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Thailand - Income Tax

Thailand - Income Tax

Taxation of international executives


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Tax returns and compliance

When are tax returns due? That is, what is the tax return due date?

Individual tax returns are due by 31 March following the end of the tax year for paper-based return (8 April for electronically return).

What is the tax year-end?

31 December.

What are the compliance requirements for tax returns in Thailand?


For employment income, a withholding system is in operation, whereby the employer deducts income tax from the employee’s salary or wage before paying it. Employers are responsible for submitting a monthly withholding tax return to the Revenue Department within the first 7 days following the month in which the payment was made. The tax due must be paid at the time of filing the return.

Tax is calculated under the assumption that the payments of employment income are made throughout the entire length of the year. The annual amount of tax is calculated at the progressive tax rates prevailing. This tax is then divided by the number of payments; the result shall be the tax to be deducted.


Same as resident for employment income.

Tax rates

What are the current income tax rates for residents and non-residents in Thailand?


Income tax is calculated by applying a progressive tax rate schedule to taxable income as follows.

Income tax table for 2019

Taxable income bracket Total tax on income below bracket Tax rate on income in bracket
From THB To THB THB Percent
0 150,000 0 0
150,001 300,000 7,500 5
300,001 500,000 20,000 10
500,001 750,000 37,500 15
750,001 1,000,000
50,000 20
1,000,001 2,000,000 250,000 25
2,000,001 5,000,000 900,000 30
5,000,001 Over   35


Employment income shall be taxed at the progressive tax rate, the same tax rate as residents of Thailand.

A non-resident taxpayer is also entitled to claim for personal allowance. Allowances for spouse and child are only available to non-resident if the spouse and child are residents in Thailand in the concerned tax year.

Non-resident may be taxed at 15 percent on gross income for certain income other than employment income.

Residence rules

For the purposes of taxation, how is an individual defined as a resident of Thailand? 

A resident is defined as a person present in Thailand for an aggregate of 180 days or more in any given tax year.

Is there, a de minimus number of days rule when it comes to residency start and end date? For example, a taxpayer can’t come back to the host country/territory for more than 10 days after their assignment is over and they repatriate.


What if the assignee enters the country/territory before their assignment begins?

Provided assignees have not commenced work in Thailand, there should be no tax  and immigration issues.

Termination of residence

Are there any tax compliance requirements when leaving Thailand?

Tax returns must be filed. The only special formalities relating to the termination of residence relate to the individual having to obtain a tax clearance certificate in the following circumstances:

  • aliens who are liable to pay or remit tax which is due or overdue at the time of departure
  • aliens who are liable to pay tax on behalf of foreign companies doing business in Thailand
  • aliens who receive income from being public entertainers in Thailand.

What if the assignee comes back for a trip after residency has terminated?

Provided assignees no longer work for Thailand, there should be no tax and immigration issues.

Communication between immigration and taxation authorities

Do the immigration authorities in Thailand provide information to the local taxation authorities regarding when a person enters or leaves Thailand?  

No (immigration authorities will provide information to local taxation authorities upon request only).

Filing requirements

Will an assignee have a filing requirement in the host country/territory after they leave the country/territory and repatriate?

Departure tax return prior to leaving the country/territory is not required in Thailand. However, a tax return for the year of departure under the normal process is still required should there is income taxable in Thailand. The tax return shall be filed after December but by the end of March of the following year.

Economic employer approach

Do the taxation authorities in Thailand adopt the economic employer approach1 to interpreting Article 15 of the Organisation for Economic Co-operation and Development (OECD) treaty? If no, are the taxation authorities in Thailand considering the adoption of this interpretation of economic employer in the future?

Yes. KPMG in Thailand notes that the Thai tax authority does not refer to economic employer but instead adopts the general rule that is, during the assignment period the assignee works for Thai entity and if the Thai entity absorbs the assignee’s remuneration or the Thai entity sponsor the work permit and visa, the Thai entity is a payer of income and is deemed employer, DTA does not protect.

De minimus number of days

Are there a de minimus number of days2 before the local taxation authorities will apply the economic employer approach? If yes, what is the de minimus number of days? 


Types of taxable compensation

What categories are subject to income tax in general situations?  

As a general rule, all types of remuneration and benefits received by an employee for services rendered constitute taxable income, regardless of where paid, including the following:

  • share option exercises 
  • cost-of-living allowances 
  • accommodation allowances provided 
  • unsubstantiated moving expenses 
  • home-leave payments 
  • children’s education allowances 
  • reimbursed tax 
  • employer payment of income tax 
  • employer provided domestic assistance 
  • subsidized/interest-free loans
  • other remuneration and benefits in relation to Thai employment.

