How Are Foreigners Taxed in Thailand? Business Owner Guide

TL;DR Understanding How are Foreigners Taxed in Thailand is an important questions because foreign business owners in Thailand must manage both company tax and personal tax. Stay 180+ days and you are a tax resident. Thai income is taxable, and foreign income can be taxed when brought into Thailand. Salaries use progressive rates up to 35 percent, dividends are usually 10 percent withholding. Annual filing is required even if tax was withheld. Late or incorrect filings can lead to fines, interest, audits, and visa or work permit issues. Proper structuring and records matter.

Introduction

Running a business in Thailand as a foreigner means being aware of and dealing with two separate tax responsibilities: your company’s corporate tax (CIT) and your own personal income tax (PIT). Many foreign business owners focus on company compliance while overlooking their personal tax position.

Understanding how foreigners are taxed in Thailand is important for avoiding penalties, immigration issues such as delays or revocation of visas and work permits, and unwanted attention from the Revenue Department.

Whether you are a director, entrepreneur, or self-employed professional, this guide explains how to manage your personal tax position in Thailand clearly and correctly.

Understanding the Requirements for Personal Tax for Foreign Business Owners

How foreigners are taxed in Thailand depends largely on both residency status and the source of income. For foreign business owners, their tax liabilities will often arise from several sources, each with its own treatment under Thai tax rules. 

Common examples of taxable income for foreign business owners includes salary or director’s fees paid by a Thai company, dividends received from that company, income earned from foreign clients, and funds remitted into Thailand from overseas. 

Understanding how each category of income is taxed is important, as they are assessed differently and can affect both compliance obligations and overall tax exposure.

Are You a Tax Resident? The 180-Day Threshold

Thai tax residency of an individual has a significant impact on their tax obligations. In Thailand, you are considered a tax resident if you spend 180 days or more in the country within a tax year (January 1 to December 31). 

Tax residents may be subject to tax on their worldwide income only on the portion that is remitted to Thailand (subject to exceptions such as the LTR visa or Double Tax Treaty Agreements DTAs), while non-residents are only taxed on income sourced from Thailand.

It is essential to accurately identify your residency status to ensure correct tax compliance. For example, if you are considered a Thai tax resident and have remitted foreign source income to Thailand, but did not correctly include this in your filings, you could be subject to a fine from the Revenue Department.

Read more about what the difference between Thai sourced and foreign sourced income:

Thai Tax Returns: A Complete Guide to Assessable Income for Tax Residents (2025)

How to Count Your Days 

Thailand uses a simple but strict method to determine day count for tax residency. Every day spent in Thailand is counted, including both arrival and departure days. The calculation is based on the calendar year only, from 1 January to 31 December, and days do not need to be consecutive. All entries and exits during the year are added together.

For example, if you arrive in Thailand on 1 February and stay until 30 June, you accumulate 150 days. You then leave and return from 1 October to 15 December, adding another 76 days. Your total for the year is 226 days, which makes you a Thai tax resident for that year.

Assessable Income in Thailand

In Thailand, Assessable Income refers to any income that is subject to Personal Income Tax (PIT). It is broadly defined under Section 40 of the Revenue Code and serves as the starting point for tax calculations before any expenses or allowances are deducted.

The Revenue Code categorizes assessable income into 8 categories (40(1) to 40(8)). The category is vital because it determines how much standard deduction (expenses) you can claim against that income.

The eight categories of assessable income in Thailand are as follows:

• Income from Business (Section 40(8))
• Income from Employment (Section 40(1)) – Salaries, wages, bonuses, allowances, and any other compensation received as an employee.
• Income from Free Professions (Section 40(2)) – Income from independent professions such as law, medicine, engineering, and architecture.
• Income from Copyrights, Patents, Goodwill, etc. (Section 40(3)) – Royalties or income from the use of intellectual property.
• Income from Interest, Dividends, and Capital Gains (Section 40(4))
• Income from Rental of Property (Section 40(5))
• Income from Liberal Professions (Section 40(6)) – income from professions such as teaching or arts.
• Income from Contractors (Section 40(7))

Read more:

Thai Tax Returns: A Complete Guide to Assessable Income for Tax Residents

Earning Personal Income From Your Thai Company

It is important to understand that any income earned in Thailand is subject to Thai tax, regardless of tax residency status.

Another important consideration is that not all income is taxed at the same rate or has the same reporting obligations. Each type of income has its own requirements.

Salary

Salaries in Thailand are taxed under a progressive personal income tax system, meaning the applicable tax rate increases as income rises. 

