Expatriate tax ebook - Thailand
Facts and figures
Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation
Pre arrival procedures
Expatriates who require a work visa must apply for this before taking up employment in Thailand. It is, therefore, important that the expatriate’s employment contract and benefit package are structured in tax efficiently before the contract is submitted to the Thai Immigration Bureau.
Employment visas
Under the requirements of the Immigration Bureau, expatriates must apply for a non-immigrant visa before taking up employment. The Immigration Bureau places emphasis on the education level and skills of the expatriate and the economic benefits to Thailand that will flow from the expatriate’s employment.
If the expatriate’s spouse and dependent family relocate to Thailand they will require dependent visas. It should be noted that spouses entering Thailand on dependent visas are not normally allowed to take up employment in Thailand and must apply for a separate employment visa if they wish to work in Thailand.
Tax year
The Thai tax year runs from 1 January to 31 December. The annual income tax return is required to be filed on or before the last day of March of the following year of assessment.
Tax returns and compliance
An expatriate who earns Thailand sourced income is required to file an annual personal income tax return by 31 March of the following year. Tax withheld is creditable against annual tax liabilities. Excess withholding tax is refundable.
| Net taxable income (Baht) | Rate (%) | Tax amount (Baht) | Accumulated tax (Baht) |
|---|---|---|---|
| 1- 150,000 | Exempt | 0 | |
| 150,001 – 500,000 | 10% | 35,000 | 35,000 |
| 500,001 – 1,000,000 | 20% | 100,000 | 135,000 |
| 1,000,001 – 4,000,000 | 30% | 900,000 | 1,035,000 |
| >4,000,000 | 37% |
| Gross compensation income | 5,000,000.00 | ||||||||
| Less: allowable deductions & allowances | |||||||||
| Expenses (40% of the income but not over 60,000) | 60,000.00 | ||||||||
| Self allowance | 30,000.00 | ||||||||
| Social security contribution at 5% (750 x 12) | 9,000.00 | 99,000.00 | |||||||
| Net taxable income | 4,901,000.00 | ||||||||
| Income Tax Calculation | |||||||||
| Income | % of Tax | Tax Due | |||||||
| 150,000.00 | x | Exempt | 0.00 | ||||||
| 350,000.00 | x | 10% | 35,000.00 | ||||||
| 500,000.00 | x | 20% | 100,000.00 | ||||||
| 3,000,000.00 | x | 30% | 900,000.00 | ||||||
| 901,000.00 | x | 37% | 333,370.00 | ||||||
| 4,901,000.00 | 1,368,370.00 | ||||||||
| Personal income tax | 1,368,370.00 | ||||||||
Information about Thailand:
Last updated 19 March 2008
This information has been provided by Grant Thornton Thailand, a member firm of Grant Thornton International Ltd and is for informational purposes only. Neither Grant Thornton Thailand nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.
Disclaimer
Contact us
For further information on expatriate tax services in Thailand, please contact Edward K. Strauss.