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Thailand – New Decree Announces Extension of Progressive Tax System

Thailand – New Decree Announces Extension of Prog...

On November 10, Royal Decree No. 576 instituted the progressive personal income tax in Thailand for the 2015 tax year. Had this decree not been approved, the progressive personal income tax rates would have reverted to the pre-2013 tax scale and created potentially heavier taxation for individuals.


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Flash Alert 2014-110

Thailand’s current progressive tax system, which was due to sunset at the end of 2014, has been extended.  On November 10, 2014, the Thai government approved Royal Decree No. 576 announcing the progressive personal income tax for the tax year 2015.1

With the issuance of Royal Decree No. 576, the temporary progressive personal income tax rate from 0 percent to 35 percent with seven income tax brackets approved in December 2013 for tax years 2013 and 2014, will continue to extend to 2015.


While the extension only maintains the current progressive scale for one more year, this is welcome news nonetheless.  Had the Royal Decree not been approved, the progressive personal income tax rates would have reverted to the pre-2013 tax scale, with old rates ranging from 0 percent to 37 percent.  This would have meant potentially heavier taxation for individuals subject to tax in Thailand and potentially higher costs for international assignment programs.  

2015 Income Tax Brackets, Rates under Royal Decree No. 576

Net taxable income (THB)

Tax rate (%)

0 - 300,000*


300,001 - 500,000


500,001 - 750,000


750,001 - 1,000,000


1,000,001 - 2,000,000


2,000,001 - 4,000,000


4,000,001 and Over


* The tax exemption for annual wage income below 150,000 baht (THB) remains in place as it is covered in Royal Decree No. 470 dated March 28, 2008 (still in force); this effectively adds a 0-percent rate on wages below THB 150,000.

Royal Decree No. 576 will come into force on and from the day following the date of its publication in the Government Gazette.   


With the ASEAN Economic Community coming into force in 2015, there will possibly be greater fiscal competition between the member countries and some observers believe the Thai government may need to consider further reducing personal income tax rates to enhance the country’s competitive advantage.


1  See Royal Decree No. 576 (PDF 51 KB) (in Thai).

THB 1 = EUR 0.0244 

THB 1 = USD 0.0305 

THB 1 = AUD 0.0357 

THB 1 = GBP 0.019 

THB 1 = JPY 3.6  


For further information or assistance, please contact your local GMS or People Services professional, or any of the following professionals with the KPMG International member firm in Thailand:


Lynn Tastan

Tel. +66 2677 2477


Saangluk Sarobol

Tel. +66 2677 2542


Panisa Srihera

Tel. +66 2677 2544

The information contained in this newsletter was submitted by the KPMG International member firm in Thailand.

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