Taxable Income	Tax Rate
0 – 150,000	Exempted
150,001 – 300,000	5%
300,001 – 500,000	10%
500,001 – 750,000	15%
750,001 – 1 million	20%
1,000,001 – 2 million	25%
2,000,001 – 5 million	30%
5,000,001 or more	35%

Read more:

Personal Income Tax in Thailand: A Guide to Compliance

Dividends

Dividends are a portion of a company’s profits that are distributed to its shareholders. They are typically paid out on a regular basis, such as quarterly or annually, as a reward for owning shares in the company.

Dividends paid to resident or non-resident individuals in Thailand are subject to a withholding tax rate of 10%. The withholding tax is deducted by the company and paid on behalf of the shareholders. The same withholding tax rate applies to corporate shareholders who are not residents in Thailand.

Read more:

Best Guide to Dividend Payments in Thailand for Expats

Foreign-Sourced Income (Remitted to Thailand)

On 1 January 2024, Thailand introduced Departmental Instruction No. Por. 161/2566, which changed how foreign income is taxed for Thai tax residents.

Under this rule, if you are a Thai tax resident and earn income from overseas sources on or after 1 January 2024, that income becomes taxable in Thailand when it is brought into the country. The income must be included in your personal income tax calculation for the year in which the money is remitted to Thailand.

This change applies only to foreign income earned from 1 January 2024 onward. Any foreign income earned before this date is not considered assessable income, even if it is transferred into Thailand later.

This replaces the previous position, under which foreign income transferred to Thailand in a later year was not subject to Thai personal income tax.

Potential changes to this rule

Under a proposed amendment to the regulations, foreign-sourced income earned and remitted into Thailand within the following 12-month period could be exempt from Thai personal income tax.

Where foreign income is remitted into Thailand after this 12-month period, it may become taxable in Thailand, depending on the individual’s tax residency status, the nature of the income, and the availability of any applicable exemptions or double tax treaty relief.

For example, if foreign income earned in 2025 were transferred into Thailand within 12 calendar months, it would not be taxed under the proposed rule. However, these amendments have not been enacted into law at the time of writing and are therefore not enforceable and should not be relied upon.

What is considered foreign sourced income?

Any income categorized under Section 40 of the Revenue Code can be foreign-sourced if it originates abroad. Common examples include:

Category	Examples
Investments	Dividends from foreign stocks, interest from offshore bank accounts, capital gains from selling crypto or foreign shares.
Real Estate	Rental income from a condo or house owned in another country.
Employment	Salary from a remote job for a company based in the US, UK, SG, etc., where the work is technically deemed “foreign sourced” (though this is a complex area; see note below).
Pensions	Private or state pensions received from abroad (unless exempted by a tax treaty).
Professional Fees	Consulting fees paid by foreign clients for work performed abroad.

Read more:

Thailand Income Tax for Foreigners New Regulation

Personal Allowances & Deductions

Deductions are important for reducing taxable income in Thailand. Here are some key deductions available, along with their respective amounts and conditions:

