Expat Tax: Frequently Asked Questions

No, you must have a Thai-issued disability certificate to claim disability-related tax allowances.

No, foreigners must register separately for a TIN, even if they possess a pink card.

You must keep records for up to five years. Ensure all documentation is in Thai or English for compliance purposes.

The department accepts documents in Thai or English. Certification depends on the nature of the claim, but clear records, including bank statements, are essential for audits (up to five years).

You need to keep clear documentation, such as bank statements, to show the funds originated from non-taxable sources like savings, exempt pensions, or gifts.

In Thailand, the Revenue Department within the Ministry of Finance is responsible for collecting taxes. This includes overseeing the collection of taxes such as personal and corporate income tax, value-added tax (VAT), and other specific taxes and duties. The department ensures that tax laws are followed and helps taxpayers understand and meet their tax obligations.

Thailand’s tax system operates primarily on a territorial basis, taxing individuals and entities on income derived from within the country, whilst foreign-sourced income is taxed only if remitted into Thailand in the same year it is earned. The system encompasses a range of taxes including personal income tax, which is progressive and ranges from 0% to 35% based on income levels; corporate income tax at a standard rate of 20% for companies; value-added tax (VAT) at a standard rate of 7% applied to most goods and services; specific business taxes on certain industries like banking, insurance, and real estate; and customs duties on imported goods. Other taxes include property tax, stamp duties, and withholding taxes on certain types of payments to non-residents. Tax incentives and exemptions are available for investments in specific sectors or regions, as guided by the Board of Investment. Compliance with Thailand’s tax laws requires careful navigation of its rules and regulations, including the filing of annual tax returns.

Learn more about the Thailand Revenue Department’s announcements on foreign sourced income here

The conservative approach to gift assets is to give the assets overseas to the recipient, draw up a gift document demonstrating that the gift will not be returned, and get this notarised by a lawyer in the country the gift was given in. Once this is done, translate the document into Thai and get this held on file. Then, have the person that the gift is given to remit the funds into Thailand. It is recommended that if you are to gift assets, you seek advice as it is more complicated than simply sending money to a third party.

If you do not have any assessable income (Thai income or overseas income that is remitted to Thailand) then you don’t need a Tax ID number. Your spouse can use your passport number on her tax return.

You are not required to have a Thai tax ID number or file if you have no income (your wife can file as a joint married with a spouse with no income)

Yes, foreigners who work in Thailand are required to file a tax return, and their tax obligations are influenced by their residency status. An individual is considered a tax resident if they stay in Thailand for a period or periods totalling 180 days or more in a calendar year. Tax residents are subject to Thai income tax on their worldwide income remitted to Thailand, whereas non-residents are taxed only on their income derived from sources within Thailand. The tax year in Thailand runs from January 1st to December 31st, with the filing deadline being March 31st of the following year. It is essential for foreign workers to understand their residency status, as it significantly affects their tax liabilities. To ensure compliance and optimise their tax situation, foreign workers are advised to consult with a tax professional, especially to navigate the complexities of tax treaties and exemptions that might apply to them.

To file and obtain your tax return in Thailand, you typically need to go through the Revenue Department of Thailand’s official process. This involves registering for a taxpayer identification number if you don’t already have one, gathering all necessary documentation such as income statements, tax deductions, and allowances. You can file your tax return either online via the Revenue Department’s e-filing system or by visiting a physical office to submit your documents in person. The tax year in Thailand runs from January 1st to December 31st, with the deadline for filing usually set for the end of March the following year. After submitting your tax return, you can track the status online and, if applicable, any tax refund due to you will be processed by the Revenue Department. For specific guidance or assistance, it may be beneficial to consult with a tax professional or advisor familiar with Thailand’s tax laws and procedures.

