Thailand Income Tax Rates
Thailand is renowned for its breathtaking landscapes and rich cultural heritage. However, understanding the country’s tax laws can be a daunting task for foreigners. That’s where we come in! This guide will walk you through key facts about managing foreign taxes in Thailand, helping you stay compliant while maximizing potential benefits.
Going to Thailand
- Tax Year: January 1 to December 31
- Tax Deadline: March 31 for e-filing (April 30 for paper filing)
- Currency: Thai Baht (THB)
- Primary Language: Thai
- Tax Treaty: Yes
- Totalization Agreement: No
- Joint Filing: Not available
- Tax Extensions: Only in rare circumstances
Thailand Income Tax Rates
Thailand’s personal income tax rates are progressive, ranging from 0% to 35%.
| 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% |
Who Pays Taxes in Thailand?
In Thailand, residents are taxed on their worldwide income. Non-residents are taxed on only Thai-source income, while foreign income is exempt from taxation in Thailand.
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Residency Status in Thailand
Anyone who lives in Thailand for more than 180 days in a single tax year will be considered a resident and taxed on their worldwide income. Anyone who does not meet this standard will be considered a non-resident.
Keep records of your time spent in and outside of Thailand, such as passport stamps, flight tickets, and accommodation receipts. This can help you prove your tax residency status.
Income Subject to Taxation in Thailand
Most forms of income are taxable in Thailand.
- All employment income and benefits are taxable unless explicitly exempted by law.
- All self-employment and business income is taxable unless explicitly exempted by law.
- Investment income is subject to personal income tax rates.
- Employer-provided stock options are taxed if the shares were offered for free or at a discount by the employer.
Capital Gains Tax
In Thailand, capital gains are treated as regular income and taxed at the standard rates. This includes gains from the sale of real property (though there is a standard deductible, depending on how long you owned the property). The good news is that gains derived from securities listed on the Stock Exchange of Thailand are exempt from capital gains tax.
Net Worth Tax
If Thailand’s Revenue Department feels that your income was understated, they reserve the right to impose an additional tax on your net worth. However, this law is rarely exercised.
Inheritance Tax
Inheritance is only taxed if it exceeds THB 100 million per benefactor. The rate for this tax is 5% for a parent or descendant and 10% in all other cases. This tax must be reported within 150 days of receiving the inheritance, or penalties will apply.
Gift Tax
Most gifts in Thailand are taxed at a flat rate of 5%. However, the gift will be exempt from taxation if it is given by a parent, child, or spouse — up to THB 20 million per year. Any amount that exceeds that maximum will be taxed at the standard 5% rate.
Social Security in Thailand
Like the United States, Thailand maintains a social security system. Employees contribute 5% on the first 15,000 THB they earn, and employers match this by paying an additional 5%. Thailand’s government adds an extra 2.5%. If you are self-employed, you must pay both portions (employee and employer) of your social security payments.
Currently, there is no Thailand–US totalization agreement. As a result, some US expats pay into both social security systems during their time in Thailand.
Filing and Paying Taxes in Thailand
In Thailand, income taxes owed by an employee are withheld by the employer. However, just like in the US, you will still have to file an annual tax return to calculate your actual tax liability. (This will also allow you to claim any tax deductions you may be eligible for!)
Some self-employed individuals, including certain professionals and those engaged in the rental of property, must make an interim income tax payment in September.
Double Tax Relief and Tax Treaties
Thailand and the US have a tax treaty to help prevent double taxation. In addition to this, Americans living in Thailand can also claim IRS expat tax benefits, such as:
Using these benefits, most Americans living and working abroad can reduce their US tax bill to zero.
Get Help with Your US Taxes while Living in Thailand
Greenback Expat Tax Services can help you make the most of your deductions and navigate the confusing tax situations of expats living abroad. File with us, and our tax experts will help you save money while fully complying with Thailand’s tax requirements.
Contact the Greenback team, and one of our Customer Champions will gladly help. If you need concrete advice on your tax situation, you can also click below to get a consultation with one of our expat tax experts.