Deduction Category	Description	Maximum Amount / Conditions
Category (1) Income: Salaries, Wages, Pensions	Deduction against category (1) income derived from salaries, wages, pensions.	50% of assessable income, not more than 100,000 Baht.
Category (2) Income: Service Fees, Agent Fees, Director Fees	Deduction against category (2) income derived from service fees, agent fees, meeting fees, directors fees, etc.	50% of assessable income, not more than 100,000 Baht.
Category (3) Income: Goodwill, Rights	Deduction against category (3) income derived from goodwill, rights.	50% of assessable income, not more than 100,000 Baht. Option to claim actual expenses with substantiation.
Category (5) Income: Rental of Property	Deduction against category (5) income derived from rental of property.	30% for houses, buildings, vehicles, 20% for agricultural land, and 15% for other land. Option to claim actual expenses with substantiation.
Category (6) Income: Professional Services	Deduction against category (6) income derived from professional services.	60% for medical services and 30% for engineering, architecture, legal, accountancy, and fine arts. Option to claim actual expenses with substantiation.
Category (7) Income: Construction Services	Deduction against category (7) income derived from construction services.	60% of assessable income. Option to claim actual expenses with substantiation.
Category (8) Income: Business, Commerce, Agriculture, Industry, Transport activities	Deduction against category (8) income derived from business, commerce, agriculture, industry, transport activities.	60% of assessable income. Option to claim actual expenses with substantiation.
Personal Allowance	Deduction for the care of self (taxpayer).	60,000 Baht.
Spouse Allowance	Deduction for the care of a dependent spouse.	60,000 Baht.
Child Allowance	Deduction for care of a dependent minor and/or child not over 25 years of age.	30,000 Baht per child (biological or adopted, limited to 3 adopted children).
Additional Child Allowance (Born 2018 or later)	Deduction for care of a dependent 2nd and or further child born in or after 2018.	60,000 Baht per biological child.
Parent Allowance	Deduction for care of a dependent parent of a taxpayer or spouse, 60 years of age or older and living in Thailand.	30,000 Baht per parent.
Disability/Incompetence Allowance	Deduction for care of a dependent disabled or incompetent person in Thailand.	60,000 Baht per person.
Parents’ Health Insurance Premiums	For health insurance premiums of the parents of the taxpayer or spouse, 60 years of age or older and living in Thailand.	Amount actually paid but not more than 15,000 Baht per parent.
Spouse’s Life Insurance Premiums	For a spouse’s life insurance premiums paid to a Thailand Insurance Company.	Amount actually paid but not more than 10,000 Baht.
Taxpayer’s Life Insurance Premiums	For taxpayer’s life insurance premiums paid to a Thailand Insurance Company.	Amount actually paid but not more than 100,000 Baht. The total deduction for life insurance premiums and health insurance premiums cannot exceed 100,000 Baht.
Taxpayer’s Health Insurance Premiums	For taxpayer’s health insurance premiums paid to a Thailand Insurance Company.	Amount actually paid but not more than 25,000 Baht. The total deduction for life insurance premiums and health insurance premiums cannot exceed 100,000 Baht.
Thailand Insurance Pension Fund	For the investment of a taxpayer in a Thailand Insurance Pension Fund.	Amount invested of not more than 15% of assessable income, and not more than 200,000 Baht. The total deduction for investments in a Thailand Insurance Pension Fund, Thailand Provident Fund, Thailand National Savings Fund, Thailand Retirement Mutual Fund, and Thailand Super Savings Fund cannot exceed 500,000 Baht.
Thailand Provident Fund	For the investment of a taxpayer in a Thailand Provident Fund.	Amount invested of not more than 15% of assessable income, and not more than 500,000 Baht. The total deduction for investments in a Thailand Insurance Pension Fund, Thailand Provident Fund, Thailand National Savings Fund, Thailand Retirement Mutual Fund, and Thailand Super Savings Fund cannot exceed 500,000 Baht.
Thailand National Savings Fund	For the investment of a taxpayer in a Thailand National Savings Fund.	Amount invested of not more than 15% of assessable income, and not more than 500,000 Baht. The total deduction for investments in a Thailand Insurance Pension Fund, Thailand Provident Fund, Thailand National Savings Fund, Thailand Retirement Mutual Fund, and Thailand Super Savings Fund cannot exceed 500,000 Baht.
Thailand Retirement Mutual Fund	For the investment of a taxpayer in a Thailand Retirement Mutual Fund.	Amount invested of not more than 30% of assessable income, and not more than 500,000 Baht. The total deduction for investments in a Thailand Insurance Pension Fund, Thailand Provident Fund, Thailand National Savings Fund, Thailand Retirement Mutual Fund, and Thailand Super Savings Fund cannot exceed 500,000 Baht.
Thailand Super Savings Fund	For the investment of a taxpayer in a Thailand Super Savings Fund.	Amount invested of not more than 30% of assessable income, and not more than 200,000 Baht. The total deduction for investments in a Thailand Insurance Pension Fund, Thailand Provident Fund, Thailand National Savings Fund, Thailand Retirement Mutual Fund, and Thailand Super Savings Fund cannot exceed 500,000 Baht.
Home Loan Interest	For home loan interest costs of a taxpayer paid on a home mortgage.	Amount actually paid, but not more than 100,000 Baht.
Social Security Fund Contributions	For the contributions of a taxpayer to the Thailand Social Security Fund.	Amount actually contributed.
CCTV for Southern Border Provinces	For the purchase and installation of a CCTV system for business premises in Southern Border Provinces during the period of 01 Jan 2024 to 31 Dec 2026.	Amount actually paid.
Baby Delivery Costs	For the baby delivery costs paid by a taxpayer.	Amount actually paid, but not more than 60,000 Baht per delivery. If over 2 years, the total for the 2 years shall not be more than 60,000 Baht.
Investment in Social Enterprise	For the investment of a taxpayer in a Thailand Social Enterprise.	Amount of the investment, but not more than 100,000 Baht.
Purchases of Goods/Services (Jan 1 – Feb 15, 2024)	For a taxpayer’s purchases of goods and services during the period of 01 Jan 2024 to 15 Feb 2024.	Amount actually purchased, but not more than 50,000 Baht.
Easy E-Receipt 2.0 Program	Purchases made during the Easy E-Receipt program.	Deduct the actual amount paid for goods and services up to a maximum of 50,000 THB.
Thailand ESG Mutual Fund (Jan 1, 2024 – Dec 31, 2026)	For the investment of a taxpayer in a Thailand ESG Mutual Fund during the period of 01 Jan 2024 to 31 Dec 2026.	Amount invested of not more than 30% of assessable income, and not more than 300,000 Baht per year.
New Residential Building Construction (Apr 9, 2024 – Dec 31, 2025)	For a taxpayer’s construction of a new residential building during the period of 09 Apr 2024 to 31 Dec 2025.	10,000 Baht for each 1,000,000 Baht of construction costs actually paid but not more than 100,000 Baht.
Exemption (Disabled Under 65)	For an income tax exemption for a disabled taxpayer under 65 years of age.	Amount of assessable income up to 190,000 Baht.
Exemption (Taxpayer 65 or Older)	For an income tax exemption for a taxpayer 65 years of age or older.	Amount of assessable income up to 190,000 Baht.
Exemption (Involuntary Termination Under Labor Law)	For an income tax exemption for taxpayers receiving a lump sum payment for an involuntary termination under the labor law.	Amount of the lump sum received is not more than the last 400 days of wages or salary, and not more than 600,000 Baht in total.
Donations Entitled to 100%/200% Concessions	For taxpayer donations entitled to the 100%/200% concessions.	Not more than 10% of a subtotaled amount of net income immediately before the donation deduction.

