Personal Income Tax in Thailand
Under section 41 of the Revenue Code an individual Thai citizen or foreigner who lives in Thailand for one or more periods totaling at least 180 days in any tax (calendar) year is, for tax purposes, deemed a resident of Thailand and subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand, and on assessable income derived from foreign sources to the extent that it is brought into Thailand in a year in which income is received. A non-resident individual is subject to tax only on assessable income from Thai sources, regardless of payment location.
Personal income tax is imposed at a progressive rate ranging from 5 percent to 37 percent. Every person, resident or non-resident, who derives assessable income from employment or business in Thailand, or has assets located in Thailand, is subject to personal income tax, whether such income is paid in or outside of Thailand. Capital gains arising from transfer of assets (like property) is taxable income. There is no specific capital gains tax in Thailand. Capital gains are subject to tax in the same manner as any other forms of income.
An individual must file annual income tax returns not later than the end of March of the following year. Half-year income tax returns are required for individuals who earn certain types of income such as rent, professional fees, income from construction, income from sales of goods, etc. The half-year income tax returns must be filed not later than the end of September of the respective tax year. An Individual who fails to file his/her annual tax return is subject to a penalty of twice the amount of the tax due plus a surcharge of 1.5% per month of the tax due. In the case of an improperly filed tax return, the individual will have to pay a one-time penalty in the amount of the tax due and a surcharge of 1.5% per month of the tax due.
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New year 2013 personal income tax rates in Thailand
December 2012; the cabinet approved a new personal income tax structure which slashes the maximum tax rate from 37% to 35%The new tax rate in Thailand will take effect in the 2013 tax year.
- Income between 0 to 150,000 baht is exempt
- Income between 150,000 to 300,00 has a tax new tax rate of 5%
- Income between 300,000 to 500,000 is 10 %
- Income between 500,000 to 750,000 has a new rate of 15%
- Income between 750,000 to 1,000,000 remains at 20%
- Income between 1,000,000 to 2,000,000 has a new rate of 25%
- Income between 2,000,000 to 4,000,000 remains at 30%
- Income from 4,000,001 upward has a new rate of 35 % (slashed from 37%)
source Ministry of Finance
Thai government cuts income tax rates
Bangkok-post December 19 2012
The cabinet Tuesday approved an overhaul of the personal income tax structure amid criticism that the changes benefit mainly the rich.The change will slash the highest personal income tax rate to 35 per cent, down from 37 per cent, effective on 2013 tax returns filed in 2014.
The restructuring will cut the government's revenue in the 2013 fiscal year by 25 billion baht ..... .... ...........
Published: November 19, 2012 (Bangkok-post)
- Thailand Revenue Code (tax law/ revenue code translation)
- Personal income tax (explained by the revenue department external website, opens in new window)