Taxation in Thailand may be a complicated and difficult procedure, particularly for international companies operating in the country. The tax system in Thailand functions based on self-assessment, where taxpayers are responsible for reporting their tax obligations in designated tax forms and settling the due taxes upon submission. In this guide, we will simplify the complexities of Thailand’s personal tax framework by offering comprehensive overviews of:
- Thailand personal tax computation
- Assessable income
- Individual tax rates in Thailand
- Deductions and allowances
- RBA Thailand personal tax calculator
Personal tax computation
Under the Thai Revenue Code, residents and non-residents are obligated to pay taxes on all income earned within Thailand, regardless of whether it is received domestically or abroad. Moreover, income generated outside of Thailand becomes taxable if it is remitted into the country within the same tax year it was earned. The personal taxable income is calculated by:
Taxable income = Assessable Income – deductions – allowances
Thailand assessable income
According to the Thai Revenue Code, assessable income in Thailand is classified into eight categories as follows:
- income from personal services rendered to employers;
- income by virtue of jobs, positions or services rendered;
- income from goodwill, copyright, franchise, other rights, annuity or income in yearly payments derived from a will or any other juristic Act or judgment of the Court;
- income in the nature of dividends, interest on deposits with banks in Thailand, shares of profits or other benefits from a juristic company, juristic partnership, or mutual fund, payments received as a result of the reduction of capital, a bonus, an increased capital holdings, gains from amalgamation, acquisition or dissolution of juristic companies or partnerships, and gains from transferring of shares or partnership holdings;
- income from letting of property and from breaches of contracts, installment sales or hire-purchase contracts;
- income from liberal professions;
- income from construction and other contracts of work;
- income from business, commerce, agriculture, industry, transport or any other activity not specified earlier.
Individual tax rates in Thailand
Thailand employs a progressive tax system for personal income tax, the rates of which are as follows:
| Taxable income (THB) | Tax rate |
| 0 – 150,000 | Exempted |
| 150,001 – 300,000 | 5% |
| 300,001 – 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,001 – 1 million | 20% |
| 1,000,001 – 2 million | 25% |
| 2,000,001 – 5 million | 30% |
| 5,000,001 or more | 35% |
The information provided in the table originates from The Revenue Department
The taxable income of an individual is arrived at after all deductions and allowances have been applied to the assessable income.
Deductions and Allowances
Deductions allowed for the calculation of personal income tax:
| Type of Income | Deduction |
| a. Income from employment | 40% but not exceeding 60,000 baht |
| b. Income received from copyright | 40% but not exceeding 60,000 baht |
| c. Income from letting out of property on hire: | |
| 1) Building and wharves | 30% |
| 2) Agricultural land | 20% |
| 3) All other types of land | 15% |
| 4) Vehicles | 30 |
| 5) Any other type of property | 10% |
| d. Income from liberal professions | 30% except for the medical profession where 60% is allowed |
| e. Income derived from contract of work whereby the contractor provides essential materials besides tools | actual expense or 70% |
| f. Income derived from business, commerce, agriculture, industry, transport, or any other activities not specified in a. to e. | actual expense or 65% – 85% depending on the types of income |
The information provided in the table originates from The Revenue Department
Allowances allowed for the calculation of personal income tax:
| Types of Allowances | Amount |
| Personal allowance | |
| Single taxpayer | 30,000 baht for the taxpayer |
| Undivided estate | 30,000 baht for the taxpayer’s spouse |
| Non-juristic partnership or body of persons | 30,000 baht for each partner but not exceeding 60,000 baht in total |
| Spouse allowance | 30,000 baht |
| Child allowance (child under 25 years of age and studying at educational institution, or a minor, or an adjusted incompetent or quasi-incompetent person) | 15,000 baht each |
| (limited to three children) | |
| Education (additional allowance for child studying in educational institution in Thailand) | 2,000 baht each child |
| Parents allowance | 30,000 baht for each of taxpayer’s and spouse’s parents if such parent is above 60 years old and earns less than 30,000 baht |
| Life insurance premium paid by taxpayer or spouse | Amount actually paid but not exceeding 100,000 baht each |
| Approved provident fund contributions paid by taxpayer or spouse | Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht |
| Long term equity fund | Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht |
| Home mortgage interest | Amount actually paid but not exceeding 100,000 baht |
| Social insurance contributions paid by taxpayer or spouse | Amount actually paid each |
| Charitable contributions | Amount actually donated but not exceeding 10% of the income after standard deductions and the above allowances |
The information provided in the table originates from The Revenue Department
Looking for assistance with your Thailand personal tax calculations?
We hope that this guide streamlines the Thai personal tax system and assists you in understanding the complex tax rates in the region. For an estimation of your Thailand taxes, please refer to the RBA online Thailand Tax Calculator.
If you require additional tax assistance or information for your Thai company, please do not hesitate to contact us. Startups have to manage numerous company accounts and tax filings over the years, and our professionals are highly skilled in taxation and auditing. Reach out to RBA today for expert support!