Tax Credits

Credit	Description	Details
Dividend Tax Credit	Credit for taxes withheld on dividend income received by the taxpayer.	Reduces tax liability based on the amount of tax already withheld.

Are there any Exemptions to PIT for Foreign-Sourced Income?

Under Thai tax law, tax residents are subject to personal income tax (PIT) on both Thai-sourced and foreign-sourced income, provided that foreign income is brought into Thailand. In contrast, non-tax residents are only taxed on income derived from Thai sources.

Exemption for Foreign-Sourced Income Earned Before 2024

Foreign-sourced income earned before January 1, 2024, should not be subject to Thai PIT, even if it is remitted to Thailand after 2024. The new tax rules, which apply from January 1, 2024, only impact foreign income earned from 2024 onwards.

This means that:

• Foreign income earned before December 31, 2023, should remain tax-exempt, even if transferred to Thailand in later years.
• Only foreign-sourced income earned on or after January 1, 2024, is subject to PIT if remitted to Thailand.

Our tax experts understand that the Thai tax authorities have confirmed that income accrued before 2024 will not be retroactively taxed, provided there is clear documentation proving that the income was earned before the cutoff date.

Double Tax Agreements

Thailand has signed Double Tax Agreements (DTAs) with over 61 countries. These agreements are designed to help prevent double taxation on income earned abroad. If a taxpayer qualifies for benefits under a DTA, they may be able to exempt or reduce their personal income tax liability on foreign income.

Read more:

Double Tax Agreements in Thailand

Long Term Residency Visa

One of the advantages of the Long-Term Residency (LTR) visa is that holders are exempt from Thai personal income tax on foreign-sourced income, even if they bring that income into Thailand.

However, these LTR Visa Tax Benefits only applies to the following three categories of LTR visa:

• Wealthy Global Citizens,
• Wealthy Pensioners, and
• Work From Thailand Professionals.

Please note, holders of the LTR for Highly skilled professionals are not eligible but instead receive a flat Personal Income Tax rate of 17% on their salary from Thailand.

When and How to File Your Personal Tax Return

The Thai Tax year runs from January the 1st to December 31st every year. The deadline for filing your personal income tax return in Thailand depends on the method of filing. For the 2025 Tax year, the deadlines are as follows:

• Online Filing: April 8th, 2026
• Paper Filing: March 31st, 2026

What is the Required Documentation?

In order to correctly file your PIT return and properly satisfy the Tax Filing Requirements, you will need be able to provide the following documents:

Tax Identification Number (TIN)

Your Tax Identification Number (TIN) is a unique number issued by the Thai Revenue Department. It is required for filing your tax return, making tax payments, and accessing tax-related services such as the online portal for submitting your PIT returns.

Read more:

Tax IDs in Thailand: A Guide for Expats and Businesses

Income Statements 

The PND 1 Kor is provided by your employer and should include the following information:

• Your total income for the tax year.
• Any taxes withheld at the source by your employer.
• Employer details, including company name and tax ID.

