Expat Tax: Frequently Asked Questions

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

No. You cannot use any other country’s personal allowance in Thailand. Thai tax residents have their own personal allowance, so it is important that you use this.

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

This may potentially be classed as a gift. If this was a gift and it will not be returned, you need written evidence of this. It is advisable that you get a gift document drawn up to prove that it is a gift that does not need to be returned.

Learn more about Gifts and Taxation in Thailand

In Thailand, the personal tax allowance system incorporates a range of deductions and allowances aimed at reducing taxable income for individuals, including both residents and foreign residents. Standard allowances include personal and spouse allowances of 60,000 Baht each, provided the spouse does not file their own return. Additionally, there is a 30,000 Baht allowance for each child, with an extra 30,000 Baht for the second child born in or after 2018. Deductions for the care of dependent parents or a disabled or incapacitated person offer 30,000 Baht and 60,000 Baht respectively. For employment income, a standard deduction of 50% up to 100,000 Baht is permitted. Other specific deductions cover life and health insurance premiums, contributions to retirement and savings funds, mortgage interest, and charitable contributions, among others. Notably, the system also allows for tax deductions related to health insurance premiums, including premiums for the taxpayer and their parents, with varying limits. The detailed structuring of these allowances and deductions is designed to offer tax relief based on personal circumstances and financial commitments.

No. Only Thai registered medical insurance plans, can be used as a tax deductible.

You get the child allowances already in your tax return. If you remit foreign sourced income to the school for school fees or any other purpose to anyone in Thailand, it is assessable income and potentially taxable, even if you send to a third party.

The 190k is on top of the 60k personal allowance.

The spouse allowance is if they are not working and you want to file jointly.

So if you and your wife are over 65

190k
60k
60k

THB310k of assessable income can be remitted before the tax brackets.

Plus any other deductions or allowances (like Thai medical insurance)

Then the first 150k is tax exempt. So you can in effect bring in 460k THB of foreign sourced income or assessable income and not pay tax.

You do have to file if the income is greater than 220k jointly.

Gifts are not taxed as personal income, but under gift tax rules. It is not a solution to ‘resolve’ tax implications if you are going to benefit from this in the future.

You should seek advice before using this as a tax planning strategy, as this doesn’t seem like a gift as you mentioned you will receive the money back. This is called a ‘gift with reservation of benefit’ and is not a gift.

You can gift assets, if you don’t benefit from the gift at anytime in the future and it is a legitimate gift. You cannot be seen to benefit from the gift and its best practice to get a gift document drafted and signed by a laywer that this is a gift and you will not benefit from this.

We recommend that you gift the assets overseas and draw up a gift document with a lawyer in the juridiction you gift the asset. Then get this notarised, and translated into Thai and kept on file.

Please seek advice if you are going to look at gifting.

You might find out article on gift tax useful additional information. 

This is dependent on where and how the gold is held. It is potentially taxable if it’s overseas in an investment account and you have a gold ETF. If it makes a profit and you sell that asset and remit into Thailand, you will be taxed on capital gains. You cannot use losses to offset future gains or for other assets or asset classes. There maybe tax credits available if tax has been paid in the other jurisdiction, depending on the DTA between that country and Thailand.

Learn more about tax assessable foreign-sources income here

If one spouse has no income, you may file jointly and claim a 60,000 THB allowance for the non-earning spouse. If both have incomes, you must file separately.