Learn more about applying for a Tax Identification Number (TIN) in Thailand here and listen to a short podcast about the tax filing requirements for expats in Thailand here

In Thailand, you might get a tax refund if you’ve paid more tax during the year than you actually owe. This is figured out when you calculate your yearly income and subtract any deductions or credits you’re allowed. To get a refund, you need to fill out an annual tax return with details of your income, deductions, and what you’ve already paid in taxes. The deductions and credits you can get, and how you file your tax return, depend on your own situation, like the income sources you receive and the allowances and deductions available to you. Keep good records of how much you earn, what taxes you pay, and keep your receipts for things you can deduct so you can back up your refund claim.

It is not a law change, but a departmental order, which overules the previous tax ruling from 1987.

Here is a page of all the official announcements and information. The Thai Revenue Department have provided a lot of useful information and guidance on this change.

In Thailand, declaring taxes involves preparing and submitting an income tax return to the Thai Revenue Department. Individuals must accurately report their annual income and calculate their tax liability based on the prevailing tax rates and laws. The tax year in Thailand runs from January 1 to December 31, with the filing deadline typically set for the end of March. Taxpayers can file their returns electronically through the Revenue Department’s website or manually by submitting the necessary forms at a Revenue Department office. It’s essential to include all sources of income, deductions, and allowances to ensure an accurate tax calculation. Late submissions may result in penalties, so it’s advisable to prepare and file tax returns promptly. For those unfamiliar with Thailand’s tax laws or who have complex tax situations, consulting a tax professional is recommended to ensure compliance and optimise tax liabilities.

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

Yes, to file a tax return, you will need a TIN number. You can get this from your local revenue office. If people would like help with this we have a paid service to obtain on their behalf.

You can find out more about applying for a Tax Identification Number (TIN) in Thailand here. 

To obtain a tax ID in Thailand, an individual or company must first register with the Thai Revenue Department, a process which can be initiated online through the Revenue Department’s website or in person at a local tax office. If people would like help with this we have a paid service to obtain on their behalf.

Learn more about applying for a Tax Identification Number (TIN) in Thailand here. 

There are two specific time periods to file for tax. Most people will need to file by the end of March for the previous tax year. Some people, depending on their asset class, may have to file the mid-year tax file. For example, those who have rental property income.

Listen to this short podcast, Who Needs to File a Tax Return in Thailand and When? for more information.

It is best to keep as many records as possible. It is very important to keep a record of every transaction that is sent across and where the funds are from initially. (what is the source of the funds) It is advisable to set up accounts for different types of assets, as it will be easier for you to keep track and file properly once remitted into Thailand if non-taxable and taxable assets are kept separately.

Read our article on the best practices for keeping tax records for more information.

You must get a tax certificate or document to show that taxes are being paid in another jurisdiction. This can potentially be used to file as a credit against any tax owed in Thailand. You will need to file a Thai tax return, including the information of all funds remitted to Thailand.

It is the responsibility of the individual tax payer to prove that their assets are not taxable.

Yes you will need a Thai Tax ID Number (TIN). You can get this from your local revenue department. If you do need help with this, we do have a service to aquire the TINs.

Learn more about applying for a Tax Identification Number (TIN) in Thailand here. 

Thai tax filing is a legal requirement, not a voluntary act, if you meet the specified criteria. While other online posts may suggest otherwise, the law is clear on this matter.

Here’s a summary of the relevant rules:

If you are a Thai tax resident with income from a salary, the Thai Personal Income Tax Revenue Code Section 40(1) applies. The minimum income thresholds that require you to file a tax return are:

• THB 120,000 if you are single
• THB 220,000 if you are married and filing jointly

For foreign-sourced income or other types of income under Section 40(2)-(8) of the Revenue Code, the filing thresholds are:

• THB 60,000 if you are single
• THB 120,000 if you are married and filing jointly

If you remit foreign-sourced income that exceeds these limits, you are required to file a tax return, even if no tax is due.

For further details, you can refer to the specific Thai law here: https://www.rd.go.th/562.html

Please note that failure to file a required tax return or providing false information can result in significant penalties, including fines or imprisonment.

