Thailand is not a tax-free country; it operates a comprehensive taxation system encompassing both direct and indirect taxes. Direct taxes include personal income tax, which is progressive and ranges from 0% to 35% depending on the income level, and corporate income tax, generally set at 20% for most companies. Indirect taxes involve Value-Added Tax (VAT), currently at 7%, and specific business taxes on certain transactions. Non-residents are subject to tax on income derived from Thai sources, while residents are taxed on their worldwide income, subject to certain conditions and exemptions. Thailand also implements double taxation agreements with numerous countries to prevent double taxation of income earned in one country by a resident of another.
Learn more about the Thailand Revenue Department’s announcements on foreign sourced income here
