In Thailand, your personal income tax is calculated based on a progressive tax rate system, where the amount of tax you owe increases as your income rises. This system is divided into several tax bands, each with its own rate ranging from 0% to 35%. Your annual income is assessed and placed into these bands, with each portion of your income within a specific band being taxed at that band’s rate. Deductions and allowances, such as those for personal and dependent allowances, are subtracted from your gross income to determine your taxable income. This taxable income is then used to calculate the total amount of tax you owe by applying the corresponding tax rate for each portion of your income that falls within the different tax bands.
You can find out more about Thailand’s tax rates, allowances and deductions here or if you prefer to listen to a short podcast here
