Personal Income Tax in Thailand: A Complete Guide for Expats and Residents

Who is a Tax Resident of Thailand?

The taxation of individual income in Thailand depends on their tax status and the type of income they receive.

Anyone who stays in Thailand for 180 days or more in a tax year is considered a tax resident, according to Section 41 of the Thai Revenue Code. The tax year corresponds with the calendar year.

Non-residents of Thailand must pay tax on income originating from sources within Thailand.

Residents are taxed on:

(i) Income earned or generated in Thailand, regardless of whether it is paid (received) within or outside Thailand; and

(ii) Income earned or generated outside Thailand, if it is remitted to Thailand.

Income from Thailand

Income from Thailand includes but is not limited to, income from sources within the country, such as:

• Wages or other income for work performed in Thailand;
• Income from conducting business in Thailand;
• Income from property in Thailand, including rental payments;
• Interest received in Thailand;
• Dividends from Thai companies, etc.

It’s important to note that such income is subject to taxation in Thailand, regardless of the location of the income payment and the individual’s tax residency status. Even if the income is paid outside of Thailand, it may still be subject to taxation in Thailand. However, tax exemptions may be available under certain double taxation avoidance agreements.

Revised Taxation Rules for Foreign Income in Thailand (Effective 2024)

Thai tax residents are obligated to pay taxes on income earned within the country and on foreign income transferred to Thailand.

Per the second paragraph of Section 41 of the Thai Revenue Code, a Thai tax resident who received taxable foreign income in the previous tax year must pay tax upon the receipt of such income in Thailand.

Until January 1, 2024, a longstanding practice established in the mid-1980s was followed: foreign income transferred to Thailand in the tax year following its receipt was not subject to income tax. This approach was formalized in Decision No. 2/2528 (February 21, 1985) and Order No. Gor. Kor. 0802/696 (May 1, 1987) issued by the Revenue Department.

For decades, both tax authorities and Thai taxpayers adhered to this interpretation. Income earned abroad was not taxed if it was transferred to Thailand in the following calendar year — a rule widely used in tax planning by individuals with business or assets overseas.

However, on September 15, 2023, the Revenue Department issued Order No. Por. 161/2566, revising the interpretation of Section 41. Under the new interpretation, effective January 1, 2024, any foreign income transferred into Thailand is taxable — regardless of the year in which it was earned.

This policy shift sparked legal and practical concerns, particularly over whether it aligns with Section 41 (which refers to income received in the previous tax year) and Section 56 (which governs tax return filing based on the prior year’s income). Questions also arose about how Thailand’s tax treaties would apply, and whether tax forms and procedures would be updated accordingly.

In response to the outcry, the Revenue Department responded with  Order Por. 162/2566, issued on November 20, 2023, confirming that income earned before January 1, 2024 would remain exempt — even if transferred to Thailand after that date. This “grandfathering” clause remains in effect.

From Expansion to Exemption: Thailand’s Changing Approach to Foreign Income (2023–2025)

2024: Plans to Tax All Worldwide Income

In mid-2024, it appeared that Thailand was preparing to further expand its tax regime. On June 5, 2024, the Bangkok Post reported that the Revenue Department was exploring reforms that would tax all foreign income — regardless of remittance. A follow-up report on September 6, 2024 confirmed that a draft law was in the works to require all tax residents (i.e., those residing in Thailand for 180 days or more per year) to pay tax on their worldwide income. This step was presented as part of a broader effort to modernize the tax system and align it with international standards.

2025: Proposed Shift Towards Exemption (Currently Paused)

In May 2025, media reports indicated that the government was preparing to reintroduce a partial exemption for foreign-sourced income.

On August 4, 2025, the Revenue Department Director-General, Mr. Pinsai Suraswadi, announced plans to finalize a new law by the end of 2025, with an intended start date of January 1, 2026. However, the legislative process was suspended following the dissolution of the House of Representatives.

Under the proposal, foreign-sourced income would be exempt from personal income tax if remitted to Thailand within two years of being earned. It was also suggested that the law might apply retroactively, although final details were never officially released.

