Tax basics, in outline

Thai tax law is administered by the Revenue Department, and this page describes the general structure of the system — not specific rates or thresholds, which change periodically and should always be confirmed directly with a licensed tax advisor or accountant before you rely on them.

Personal income tax and residency

• Thailand generally taxes individuals considered tax resident — broadly, based on time spent in the country during a tax year — on income according to rules that have been the subject of significant clarification and change in recent years, particularly around foreign-sourced income remitted into Thailand.
• Non-residents are generally taxed only on Thai-sourced income.
• Personal income tax is generally progressive, filed annually, with employers withholding tax from salary throughout the year on behalf of employees.
• Because the rules around foreign-sourced income have changed materially and the practical treatment continues to evolve, do not rely on outdated general commentary — including older versions of pages like this one — and get current advice tailored to your situation, especially if you have significant income or assets outside Thailand.

Corporate income tax

Thai companies pay corporate income tax on net profit, with the standard rate reduced for smaller companies meeting capital and revenue thresholds, and further incentives available for BOI-promoted businesses — see business & foreign ownership. Annual audited financial statements support the tax filing and are a separate requirement from the tax return itself.

VAT and specific business tax

Value Added Tax applies to most goods and services in Thailand, with businesses above a registration threshold required to register, charge VAT on sales, and remit it, net of VAT paid on their own purchases. Certain activities — notably some property and financial transactions — fall instead under Specific Business Tax rather than VAT. Getting the wrong tax regime applied to a transaction is a common and costly mistake in property deals in particular.

Withholding tax

Thailand uses withholding tax extensively: employers withhold from salaries, businesses withhold on many payments to contractors and service providers, and specific rates apply to dividends, interest and royalties, including different treatment for payments to non-residents, sometimes reduced under a double-tax treaty between Thailand and the recipient’s home country. Whether a treaty reduces withholding on a specific payment is a question worth confirming with an advisor rather than assuming.

Property and inheritance-related taxes

Property transfers can trigger several possible taxes and fees at the Land Office — transfer fees, stamp duty or Specific Business Tax, and withholding tax on the seller’s side — depending on how long the property was held and other factors; see property & land. Thailand also has an inheritance tax that applies above a threshold to larger estates; see wills & inheritance.

Filing and getting it wrong

Late or incorrect filings generally attract surcharges and penalties on top of the tax owed, and the Revenue Department has its own audit and assessment powers, with disputes ultimately reviewable by the specialised Tax Court — see how the Thai legal system works. For anything beyond a simple employment-income return, engaging a Thai-licensed accountant, and a lawyer where a dispute arises, is the sensible default rather than an optional extra.