Anyone who is earning income and is living in Thailand is liable to pay income tax in Thailand. By law, a “resident” is an individual living in Thailand for more than 180 days in a calendar year. A resident is liable to pay tax on income earned in Thailand, as well as income from foreign sources that is remitted in Thailand. A “non-resident” is an individual living for less than 180 days in Thailand and is subject to tax only on income earned in Thailand.
Expats working in Thailand must have their own tax ID number, which will be issued in the tax office. Expats will need to present their passport or other valid IDs, as well as a justification for needing the tax ID number.
Personal income chargeable to income tax is referred to as “assessable income”. This covers both in cash and in kind. Assessable income is classified as follows:
- Income from employment
- Income from position held
- Income from liberal professions
- Income from royalties and dividends
- Income from leasing or renting property
- Income from construction and other work contacts
- Income from business, commerce, agriculture, industry, or transport
Taxpayers are allowed certain deductions and allowances in calculating the taxable income. However, these will be computed by order and the taxpayer shall make deductions from assessable income before the allowances are granted. Taxable income is then calculated by:
TAXABLE INCOME = Assessable Income – Deductions – Allowances
The income tax rates are progressive. Once the taxable income has been calculated, the income tax will be determined by the table below:
Knowing the basics of income taxation in Thailand is essential before moving to Thailand.