Articles

Thailand’s Taxation System

By Celestine Loh, Date published: 2020-12-09

Everything you need to know about how Thailand’s taxation system works

A country that has risen and proven to be a global tourism hub, Thailand has made significant economic and social progress, owing to their smart economic policies. Thailand’s taxation system originates from its Revenue Code that consists of the framework for personal and corporate income taxes. Additionally, taxes are also structured against the Customs Act, Excise Act and the Petroleum Income Tax Act.

Thailand gets its main internal source of income from its tax revenue, it accounts for a total estimate of 85% – 90% of inland revenue. 

The Revenue Department under the Ministry of Finance is responsible for overseeing taxation-related activities in Thailand. The country’s tax calendar follows the regular calendar year, 1st January to 31st December. Each individual who is required to pay taxes within Thailand must register and obtain a tax ID number, this can be applied for through the Thailand Tax Office. 

Regarding personal income tax, a taxpayer under Thailand’s taxation system is classified as either a resident or a non-resident. A resident is any person that resides in Thailand for 180 days or more accumulative within a calendar year. A resident is expected to pay taxes on his income that is sourced within Thailand or has been brought into Thailand from overseas sources. Every other person that does not fall under the former category is considered a non-resident and he will be taxed only on Thailand-sourced income.

For corporate income taxes, a company or juristic partnership that has been incorporated under Thai law is considered eligible for payment of Thailand’s taxes. 

Personal Income Tax:

Level of Income (in Thailand Dollars, Baht)

Tax Rate

Up to 150,000

0%

From 150,000 to 300,000

5%

From 300,000 to 500,000

10% 

From 500,000 to 750,000

15% 

From 750,000 to 1,000,000

20%

From 1,000,000 to 2,000,000

25%

From 2,000,000 to 5,000,000

30%

Above 5,000,001

35%

*Additionally, for persons over the age of 65, he/she is exempted from taxes on their first 190,000 Baht of taxable income. 

Corporate Income Tax:

Level of Income (in Thailand Dollars, Baht)

Tax Rate

Up to 300,000

0%

From 300,001 to 3,000,000

15%

Above 3,000,000

20% 

This article does not constitute legal advice.

The opinions expressed in the column above represent the author’s own.

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READ MORE: A Guide to Singapore’s Taxation System

FURTHER READING: Guide to Cayman Island’s Taxation System

Tags: Corporate Tax | personal income tax | taxation system | Thailand

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