Tax Guide for Americans in Thailand

Obviously, being a US citizen, working in Thailand for almost over 8 years, you are liable to file US tax returns. For American Expatriates, Thailand individual income tax rate is progressive to 37%, whereas corporate tax is 30% of the net taxable profits. However, in order to pay taxes USA expats must obtain their tax ID number. For that, you must show your passport, ID card and work permit at a regional tax office. Don’t worry about the language as most of the staff at the tax office is English speaking.

Income liable for personal income tax is termed as assessable income, including incomes received in cash as well as in benefits like rent-free accommodation. However, the income is divided into eight categories, which are;

Income from/by

• business, agriculture, commerce, industry or transport
• letting out property or making hire-purchase contracts
• personal services to the employers
• dividends or interest on savings with the Thai banks
• liberal professions
• virtue of services rendered
• construction or taking contracts of work
• goodwill or copyright, franchise and other rights

As for the deductions allowed for calculating PIT you can look at the Revenue Department website. Usually, most of the people are liable to pay the tax that is able to claim a deduction from income through employment.

Every individual is entitled to a certain allowance of 30,000 baht. But then those who are aged 65 or over, their allowance can rise to 190,000 baht. Moreover, you are eligible to claim 30,000 baht if your spouse is financially dependent on you. Note, income derived from investment bonds can be excluded from the calculations. Similarly, dividends from shares are also excluded, provided the company is paying the dividend at the rate of 10%. Taxes for USA expats are typically paid at the Revenue Department. However, to file your tax return you must go to a regional tax office.