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How much tax do expats pay in Thailand?
As mentioned in the previous article, expats or foreigners living in Thailand pay the income tax at the same rates as Thais. But there’s a small difference between resident & non-resident taxpayers and the types of income earned.
Progressive personal income tax rates in Thailand for residents
Thailand, like many other countries, uses progressive tax rates for personal income tax – a system where tax rates increase as your taxable income goes up.
The first 150,000 THB of your net income is not taxed (this number is increased to 190,000 THB for residents aged 65 and older). The current tax rates for resident taxpayers are as follows:
| Taxable income (THB) | Tax rate |
|---|---|
| 0 to 150,000 | Exempt |
| 150,001 to 300,000 | 5% |
| 300,001 to 500,000 | 10% |
| 500,001 to 750,000 | 15% |
| 750,001 to 1,000,000 | 20% |
| 1,000,001 to 2,000,000 | 25% |
| 2,000,001 to 5,000,000 | 30% |
| Over 5,000,000 | 35% |
Determining the income tax rates on employment income (type 1) derived from Thailand (both for resident & non-resident taxpayers) is straightforward as all of it is assessable (see exemptions in the previous article).
It gets a bit trickier with the remaining types of income. If your income from types 2-8 is larger than 60,000 THB per year, you will have to calculate the amount of tax by multiplying your assessable income by 0.5 and comparing it with the amount of tax calculated by progressive tax rates. You will then have to pay the greater amount.
Personal income tax rates for non-residents
Non-resident taxpayers earning employment income in Thailand pay income tax at the same progressive tax rates as residents. They can also claim a personal allowance for themselves (and their spouse and children if they resided in Thailand in the said tax year).
Income other than employment income may be taxed at a flat rate of 15% (usually withheld at the source).
Sample tax rate calculation
For example, if your taxable income after all deductions was 1,400,000 THB, your tax rate table would look as follows:
| Taxable income (THB) | Tax rate | Income in the bracket | Tax (THB) |
|---|---|---|---|
| 0 to 150,000 | Exempt | 150,000 | 0 |
| 150,001 to 300,000 | 5% | 150,000 | 7,500 |
| 300,001 to 500,000 | 10% | 200,000 | 20,000 |
| 500,001 to 750,000 | 15% | 250,000 | 37,500 |
| 750,001 to 1,000,000 | 20% | 250,000 | 50,000 |
| 1,000,001 to 2,000,000 | 25% | 400,000 | 100,000 |
| Total tax | 250,000 | ||
| Effective rate | 17.86% |
You can visit Revenue Department’s website for more information.
