Everybody who lives in Thailand for more than 180 days per year is considered a Thai resident for tax purposes. The tax year begins on January the 1st and ends on 31st December.
There are quite a few taxes in Thailand, but most expatriates will have to consider the following four:
Personal income taxes
Resident individuals (who live in Thailand for more than 180 days a year) are taxed on their worldwide income. For employees, income taxes will be directly deducted from your salary. The amount taxed varies on your income and is from 10-37%.
To pay personal income taxes, you will have to apply for a Thai Tax ID card. This card is issued at the Revenue Department. You will need to provide your passport and a valid work permit.
Corporate income taxes
Companies incorporated in Thailand are taxable on income from all sources. The corporate tax rate is 30% of net profit in companies, partnerships and foreign corporations.
Value Added Tax (VAT)
The general rate of 7% is placed on the value of sold goods and services. Some categories such as agricultural products are not subject to VAT.
Specific business tax
Certain businesses that are excluded from VAT will instead be subject to Specific business tax (SBT).
- Banking, financial and similar business
- Life insurance
- Pawn brokerage
- Real estate
The SBT rate is usually 3%.
Other taxes include Excise Tax (placed on certain types of products, e.g. alcoholic beverages, tobacco, cinemas, fruit juice, etc.), Petroleum Income Tax or Stamp Duty. For more information about taxes check the website of the Thai Revenue Department.