Frequently Asked Questions on Personal Income Tax in Thailand

When it comes to paying personal income tax in Thailand income, there are so many questions that might suddenly pop-up in your mind. I have tried to answer a few questions that were frequently asked by most foreigners in Thailand. Hope you will find your answers too;

  1. Who is applicable to personal income tax?

It is applicable to individuals whose is earning from a property within the country or employment, but the income is either paid in Thailand or in the foreign land.

  1. Into how many heads taxpayers can be classified?

A taxpayer can be classified under two heads; namely, resident and non-resident. Individual who resides in Thailand for more than 180 days is known as a resident taxpayer. He/she will have to pay tax on the incomes earned both domestically and in the foreign land, whereas a non-resident is subjected to pay the tax based on the income earned in Thailand.

  1. What if a foreigner fails to pay his tax on or before the deadline?

In such a case the foreigner’s personal income tax in Thailand would be paid by the employer.

  1. When should one file his mid-year tax return?

He should file it before 31st September.

  1. Should you need your tax submission certificate during the renewal of the work permit?

Yes, when renewing work permit you must show the copy of the tax submission of the year before.

  1. Who are not subjected to personal income tax?

Individuals’ income falling below THB 150,000 need not pay personal income tax in Thailand.

  1. What are the assemble incomes on which the personal income tax are dependent?

They are as follows;

  • Employment or services provided
  • Professional fees
  • Royalties
  • Copyrights
  • Rental of properties/assets
  • Interests, dividends, capital gains on securities
  • Income from contractor-related activities
  1. Which allowances are allowed for calculating PIT?

It includes personal allowance, spouse allowance, child allowance, education, parents allowance, life insurance premium, approved provident fund contributions, home mortgage interest, long term equity fund and charitable contributions.