If enacted, this policy shift would effectively reverse the strict approach of Order No. Por.161/2566, which had discouraged remittances. It reflected the administration’s goal of boosting capital inflows by encouraging the repatriation of an estimated ฿2 trillion in offshore assets — prioritizing economic stimulus over tax collection.

For a detailed explanation and examples of the proposed changes, see:

Thailand to Relax Tax Rules on Foreign Income Remittance

Tax Benefits for LTR Visa Holders

Thailand’s Long-Term Resident (LTR) Visa program, launched on September 1, 2022, provides a range of tax and non-tax benefits aimed at attracting high-potential foreigners. These tax benefits are detailed in Royal Decree No. 743 under the Revenue Code.

Foreign-Sourced Income Exemption

LTR Visa holders classified as Wealthy Global Citizens, Wealthy Pensioners, and Work-from-Thailand Professionals are exempt from Thai income tax on income sourced from abroad. This exemption applies to assessable income under Section 40 of the Revenue Code for the previous tax year, including income from employment, business activities conducted overseas, or from assets located abroad that are brought into Thailand.

17% Flat Tax Rate for Highly-Skilled Professionals

Professionals working in specified industries within Thailand who hold an LTR Visa qualify for a 17% flat personal income tax rate. To access this benefit:

• The employer must notify the tax authority about the employee’s eligibility.
• Upon notification, the benefit becomes active.
• Employers withhold tax from the employee’s salary at the 17% rate.
• Employees are required to file an annual tax declaration for this income.

Additional Information:

• Income unrelated to the LTR scheme must be declared separately.
• The 17% rate applies only to income earned after notification to the tax authority and excludes income not derived from employment activities.
• Non-compliance with requirements, like timely tax declarations, can lead to the loss of the preferential rate, reverting to the standard progressive tax scale.

Taxable Income Types

In Thailand, assessable income is categorized into eight distinct types:

1. Salaries and Wages: This includes income from stock options, house rent allowances, and other fringe benefits.
2. Hire of Work, Office of Employment, or Services Rendered: Income earned from providing professional services or employment duties.
3. Goodwill, Copyright, Franchise, Patent, and Other Rights: This category also includes annuities and similar income types.
4. Investment Returns and Gains: This covers interest, dividends, bonuses for investors, gains from amalgamation, acquisition, or dissolution of a company or partnership, and gains from the transfer of shares, cryptocurrencies, or digital tokens.
5. Lease of Property and Contract Breaches: Income derived from property leasing, and breaches of hire-purchase and installment sale contracts.
6. Professional Services Income: Earnings from professions like law, medicine, engineering, architecture, accountancy, and fine arts.
7. Contract Work with Material Provision: Income from contracts where the contractor provides essential materials (excluding tools).
8. Business and Commercial Income: Earnings from business, commerce, industry, and any other income not specified in categories (1) through (7).

Capital gains

In Thailand, capital gains are usually taxed like regular income. However, there are some exceptions where you don’t have to pay tax:

1. Stock Exchange of Thailand: If you sell shares listed here, these gains are not taxed.
2. Mutual Funds: Selling investment units in mutual funds also comes without tax.
3. Specific Financial Instruments: Some financial instruments like non-interest-bearing debentures, if sold, don’t attract tax.
4. ASEAN Stock Exchanges: Gains from securities traded on these exchanges are tax-free, except for certain types like treasury bills.

Personal Income Tax Rates in Thailand

Thailand employs a progressive tax rate system, which means that the tax rate increases as the taxable income increases.

Personal Income Tax Rates in Thailand

Notes:

*Marginal Tax: This represents the tax on the additional income earned when moving into a higher tax bracket. For instance, if your income is 300,001 THB, you pay a 5% tax on the income exceeding 150,000 THB (i.e., on the amount from 150,001 to 300,001 THB).

**Cumulative Tax: This is the total tax paid on your entire income. It accumulates as your income increases and you progress through the tax brackets. For example, with an income of 300,001 THB, the cumulative tax includes no tax on the first 150,000 THB and a 5% tax on the next 150,001 THB.

