Personal Income Tax in Thailand

Under the Thai Revenue code, a person who lives in Thailand for more than 180 days or receives their income in Thailand is required to declare their revenue. This declaration is the Personal Income Tax Return or commonly called PND90 or PND91 to the Revenue Department.

Foreigners who are working in Thailand are required to submit the PND90 or PND91 as it is also one of the required documents for visa and work permit renewal, even if the individual lives less than 180 days in Thailand per year.

Type of Income

There are 8 types of income that a person needs to declare in PND90 or PND91 as follows

    1. Wages or Salary
    2. Commission
    3. Loyalty fee
    4. Interest and Dividend
    5. Rental fee
    6. Professional Service fee – only the services described by laws.
    7. Construction fee
    8. Others apart from (1)-(7)

When submitting income only for the (1) Wages or Salary, the submission form is PND91 but when a person has income from (2)-(8), they need to use the PND90 form.

Tax Rates in Thailand

The system of the tax rate in Thailand is calculated by using the accumulated income rule. The more the individual will have accumulated income in a year, the higher the tax rate will be. Tax rates are as follows:

Net Income (THB) Tax Rate
1-150,000 Exempt from tax
150,001-300,000 5%
300,001-500,000 10%
500,001-750,000 15%
750,001-1,000,000 20%
1,000,001-2,000,000 25%
2,000,001-5,000,000 30%
5,000,001 and over 35%

Tax Deduction and Allowance

*Information in this section can change from time to time upon regulation enact each year.
When a person falls under the below criteria or purchases the item define below, the deduction amount can be used to reduce income tax.

Deduction items Deduction amount
Personal Expenses 50% of total income but not more than 100,000 thb (when income come from (1) wage or salary)
Personal Allowance 60,000 thb
Spouse allowance (when spouse has no income) 60,000 thb per spouse (maximum one)
Child allowance (when has income below 30,000 thb and age below 20 or below 25 if study in university) 30,000 thb per child (maximum three)
Parent age more than 60 (when has income below 30,000 thb) 30,000 thb per person
Life Insurance Premium (Policy term more than 10 years) 100,000 thb
Health Insurance Premium 25,000 thb when include life insurance premium not more than 100,000 thb
Provident Fund Maximum at 15% of Salary but total not more than 500,000 thb
Retirement Mutual Fund Maximum at 30% of Income but total not more than 500,000 thb
Super Saving Fund (SSF) Maximum at 30% of Income but total not more than 200,000 thb
Donation Maximum at 10% of Income

Tax Refund and Tax Payment

When you finished calculating your tax duty, you will find the amount of tax that you need to pay additionally. You have to pay this amount when you do the submission.
However, you can find that you might get your tax back called a tax refund, in this case, you will get it via cheque. But sometime before the revenue department approves your refund, you have to submit the deduction supporting documents to the revenue department, otherwise, that deduction cannot be used.

The income tax return can also be sent directly to a specific bank account (Krung Thai Bank) and then withdrawn in an ATM or transferred to your main bank account. The income tax return will be based on the total income and the total deduction. Our accounting team is able to take care of the income tax filing for foreigners or Thais and calculate how much they will return to the individual.

Submission

A person can submit the tax return form (PND90 or PND91) via the revenue office website or submit the hard copy at the revenue office near you.
If you are a foreigner, it is better to submit by hard copy and get a certified copy of PND90 and PND91 because you will need it in order to renew your visa and work permit.

Submitting the PND91 should be done before the end of March (31st) everywhere to avoid paying penalties.

Penalty

If taxpayers do not submit their PND91 or PND90 on time, they will get a fine of up to 2,000 THB and a monthly penalty of 1.5% of the tax rate.

Tax Payment Certificate

In case you wish to prove your payment of tax in Thailand to other countries’ tax bureau, you can contact the revenue office to provide a tax certificate in English.

For more information, please contact ATA Outsourcing directly as this article gives a general overview of personal income tax in Thailand. If you want to minimize your tax duty, you must contact us and our professional accountants will assist you