You have the option to file online with the Revenue Department or through a tax filing service like what Expat Tax Thailand provides.

It is very important that commingled funds and accounts are separated. Reporting and filing for tax becomes much simpler as it is easy to identify what is taxable and what is not. Remember it is up to the tax payer to prove there is no tax due on assets remitted.

In Thailand, you need to file taxes if you live in the Kingdom for 180 days or more, or if the money was for work conducted in Thailand and your assessable income is over 120,000 THB as an individual or 220,000 THB as a joint filing married couple. The tax year is from January to December, and you usually have until the end of March the next year to file your taxes.

Yes. If you have the account balances as of December 31st, 2023, then this is not taxable income in Thailand as per the November announcement. (Order No. P.162/2023)

If you don’t pay taxes owed in Thailand, you may face serious consequences, including fines, penalties, and interest on unpaid taxes. The Thai Revenue Department has the authority to conduct audits and investigations into tax evasion. Failure to comply with tax obligations can lead to legal action, including criminal charges, which might result in imprisonment. Additionally, non-payment can damage your credit rating and hinder your ability to conduct business in Thailand, as it reflects negatively on your financial responsibility and legal compliance.

In Thailand, intentionally avoiding tax payments or falsely claiming refunds is considered a significant violation. Those found guilty of tax evasion can face criminal penalties, including a jail term of three months to seven years and fines from 2,000 to 200,000 Baht. Financial penalties can be 200% of the tax evaded and interest of 1.5% a month. Our advice is to stay fully compliant and within the rules.

In Thailand, the personal income tax allowance system is designed to provide tax relief to individuals based on their income levels and personal circumstances. For the tax year 2023, every taxpayer is entitled to a basic personal allowance of 60,000 THB, which is deducted from their taxable income. Additionally, taxpayers can claim various other allowances and deductions, such as for dependents, mortgage interest, and contributions to retirement savings plans, among others. These allowances and deductions are intended to reduce the taxpayer’s taxable income, thereby lowering their overall tax liability. The specific allowances and deductions available may vary based on changes in tax legislation, so it is advisable for individuals to consult the latest tax guidelines or a tax professional to understand their entitlements fully.

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.

In Thailand, you can legally lower your taxes in a few ways. First off, you can invest into Thai tax saving structures like the Provident Fund, Government Pension Fund, or Retirement Mutual Fund, up to the allowed limits. Investing in Long-Term Equity Funds and Retirement Mutual Funds might also cut down your taxes, but there are rules about how long you must keep your money in them and how much you can put in. You can also reduce your taxes by claiming allowances for your family, like your children, parents, or spouse, and by deducting things like home loan interest and gifts to approved charities—just keep within the set boundaries. You can also take out Thai registered life or health insurance for you or your family members can give you extra tax deductions. Always make sure your tax strategies follow the Thai Revenue Department’s rules to ensure you remain fully compliant.

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

You will need to keep the proof of where the source of the money is from. Bank statements is ok, but also you will need to show where the funds are from if they were from pre-2024 or from new income paid after 1st January 2024.

If people have over 120,000 THB of foreign-sourced income that is remitted to Thailand, then they must file a Thai tax return regardless of whether they have a tax liability or not. For married couples who wish to file jointly, they must file if they have over 220,000 THB.

You can find out more on this short podcast, ‘Who Needs to File a Tax Return in Thailand and When?‘

No you do not have to file a tax return for non-assessable income.

The conservative approach to gift assets is to give the assets overseas to the recipient, draw up a gift document demonstrating that the gift will not be returned, and get this notarised by a lawyer in the country the gift was given in. Once this is done, translate the document into Thai and get this held on file. Then, have the person that the gift is given to remit the funds into Thailand. It is recommended that if you are to gift assets, you seek advice as it is more complicated than simply sending money to a third party.