Tax Deductions and Allowances in Thailand

Thailand’s personal income tax system offers various deductions and allowances to help reduce your taxable income. These apply to Thai citizens as well as tax residents, including qualifying foreigners.

Note: Tax rules can change. This information may not reflect the very latest updates—please verify with a tax advisor or the Revenue Department before making decisions.

Below is a summary of the current deductions and personal allowances available in Thailand:

Standard Expense Deductions

Personal and Dependent Allowances

Insurance Deductions

Retirement and Investment Funds

Other Deductions

Special Schemes and Incentives

If you are unsure how to apply these deductions in your tax return—or if you’re a foreigner with cross-border income—it may be wise to consult a tax professional.

Tax Calculator

A convenient tax calculator can be found on the UOB Asset Management website.

Taxation of Dividends

Dividends received from a company registered in Thailand are subject to a 10% withholding tax.

For non-residents receiving dividends from a company registered in Thailand, this rate may be reduced under a double taxation avoidance agreement between Thailand and the individual’s country of residence.

A Thai resident receiving dividends from Thai-registered companies can choose between two options:
1) Pay a 10% tax and not include the dividend income in their tax declaration.
2) Include this income in their tax declaration. In this case, the tax amount will depend on the total annual income. The 10% tax paid will be credited against the tax liability (tax credit).

When Do Foreigners Need a Tax Identification Number (TIN) in Thailand?

All individual taxpayers earning assessable income in Thailand — including foreigners — are required to obtain a Tax Identification Number (TIN). This obligation also applies to ordinary partnerships and undivided estates.

According to the Revenue Department’s announcement dated October 11, 2002, a TIN application must be submitted within 60 days from the date assessable income is received in Thailand.

However, short-term visitors — defined as foreigners staying in Thailand for no more than 14 consecutive days or 90 days in total during a tax year — are exempt from this requirement.

Importantly, tax residency alone does not trigger the need to obtain a TIN. The requirement arises only when the individual earns assessable income in Thailand. This corrects a common misconception sometimes repeated by consultants.

How to Apply for a TIN

Foreigners can apply for a TIN at their local Revenue Department office by submitting the following:

• Valid passport, including visa or visa exemption stamp
• Proof of address, such as a rental agreement, house registration (Tabien Baan), or similar document, along with a copy of the landlord’s Thai ID card
• Proof of income, such as an employment agreement, salary slip, service contract, or invoice (translated into Thai, if necessary)

Applicants must complete and submit Form L.P. 10.1 along with the required documents.

Due to language and procedural differences, it is advisable to seek professional assistance or bring a Thai-speaking companion when visiting the Revenue office.

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Filing Tax Declarations in Thailand

All individuals with income are required to file a tax return. The deadlines are as follows:

• For Paper Filing: The tax return must be filed no later than March 31 of the following year.
• For Online Filing: The deadline extends to April 8 of the following year.

Exceptions to Filing Requirements:

• Individuals whose income from employment is THB 120,000 or less for single persons, or THB 220,000 or less for married persons.
• For those with other sources of income (with or without employment income), the threshold is THB 60,000 for single persons and THB 120,000 for married persons.

Business Income Filings:

• Individuals engaged in most business activities must file a declaration for their income of the first six months of the year by September 30 and settle the due tax.

Filing Options for Married Individuals:

• Married individuals can choose to file income tax returns either separately or jointly with their spouse.

Gift Tax in Thailand

Personal Income Tax applies to gifts based on the relationship between the giver and recipient and the type of gift. Tax is only levied on gifts that exceed certain thresholds.

Exemptions and Thresholds:

• Immovable Property Transfers to Legitimate Children:
  Parents can transfer immovable property (e.g., land, buildings) to their legitimate children (not adopted children) tax-free, up to THB 20 million per year.
• Gifts from Ascendants, Descendants, or Spouse:
  Gifts or maintenance income from ascendants, descendants, or a spouse are exempt from tax up to THB 20 million per year.
• Gifts from Non-Relatives (Moral Obligations, Ceremonies):
  Gifts from non-relatives given on traditional or moral occasions are exempt up to THB 10 million per year.
• Public Benefit Gifts:
  Gifts for religious, educational, or public benefit purposes may be fully exempt if they meet regulatory conditions set by ministerial regulations.