Intra-group statutory directors

Will a non-resident of Thailand who, as part of their employment within a group company, is also appointed as a statutory director (i.e. member of the Board of Directors in a group company situated in Thailand) trigger a personal tax liability in Thailand, even though no separate director's fee/remuneration is paid for their duties as a board member?

No, as there is no separate director's fee/remuneration is paid/received in respect to their duties as the Board of Directors.

a) Will the taxation be triggered irrespective of whether or not the board member is physically present at the board meetings in Thailand?

No, as there is no separate director's fee/remuneration is paid/received in respect to their duties as the Board of Directors.

b) Will the answer be different if the cost directly or indirectly is charged to/allocated to the company situated in Thailand (i.e. as a general management fee where the duties rendered as a board member is included)?

It depends on whether the general management fee included any separate director's fee/remuneration in respect to their duties as the Board of Directors.

c) In the case that a tax liability is triggered, how will the taxable income be determined?

The tax liability is triggered on the amount the individual received or portion of their remuneration received in respect to their duties as the Board of Directors recharged to Thailand.

Tax-exempt income

Are there any areas of income that are exempt from taxation in Thailand? If so, please provide a general definition of these areas

Medical expenses

Medical expenses of an employee and dependent for treatment that takes place in Thailand and medical expenses of employees only for treatment that takes place outside Thailand while temporarily working outside Thailand.

Moving expenses

Substantiated actual moving expenses (moving expenses for the first time to commence the Thai employment and for returning upon termination of Thai employment).

Expatriate concessions

Are there any concessions made for expatriates in Thailand? 

Expatriates working and receiving employment income from a Thai entity with a status of International Business Center (IBC) is taxable in Thailand at a flat tax rate of 15 percent. Expatriates working for the IBC must be in Thailand for at least 180 days and receiving a minimal monthly income of THB200,000 or annual income of THB2,400,000 to qualify for the tax incentive, with the exception for the first and last tax year of employment with the IBC company.

Salary earned from working abroad

Is salary earned from working abroad taxed in Thailand? If so, how?

Salaries receive from employment exercises outside of Thailand are exempt from Thai tax, if not paid in or remitted into Thailand within the same calendar year it is received and provided the cost is not recharged into Thailand.

Taxation of investment income and capital gains

Are investment income and capital gains taxed in Thailand? If so, how?

Most types of capital gains are taxable as ordinary income. Capital gains from the sale of shares in a company listed on the Stock Exchange of Thailand (if the sale is made through a licensed broker) or from the sale of investment units in a mutual fund are exempt from tax. Any capital gain or investment income from sources outside Thailand is not subject to taxation unless a resident taxpayer remitted the process into Thailand within the same calendar year it is received.

Dividends, interest, and rental income

In general, dividend, interest, and rental income from local sources by residents and non-residents are taxable income in Thailand.

Interest earned on savings deposits with a bank in Thailand (which are repayable on demand) is tax-exempt if the interest is below a maximum limit of THB20,000 per year.

A resident of Thailand may elect not to include dividend income in their annual tax return provided that a tax credit /refund on dividend are not requested.

Interest, dividend, and rental income derived from sources outside Thailand by resident of Thailand are taxable in Thailand to the extent such income is paid or remitted into Thailand within the same calendar year it is received. Non-resident is not subject to Thai tax on such income from foreign-sourced, in any case.

Gains from stock option exercises

Residency status

Taxable at:

  Grant Vest Exercise
Resident N N Y
Non-resident N N Y/N

Foreign exchange gains and losses

If income is paid or determined in a foreign currency, the conversion rate as specified by the Revenue Department’s guideline should be used in computing and paying Thai tax. Gain derived from actual exchange is not taxable and loss is not deductible.

Principal residence gains and losses

Gain from principal residence in Thailand is general taxable income to the individual whereas loss is not deductible.

Capital losses

Capital loss is not deductible.

Personal use items

Gain on sale of personal use items is not taxable income to the individual provided it is not for commercial purpose.


Starting on 1 February 2016, gifts from the following are exempt to the recipients from personal income tax:

  • Income derived from the transfer of ownership or possessory right in an immovable property without consideration by the parent to a legitimate, non-adopted child, only for the portion not exceeding B20 million per tax year
  • Income derived from maintenance or gift from ascendants, descendants or spouse, only for the portion not exceeding B20 million per tax year;
  • Income derived from maintenance under moral purposes or gift received in a ceremony or on occasions in accordance with custom and tradition from persons who are not ascendants, descendants or spouse, only for the portion not exceeding B10 million per tax year; and
  • Income from gift received for use for religious, educational or public purposes according to the rules and conditions under a ministerial regulation yet to be issued.

