you work in Thailand, your employer will register for a tax ID on your behalf, but either way it must be done within 60 days of receiving your first paycheck.

Double Taxation Agreement

Over 50 countries have double taxation agreements with Thailand to ensure you won’t be taxed twice – once by Thailand and again by your country of origin. 

The United States, Canada, the United Kingdom, Australia, New Zealand, Germany, Norway, Russia, are a few of the countries that have such treaties in place. 

You can see a full list here. 

However, even if Thailand has a double taxation agreement with your country, you might still have to file personal income taxes in your home country. 

For instance, U.S. Citizens have to file in both countries in which they can do it using a tax filing software such as TurboTax.

To do this, you must get an English tax certificate from your local Revenue Department. 

Are Pensions Subject to Tax?

Pension and taxes in Thailand are tricky, and it’s a hot topic for those who retire in Thailand. 

Before 2024, while certain pensions were subject to tax, you were unlikely to pay pension tax in Thailand.

However, the situation completely changed in 2024 due to the new foreign-earned income tax regulations.

It’s likely that when you send your pension to Thailand, you are subject to personal income tax, with two main exceptions:

1. It’s a pension you earned before 2024. However, it is still unknown how to prove this to the Revenue Department.
2. There’s a double taxation agreement between Thailand and your country stating that the pension, mainly from the government, is subject to tax exclusion.

On the other hand, if it’s a pension from a private company, such as through an investment, it’s likely that you need to pay tax on that.

It’s best to read the double taxation agreement between Thailand and your home country. You can find it from this link on the Revenue Department website.

Digital Nomad Tax Liabilities

Digital nomads are in a bit of a gray zone when it comes to tax liabilities in Thailand.  

If you’re a tax resident, you have to pay taxes for all income made in Thailand and any foreign income you brought into Thailand. 

However, you can’t make income in Thailand without having the right visa and work permit. To avoid this issue, most digital nomads in Thailand who stay in Thailand for more than 180 days a year work for companies that are outside of Thailand and get paid abroad.

It’s not entirely legal. But there is nothing much they can do at the moment.

Although you may not need to pay Thailand income tax, you still have a tax liability and need to pay your taxes somewhere.

Do I Need to File Thailand Tax?

If you are subject to personal income tax, including but not limited to sending foreign income earned before 2024 to Thailand, working in Thailand, and more, you need to file a Thailand income tax return.

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However, please note that tax is a sensitive issue, and each personal situation is different. If you are curious about your situation, we recommend getting a free 15-minute consultation with Expat Tax Thailand. They are a tax consultant in Thailand.

Does Thailand Tax Foreign-Earned Income?

In September 2023, Thailand implemented a significant change in its tax policy regarding foreign-earned income.

Previously, foreign-earned income was not subject to Thai tax as long as it was not brought into Thailand within the same calendar year.

However, following the recent announcement, all foreign-earned income is now subject to Thai tax. If you have already paid taxes on that income in your home country, there is a chance that you may not need to pay it in Thailand due to the double taxation agreement.

Currently, we are in a transition period. Everyone is awaiting detailed guidelines from the Thailand Revenue Department.

On November 20, 2023, they released a new announcement stating that foreign-earned income earned before January 1, 2024, will not be subject to Thai tax if brought into Thailand. However, you need to provide evidence of when the income was earned.

If you are considering transferring money to Thailand now, it is advisable to consult with a tax advisor to determine whether your income will be subject to Thai tax.

Thailand Income Tax Calculator

If you’re working in Thailand, the best way to figure out your taxes is to talk to your accountant and ask them to help you calculate your personal income taxes. 

You can also find out how much taxes you have to pay each year by looking at your total salary. Usually, your taxes will be automatically withdrawn from your weekly or monthly salary.

For example, if your salary is THB50,000 but the actual salary you receive is THB47,458, the THB2,542 will go toward social security and personal income taxes. 

Since social security in Thailand is THB750 per month, it means you’ll be taxed THB1,792 per month or around THB21,500 per year. 

Alternatively, you can calculate your own income tax using the data above. Many financial investment websites, including UOB, also have a handy tax calculator to give you an idea on how much taxes you have to pay each year. 

Although the calculator is free to use, UOB will offer you financial products after you get your results. But you can ignore that part.

Corporate Income Taxes

This article is mainly about personal income taxes. 

However, if you run a business in Thailand, check out our article on Taxes You Have to Deal with as a Business Owner in Thailand.

Disclaimers

Please note that while this article can give you a good overview of taxes for foreigners in Thailand, we are not tax lawyers or tax advisors. The article was written based on our experience and in-depth research. Afterward, it was reviewed by Thai accountants and tax advisors.

However, mistakes can still happen, and you are fully responsible for your own tax.

Since there are many factors related to taxes, including your country of residence, source of income, your Thailand tax resident status, and more, we recommend you talk with a tax advisor to get personalized advice for your situation.

Now, on to You

Getting used to a new country while familiarizing yourself with its laws and rules on taxes can be a difficult task, but having the right resources can make it easier. 

Make sure you organize and classify your different sources of income, and then check what your liabilities are and what your tax rates for each source is. 

Also, taxes must be submitted in Thai, so you’ll be requiring the services of a Thai accountant. Make sure you ask them any questions you’re unsure of to cover all your bases.

Taking stock of what we’ve laid out above will provide you with peace of mind as you navigate Thailand’s personal income tax system and get accustomed to the country’s unique way of life.

For more insider tax guides for expats in Thailand, check out ExpatDen Premium and get instant access to these guides:

• How to Handle and Decrease Your Thai Income Taxes While Working in Thailand
• How to Amend Your US Taxes from Thailand
• How to Avoid Thailand Custom’s Tax
• and much more…