Expat Tax: Frequently Asked Questions

Thailand joined the Common Reporting Standards (CRS) and Automatic Exchange of Information (AEOI) agreements. As of September 2023, the Thai Revenue Department can receive information from other CRS-affiliated revenue departments. If audited, you must prove that any money you transferred into Thailand is not taxable income.

If you are required to file a tax return, you must obtain a Tax Identification Number (TIN). Non-compliance can result in severe penalties, including a fixed fine, a penalty of up to 200% of the unpaid tax, and an additional 1.5% charge per month on the amount owed.

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).

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

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, 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. 

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.

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.

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.

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, 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.

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?‘

If it can be proven that the work was done overseas, and the salary is not from work conducted in Thailand, then you can justify that it is not liable for tax in Thailand. However, if the work was conducted whilst living and working in Thailand, then it is potentially taxable in Thailand.

Here is the US-Thai Double Taxation agreement. It sets out how certain assets are taxed and the articles in the DTA take precedent over local domestic Thai tax rules. We will host a webinar specifically on the US DTA next month, which I will invite you to join, as many people have had similar questions.

Social Security is mentioned in the DTA and is not taxable in Thailand. Here is the extract from the DTA from article 20 part 2 which mentions that social security shall be taxable only in the USA.

Article 20 (2) Notwithstanding the provisions of paragraph 1, social security benefits and other similar public pensions paid by a Contracting State to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first- mentioned State.

For 401k’s there is no such article in the DTA. This means that if you remit your 401k into Thailand, then it is an assessable income in Thailand if you are a Thai tax resident.

Learn more about Double Tax Agreements for expats in Thailand by watching our video here. 

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

If it can be proven that the work was done overseas, and the salary is not from work conducted in Thailand, then you can justify that it is not liable for tax in Thailand. However, if the work was conducted whilst living and working in Thailand, then it is potentially taxable in Thailand.

Yes this is correct, Canadian pensions are not taxable in Thailand and do not need to be filed on a tax return. You still keep your 120k limit

The income tax structure in Thailand is progressive, meaning that the rate of taxation increases as income increases. Individuals earning income in Thailand, including foreigners residing in Thailand for more than 180 days a year, are subject to this tax. The rates start at 0% for annual incomes up to 150,000 baht, and increase through several brackets to a maximum of 35% for incomes over 5 million baht. Other than the standard deductions and allowances for personal, spousal, and child care, there are also deductions for expenses such as health insurance, education, and donations to charity. This system aims to balance the tax burden across different income levels while providing incentives for social and personal investments.

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, expatriates are subject to taxation based on their residency status and the source of their income. Expatriates who reside in Thailand for a period of 180 days or more within a calendar year are considered tax residents and are obligated to pay tax on overseas income they bring into Thailand. Conversely, expatriates who stay in Thailand for 179 days or less within a calendar year are only required to pay tax on the income that is sourced within Thailand. The applicable income tax rates are progressive, ranging from 0% to 35%, depending on the amount of taxable income. It is imperative for expatriates to ensure compliance with Thai tax laws to avoid legal complications and penalties.

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

Wihtholding tax is not deducted by receiving banks for personal funds remitted to Thailand. Any tax which is due on foreign sourced income remitted to Thailand for Thai tax resident needs to be declared on the tax return.

Based on your information here are the answers:nIf less than 220k of foreign sourced income you don’t need to file.nIf the money is from savings from before 1st January 24 then this is not a foreign sourced income but savings, so doesn’t need to be filed. Foreign sourced income are assets like pension income, capital gains, property rental income etc.. Make sure you keep good records that prove that this money is not a taxable income source.

This depends on what you remit into Thailand and the frequency. If it is one source of income then this will be essential tax filing. If it is multiple sources, then this is THB12,000.

Please feel free to book a call using the link at the top of the page to book a call and discuss your requirements further.

If you have no income, then you do not need to file a tax return, even if you are in Thailand more than 180 days. If you spend less than 180 days in Thailand, then even if you do have foreign sourced income paid into Thailand, you do not need to file a tax return.

It depends on where the money is from. If it is income, for example, from investments, a pension or property rental, it is potentially taxable. If it is from savings from pre2024, it is not classified as a taxable asset and is not taxable. Depending on they jurisdiction for where your assets are based, there may be relief under a Double Tax Agreement using tax credits.

This is classed as foreign sourced income and the capital gains needs to be filed in Thailand. Thailand tax residents must pay taxes on their foreign-sourced income remitted to Thailand. This means if you’re considered a tax resident in Thailand—defined as someone who spends 180 days or more in the country in a calendar year—you must include your income remitted from abroad in your annual tax return and pay Thai taxes on it. However, to avoid double taxation (paying taxes on the same income in both Thailand and the country where the income was earned), Thailand has double tax treaties with 61 countries that allow for tax credits or exemptions. It’s important to consult a tax professional to understand how these treaties may apply to your situation and to ensure compliance with Thai tax laws while maximising available benefits.nn

In Thailand, if you reside in the country for 180 days or more in a year, you are considered a tax resident. This means you have to pay tax on income you earn both inside and outside Thailand. However, income earned outside Thailand is taxed only if remitted to Thailand. If you do not reside in Thailand for 180 days or more, you only pay tax on the income you earn in Thailand.n

Generally, no. If you are not a Thai tax resident (fewer than 180 days), you are not subject to Thai tax obligations unless you have Thai-sourced income, such as Thai rental property income or a local salary.

Being a Thai tax resident is dependant on the number of days you reside in Thailand, rather than your Visa status. If you remit foreign sourced income to Thailand and it’s over the minimum requirements, you may have to file and you may have a tax liability.nn

A Thai tax resident is someone who spends 180 days or more in Thailand in the calendar year.

Learn more about Thailand tax residency by listening to a short podcast here. 

If you do not spend 180 days or more in Thailand per year, you are considered a non-Thai tax resident. Foreign-sourced income that is remitted into Thailand is not a taxable asset. However, if you have an income in Thailand, you are liable for tax.

Learn more about Thailand tax residency by listening to a short podcast here. 

Witholding tax is not deducted by the receiving bank. Taxpayers must use personal income tax returns to declare any tax due.