Gifts with net value exceeding the above exemption threshold is tax at a flat tax rate of 5 percent.

Additional capital gains tax (CGT) issues and exceptions

Are there additional capital gains tax (CGT) issues in Thailand? If so, please discuss?

Not applicable.

Are there capital gains tax exceptions in Thailand? If so, please discuss?

Not applicable.

Pre-CGT assets

Not applicable.

Deemed disposal and acquisition

Not applicable.

General deductions from income

What are the general deductions from income allowed in Thailand?  

A number of deductions are available to a resident depending upon the type of income and family status.

Deductible expenses

A taxpayer may deduct from their income either a standard amount or actual expenditures depending on the type of income involved. Standard deductible expense rates are as follows.


Income Type Standard deductible expense rates for 2019

Employment income - s.40(1) 

Income from hiring of services - s.40(2)

50 percent of assessable income capped at THB100,000
Goodwill, copyright and other rights income – s.40(3) Actual expense or 50% of income capped at THB100,000
Interest, dividend and cryptocurrency – s.40(4)  No expense allowed
Rental income – s. 40(5) 10-30% of income or actual expense
Income from liberal professional – s. 40(6)  30-60% of income or actual expense
Construction income – s.40(7) 60% of income or actual expense
Income from business, commerce, agriculture, transportation or not specified 60% of income or actual expense


The deduction of expenses in relation to rental income and income from liberal, professional, from contract work, from business, commerce or other income not specified may be made on an actual basis only if satisfactory evidence of the expenditures can be provided to the tax authority.


A resident may deduct personal and specific allowances:

  2019 (Baht)
Personal Allowances  
Taxpayer 60,000
Spouse 60,000
Dependent (maximum 3 children), each

30,000 per child,no limit except to 3 with adopted children

* Taxpayer is able to claim for additional 30,000 each child tax deductible allowance for 2nd child onwards who born in/after 2018.

Thai Parental care, each 30,000
Care of disabled or incapacitated family members, each 60,000
Care of a disabled or an incapacitated person other than a family member 60,000
Specific allowances  
Taxpayer’s contributions to the social security fund maximum of 9,000 per annum
Life insurance premiums with the insurance policy for the duration of 10 years or more paid by the taxpayer to a Thai insurer

maximum of 10,000 per annum for taxpayer’s spouse

Health insurance premium to a life or non-life insurance business in Thailand by the taxpayer 15,000 per annum combined with life insurance maximum of 100,000 
Health insurance premium to a life or non-life insurance business in Thailand for taxpayer’s parents and/or parents-in-law Up to 15,000
Mortgage interest incurred for the purpose of purchase or construction of a residential building in Thailand maximum of 100,000 per annum
Qualified pension life insurance premium for taxpayer paid to a Thai insurer (This allowance together with contribution to registered provident fund, civil servant pension fund, welfare fund and investment in RMF may not exceed THB500,000) Premium paid with a limit of 15% of assessable income subject to tax with a maximum allowance of THB200,000

Contributions to Provident Fund (PF)

(Contributions to PF together with premium paid to qualified pension life insurance and contributions to RMF, civil servant pension fund and welfare fund may not exceed THB500,000.)

Contributions with a limit of 15% of total wages but not exceeding allowance of THB500,000.

Contributions to Retirement Mutual Fund (RMF)

(Contributions to RMF together with premium paid to qualified pension life insurance and contributions to PF, civil servant pension fund and welfare fund may not exceed THB500,000)

Contributions with a limit of 15% of total assessable income subject to tax with a maximum allowance of THB500,000
Contribution to long-term equity fund in Thailand that is held for at least 7 calendar years Contributions with a limit of 15% of total assessable income subject to tax with a maximum allowance of THB500,000
Donations to specified charities  Actual donated amount up to 10% of taxable income after all other allowances are deducted
Donations for rendering educational support to a state education institute, a government organization education institute, a private school established under the law of governing private schools or a private university established under the law governing private universities  200% of actual donation not exceeding 10% of taxable income after all other allowances are deducted

A non-resident taxpayer may be entitled to claim some personal and specific allowances.

Tax reimbursement methods

What are the tax reimbursement methods generally used by employers in Thailand?

Tax paid by employer which requires tax to be computed on gross-up method (tax on tax).

Calculation of estimates/ prepayments/ withholding

How are estimates/prepayments/withholding of tax handled in Thailand? For example, Pay-As-You-Earn (PAYE), Pay-As-You-Go (PAYG), and so on.

