Thailand income tax regime is governed by the Revenue Code B.E. 2481 (1938) and administered by the Revenue Department of the Ministry of Finance. The Thai tax system follows a self-assessment model, under which individuals and companies are responsible for calculating and reporting their taxable income annually.
The core principle of the personal income tax system in Thailand is residency-based taxation, but non-residents are also taxed on income earned in Thailand, whether from employment, services, or business. Moreover, in 2024, a critical change was introduced regarding foreign-sourced income—altering how Thailand treats funds remitted into the country by tax residents.
This article provides a comprehensive breakdown of Thailand's income tax system, covering tax residency, types of assessable income, rates, filing requirements, deductions, foreign income rules, and penalties for non-compliance.
Revenue Code of Thailand B.E. 2481 (1938)
Ministerial Regulations, Royal Decrees, and Board of Taxation rulings
The Revenue Department (RD) under the Ministry of Finance
Website: www.rd.go.th
Under Section 41 of the Revenue Code:
A person who stays in Thailand for 180 days or more in any calendar year is considered a tax resident.
Tax residents are taxed on worldwide income, subject to remittance and timing.
Individuals staying less than 180 days in a year are non-residents.
Non-residents are taxed only on Thai-sourced income, regardless of where it is paid or received.
Thailand classifies personal income into eight categories:
| Section 40(1) | Employment income (salaries, wages, bonuses) |
|---|---|
| Section 40(2) | Income from hire of work, services (freelance, consulting) |
| Section 40(3) | Royalties (intellectual property, licenses) |
| Section 40(4) | Dividends, interest, capital gains |
| Section 40(5) | Rental income (land, buildings, vehicles) |
| Section 40(6) | Professional services (doctors, lawyers, architects) |
| Section 40(7) | Income from construction, subcontracting |
| Section 40(8) | Other business income (retail, manufacturing, agriculture) |
All forms of income must be declared, including in-kind benefits (such as housing allowances, use of company cars, etc.).
| Net Taxable Income (THB) | Tax Rate (%) |
|---|---|
| 0 – 150,000 | Exempt |
| 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% |
Foreign nationals are taxed under the same rates as Thai nationals. Thailand does not have joint filing; spouses must file separately.
Self: THB 60,000
Spouse: THB 60,000 (if no income)
Children: THB 30,000 per child (additional for education)
Parent support: THB 30,000 per parent
| Income Type | Standard Deduction |
|---|---|
| Employment | 50% (up to THB 100,000) |
| Freelance/Services | 50–70% depending on service |
| Rent | 30% |
Social security contributions (up to THB 9,000)
Life insurance premiums (up to THB 100,000)
Provident fund and RMF/SSF contributions
Home loan interest (up to THB 100,000)
Thailand historically taxed foreign-sourced income only if remitted into Thailand in the same year it was earned. As of 1 January 2024, the Revenue Department revised its position:
All foreign income remitted to Thailand is now taxable in the year it is brought into the country, regardless of when it was earned.
Foreign retirees
Remote workers and freelancers paid offshore
Thai residents with offshore investments (dividends, capital gains)
Crypto holders repatriating foreign-exchange income
Failure to declare and pay tax on remitted foreign income may result in back taxes, penalties, and criminal charges.
Certain payments are subject to withholding at source, including:
Salaries, consulting fees (3%–5%)
Dividends (10%)
Royalties (15%)
Thailand has over 60 double taxation agreements (DTAs) with countries including the U.S., U.K., Australia, Singapore, and Japan.
DTAs allow for:
Tax credits on foreign tax paid
Reduction or exemption of WHT
Preventing double taxation on income such as pensions and dividends
| Tax Type | Deadline |
|---|---|
| Personal income tax | By 31 March each year (for income from previous year) |
| Mid-year tax (optional for freelancers/businesses) | 30 September |
Returns can be filed online via www.rd.go.th
Tax can be paid at:
Thai banks
Online via the Revenue Department’s e-filing system
Installment plans available if approved by the Revenue Department
| Offense | Penalty |
|---|---|
| Failure to file return | THB 200–2,000 fine |
| Late payment of tax | 1.5% monthly surcharge (max 100%) |
| Understatement or evasion | 100% of tax due (civil penalty) + interest |
| Fraudulent evasion | Imprisonment of up to 1 year or fine up to THB 200,000 (or both) |
The Thai Revenue Department has audit and enforcement powers, including bank account inspection and tax raids in serious cases.
| Situation | Tax Impact |
|---|---|
| Foreign employee of Thai company | Fully taxable under Section 40(1) |
| Foreign freelancer working in Thailand | Taxable if resident ≥180 days |
| Director’s fees or consultancy from abroad | Taxable upon remittance into Thailand |
| Non-resident with rental income from Thai property | Taxed at source; may file return to adjust |
| Thai permanent resident | Taxed like Thai national, on global income if remitted |
Thailand’s income tax system is structured, codified, and residency-based, offering progressive rates, numerous deductions, and treaty protections—while also demanding strict compliance and documentation. The recent shift in the taxation of foreign-sourced income, effective 2024, has significantly impacted tax planning for expatriates, retirees, and digital workers, making accurate reporting and remittance tracking more important than ever.
For both Thai and foreign taxpayers, understanding the residency rules, income classifications, and reporting obligations is key to lawful and tax-efficient living or doing business in Thailand.