Tax in Thailand

Tax In Thailand

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in Thailand is complying with the country’s tax system. As well as paying tax in Thailand, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

If you’re working in Thailand under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Thailand for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Thailand, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Thailand through PAYE is left with the prospect of doing everything themselves.

Do you know much about Thai Tax Law? Does Thailand have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Thailand can range from 0 to 35 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in Thailand, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in Thailand are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Thai umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Thai taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Thai tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in Thailand, many of whom are experts in tax and immigration laws. If you have any questions about tax in Thailand, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Thai work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Thailand but without the overhead of directly dealing with the Thai tax authorities. Get in touch with us today for some reliable advice on tax in Thailand!

When Do You Need to Lodge Your Tax Return?:
Tax year ends on 31 December. A tax return may be lodged after the end of the tax year.
Tax Filing Deadline :
31 March for paper based return. 8 April for electronic return.
Can you file it online? :
Yes, https://rdserver.rd.go.th/publish/index.php
Currency:
Thailand Baht (THB)
Tax-free Threshold in:
150,000 THB
Grossed Income:
Up to 150,000
Tax Rate:
0%
Grossed Income:
150,001 to 300,000
Tax Rate:
5%
Grossed Income:
300,001 to 500,000
Tax Rate:
10%
Grossed Income:
500,001 to 750,000
Tax Rate:
15%
Grossed Income:
750,001 to 1,000,000
Tax Rate:
20%
Grossed Income:
1,000,001 to 2,000,000
Tax Rate:
25%
Grossed Income:
2,000,001 to 5,000,000
Tax Rate:
30%
Grossed Income:
Over 5,000,000
Tax Rate:
35%
How long does it take to set up:
5 days
How much does it cost:
Approximately 11,750 THB. May be higher or lower depending on the size of the initial capital.
Is it easy? :
Starting a Business Rank: 36. This ranking is relatively high meaning that starting a business is fairly simple in Thailand.
How to File Taxes in:

Anyone who has taxable income must register for a Tax ID number (before earning the income) at the Revenue Office by presenting their passport or ID card. The process for filing your tax return involves:

Step 1: Determine the relevant form to submit. The forms may be found here(link is external).

  • PND90: For taxpayer with income not only from employment.
  • PND91: For taxpayer who received income from employment only.

Step 2: Collect the required documents. This usually includes:

  • Your 13 digit taxpayer ID (and your spouse’s taxpayer ID if you are filing jointly).
  • Spouse’s passport number.
  • Withholding tax certificates.
  • Documents regarding government retirement allowance and payments from any government pension funds.
  • Documents relating to mortgage or any debts.
  • Documents relating to rental income or expenses.
  • Documents specifying any dividends earned.
  • Documents regarding the sale of property.
  • Documents regarding the sale of any units in a mutual fund or equity fund.

Step 3: Fill in all fields on the form. This may be done digitally.

Step 4: The forms may be filed as a hard-copy at any Revenue Department Area Office or submitted online(link is external).

  • If filing at a Revenue Department Office, any additional tax due must be paid at the time of filing by cash or cheque. Any tax refunds will be mailed as a cheque and this must be deposited within 6 months from the date of issue.
  • If filing online, any tax due must be paid electronically and any tax refunds will be mailed to you as a cheque.
Notes:

Personal income tax is levied on an individual’s gross income at the above progressive rates.

Does the 183 day rule apply in:

180 day rule applies. Individuals are regarded as a tax resident if they live in Thailand for 180 days or more in the calendar year.

When do you become a tax resident in:

A person is classified as a tax resident if they are present in Thailand for an aggregate of 180 days or more in any given tax year. Immigration status and nationality is not relevant.

Am I taxed on my global income in:

Yes, only if you are a Thai resident whose income from abroad has been remitted to Thailand in the year which it is received.