Pay-as-you-go (PAYG) withholding

For employment income, the withholding tax will be imposed whereby the employer shall withhold tax every time it makes payment to employees and/or taxable benefits for employees.

PAYG Installments

Individual who earns certain non-employment income e.g. rental income or legal, engineer, architecture or accounting profession is required to pay tax on income earned for the first half-year.

When are estimates/prepayments/withholding of tax due in Thailand? For example: monthly, annually, both, and so on. 

Withholding tax on employment income is due on monthly basis by the 7th day of the month following the month in which employment income is paid.

Tax on certain non-employment income received during the first half-year (January to June) is due at the end of September of the said tax year.

Relief for foreign taxes

Is there any Relief for Foreign Taxes in Thailand? For example, a foreign tax credit (FTC) system, double taxation treaties, and so on?

Foreign tax cannot be taken as credit against Thai tax unless permitted under a double tax treaty.

General tax credits

What are the general tax credits that may be claimed in Thailand? Please list below.

There is a host of credits that may be claimed as relieveson taxpayers’ annual tax liability, such as the following:

  • tax withheld at source.
  • dividend tax credit for the corporate income tax paid by a Thai incorporated company paying the dividend in respect of that portion of its profit out of which the dividend is paid. The dividend tax credit must be included as assessable income (in addition to the dividend income) for the purposes of the tax computation. 

Sample tax calculation

This calculation3 assumes a married taxpayer resident in Thailand with two children whose 3-year assignment begins 1 January 2018 and ends 31 December 2020. The taxpayer’s base salary is 100,000 US dollars (USD) and the calculation covers 3 years.








Salary 100,000 100,000 100,000
Bonus 20,000 20,000 20,000
Cost-of-living allowance
Housing allowance 12,000 12,000 12,000
Company car 6,000 6,000 6,000
Moving expense reimbursement/ repatriation
0 20,000
Home leave 0 5,000 0
Education allowance 3,000 3,000 3,000
Interest income from non-local sources 6,000 6,000 6,000

Exchange rate used for calculation: USD1.00 = THB31.00.

Other assumptions

  • All earned income is attributable to local sources. 
  • Bonuses are paid at the end of each tax year.
  • Interest income is not remitted to Thailand.
  • The company car is used for business and private purposes and the cost for private used is USD6,000. 
  • The employee is deemed resident throughout the assignment. 
  • Tax treaties and totalization agreements are ignored for the purpose of this calculation.
  • Moving expenses reimbursement is actual expenses incurred with supporting evidence.
  • Spouse does not work and children study in Thailand.

Calculation of taxable income








Days in Thailand during year 365 365 366
Earned income subject to income tax  
Salary 3,100,000 3,100,000 3,100,000
Bonus 620,000 620,000 620,000
Cost-of-living allowance 310,000 310,000 310,000
Net housing allowance 372,000 372,000 372,000
Company car 186,000 186,000 186,000
Moving expense reimbursement 0 0 0
Home leave 0 155,000 0
Education allowance 93,000 93,000 93,000
Total earned income 4,681,000 4,836,000 4,681,000
Other income 0 0 0
Total income 4,681,000 4,836,000 4,681,000
Deductions 289,000 289,000 289,000
Total taxable income 4,392,000 4,547,000 4,392,000
Tax payable 1,082,600 1,129,100 1,082,600
Effective tax 23.13% 23.35% 23.13%


Calculation of tax liability








Taxable income as above 4,392,800 4,547,000 4,392,000
Thai tax thereon 1,082,600 1,129,100 1,082,600
Foreign tax credits 0 0 0
Total Thai tax 1,082,600 1,129,100 1,082,600


1Certain tax authorities adopt an "economic employer" approach to interpreting Article 15 of the OECD model treaty which deals with the Dependent Services Article. In summary, this means that if an employee is assigned to work for an entity in the host country/territory for a period of less than 183 days in the fiscal year (or a calendar year of a 12-month period), the employee remains employed by the home country/territory employer but the employee's salary and costs are recharged to the host entity, then the host country/territory tax authority will treat the host entity as being the "economic employer" and therefore the employer for the purposes of interpreting Article 15. In this case, Article 15 relief would be denied and the employee would be subject to tax in the host country/territory.

2For example, an employee can be physically present in the country/territory for up to 60 days before the tax authorities will apply the ‘economic employer’ approach.

3Sample calculation generated by KPMG Phoomchai Tax Ltd., a Thai limited company and a member firm of KPMG International Cooperative, based on the Thai Revenue Code, Revenue Department of Thailand.

© 2021 KPMG Phoomchai Tax Ltd., a Thailand limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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