Tax on Excess Amounts:

Any portion of a gift exceeding the exemption thresholds is taxed at a flat rate of 5%, separate from regular income tax.

Taxation of Rental Income

15% for non-residents

Both residents and non-residents earning rental income in Thailand are required to pay income tax. In general, a 15% withholding tax is deducted when paying rental income to a non-resident.

How to Reduce Tax

This tax can be reduced if the foreign property owner has registered the property in their name. To do so, one must obtain a tax identification number (TIN) in Thailand and file a tax declaration. The withheld tax is credited as a tax offset. Filing the declaration allows for a refund of any overpaid taxes. Property owners are entitled to a standard deduction of 30% of the rental income. Alternatively, there is an option to deduct actual incurred expenses that were necessary and reasonable, provided these expenses are documented. When combined with a personal deduction of 60,000 Baht, this can significantly reduce the tax burden for non-residents. Tax refunds are not automatic and must be requested. Taxation follows a progressive scale.

Benefits of Declaring Rental Income: Example Calculation

Scenario:

• A foreigner rents out an apartment for 40,000 Baht per month.

Calculation Breakdown:

1. Annual Rental Income
   • Monthly rent: 40,000 Baht
   • Annual income: 40,000 Baht x 12 = 480,000 Baht
2. Withholding Tax (15%)
   • Tax amount: 480,000 Baht x 15% = 72,000 Baht
3. Standard Deduction (30%)
   • Deduction amount: 480,000 Baht x 30% = 144,000 Baht
4. Personal Deduction
   • Deduction amount: 60,000 Baht
5. Taxable Income Calculation
   • Income after deductions: 480,000 Baht – (144,000 Baht + 60,000 Baht) = 276,000 Baht
6. Applying Tax Rates
   • First 150,000 Baht: 0% tax = 0 Baht
   • Remaining 126,000 Baht (276,000 – 150,000): 5% tax = 6,300 Baht
7. Total Tax Payable
   • Calculated tax: 6,300 Baht

Result:

• Final Tax Liability: 6,300 Baht
• Withheld Tax: 72,000 Baht
• Excess Tax to be Refunded: 72,000 Baht – 6,300 Baht = 65,700 Baht
• Effective Tax Rate: Approximately 1.31%

Thailand Revenue Department’s Guide for Foreigners

In May 2024, the Thailand Revenue Department released a guide on income tax payment for foreigners. You can download it using the link below:

“How Do Foreigners Living in Thailand Pay Tax?”

When Do Thai Banks Report Account Information to Tax Authorities?

Under Thai law, financial institutions, state financial institutions, and electronic payment service providers must report account information to the Revenue Department when one of the following conditions is met:

1. 400+ Transactions Totaling 2 Million THB or More

The account has 400 or more incoming transactions in a calendar year, such as deposits or transfers, with a total value of 2 million THB or more.

2. 3,000+ Transactions, Regardless of Amount

The account has 3,000 or more incoming transactions in a calendar year, regardless of the total amount.

What Information Is Reported?

• Identification details: passport number, corporate registration number, taxpayer ID, or other identifying information.
• Name of the account holder: for individuals, partnerships, or other entities.
• Number of transactions: including transfers made through QR codes or mobile applications.
• Total value of all transactions: for the calendar year, regardless of the source.
• Account numbers: for all accounts that received qualifying transactions.

Special Note for Foreign Currency Transactions

If funds are received in a foreign currency, they must be converted into Thai baht. The conversion uses the average buying rate from commercial banks, as calculated by the Bank of Thailand, on the last official working day of the calendar year.

Legal Basis

• Revenue Code Amendment Act No. 48 (B.E. 2562 / 2019)
• Ministerial Regulation No. 355 (B.E. 2562 / 2019)

Related Posts

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Potential Changes to Thailand’s Foreign Income Taxation: What You Need to Know

Thailand’s Long-Term Resident Visa (LTR Visa): A Practical Guide