Foreigners working legally in Thailand face tighter tax regulations as the Thai government moves to align its tax system with international standards.
With over 3.3 million foreign workers registered as of August 2024, Thai authorities are stepping up enforcement to ensure all individuals, foreign workers included, earning income comply with personal income tax obligations.
Under Thai tax law, a foreigner who resides in the country for 180 days or more in a calendar year is considered a tax resident. This means they are liable to pay tax on all income, whether earned in Thailand or abroad. Non-residents, by contrast, are taxed only on income sourced within Thailand. The personal income tax system is progressive, with rates ranging from 5% to 35% depending on net income after deductions.
Personal income tax rates
Thailand uses a progressive personal income tax system, where the tax rate increases with the amount of net income (after deductions and allowances). The current tax brackets are as follows:
- Net income 0 – 150,000 baht: Exempt from tax (must still report to the Revenue Department)
- Net income 150,001 – 300,000 baht: Taxed at 5%
- Net income 300,001 – 500,000 baht: Taxed at 10%
- Net income 500,001 – 750,000 baht: Taxed at 15%
- Net income 750,001 – 1,000,000 baht: Taxed at 20%
- Net income 1,000,001 – 2,000,000 baht: Taxed at 25%
- Net income 2,000,001 – 5,000,000 baht: Taxed at 30%
- Net income over 5,000,000 baht: Taxed at 35%
Foreign nationals are entitled to many of the same tax deductions as Thais. These include a personal allowance of 60,000 baht, spousal (for married people, maximum of 60,000 baht) and child deductions (maximum of 30,000 baht per child but no more than 3), and deductions for investments such as provident funds and life insurance. Annual tax returns must be filed using form PND 90 or 91 by 31 March of the following year.
Thailand has signed double taxation agreements (DTAs) with more than 60 countries. These treaties help prevent foreigners from being taxed twice on the same income.
Foreign employees must also contribute to Thailand’s social security system, with a 5% deduction from their salary, capped at 750 baht per month.
Those operating businesses in Thailand must register for VAT if their annual revenue exceeds 1.8 million baht.
Since January 2024, tax residents must pay income tax on any foreign income brought into Thailand, regardless of when it was earned. This marks a significant shift from the previous rule, which taxed only income remitted in the same year it was earned. Authorities are also considering broader reforms that could see Thailand adopt a full worldwide income taxation model.