Supporting Documents for Deductions and Exemptions

To claim deductions or exemptions on your tax return, you will need to provide supporting documents such as:

• Personal and dependent deductions: Copies of your marriage certificate, birth certificates of children, or proof of dependent care expenses.
• Health and life insurance premiums: Policy documents and receipts from insurance providers.
• Mortgage interest deductions: Loan agreements and bank statements showing interest payments.
• Charitable donations: Official donation receipts from registered charities.
• Retirement savings contributions: Statements from your provident fund, RMF (Retirement Mutual Fund), or SSF (Super Savings Fund).

What is the Personal Income Tax Filing Process?

The Tax Filing Deadlines Personal Income Tax returns are March 31st for physical filings or April 8th for online filings. The process to do so is as follows:

Online Filing

• Register or Log In: Go to the Thai Revenue Department’s website, and register or log in with your Tax Identification Number and password. Please note, the section of the Revenue Department website for submitting tax filings is only available in Thai.
• Complete the Form: Fill out the P.N.D. 90 (for income earned from multiple sources) or P.N.D. 91 (for income earned from salary only) form online, entering all required information accurately.
• Upload Documents: Upload scanned copies of your supporting documents, if required.
• Submit: Review your return and submit it electronically.
• Confirmation: Once the return has been filed you will receive a confirmation of your filing.

Paper Filing

• Download the Form: Download the PND 90 (for income earned from multiple sources) or PND 91 (for income earned from salary only) form from the Revenue Department’s website (only available in Thai language) or obtain a physical copy from a Revenue Department office.
• Complete the Form: Fill out the form manually, ensuring all information is accurate and can easily be read.
• Attach Documents: Attach copies of all required supporting documents.
• Submit: Submit the completed form and documents to the Revenue Department in person or by mail.

What are the Penalties for Failing to or Incorrectly Filing PIT Returns?

In Thailand, failing to comply with the personal income tax requirements can lead to financial penalties being enforced against the offending party. 

The available penalties are split into two main types: direct penalties and indirect penalties.

Penalties:

1. Late Filing: If you fail to file your tax return by the deadline, you may be subject to a fine of up to 2,000 THB for each month of delay. Additionally, a 1.5% monthly surcharge on any unpaid tax amount will accrue until the tax is fully paid.
2. Underreporting: If an inaccurate tax return results in underpayment, you may face a penalty equal to the amount of tax owed. 
3. Criminal Penalties: In serious cases, such as intentional fraud or failure to file a return in order to evade taxes, criminal charges can be filed. This could result in imprisonment for 3 months to 7 years and fines ranging from 2,000 THB to 200,000 THB.

Indirect Penalties:

1. Asset Seizure: The Revenue Department has the authority to seize assets if taxes remain unpaid.
2. Tax Refund Issues: Non-compliance can delay or prevent tax refunds. If there are issues related to your tax filings or payments, refunds may be withheld until these matters are resolved.
3. Work Permit Cancellation: For foreigners working in Thailand, non-compliance with tax obligations can lead to the cancellation of work permits, affecting employment status and residency rights.
4. Restrictions on Leaving Thailand: In more serious cases, failure to settle personal income tax can result in your passport being flagged by the authorities, preventing you from leaving Thailand until the outstanding tax liabilities are cleared with the relevant government departments.

Tax payers in Thailand should be aware that If they disagree with an assessment or decision made by the Revenue Department, they have the right to appeal.

To file an appeal, the taxpayer should submit a written appeal within a specified timeframe following the notification of the assessment. The taxpayer will be required to provide evidence supporting their claim. If the initial appeal is unsuccessful, further recourse may be available through the Tax Court.

Can the Revenue Department Audit Personal Income Tax Submissions?

Personal income tax audits were previously relatively rare in Thailand, however, recently that has changed. The authorities are starting to take a much closer look at personal tax filings, especially where foreign income is involved and money is transferred into Thailand.

Banks in Thailand are required to report certain transactions exceeding a certain value to the authorities, and this information can be reviewed alongside the income declared in your personal tax return. If the Revenue Department notices any discrepancies between funds transferred into your Thai bank account and the income you have reported, this may trigger a tax audit or formal investigation.

Where undeclared income is identified, the Revenue Department has the authority to reassess tax at progressive rates of up to 35 percent, together with penalties and surcharges. 

This risk is higher where income is paid by a company that has already reported the payment through withholding tax or corporate filings, as this creates a clear audit trail. If the income appears in official records but is missing from your personal return, it can be easily identified during a review.

Tax Obligations For Corporate Income From Your Thai Company

When operating a company in Thailand, there are mandatory monthly and annual tax obligations that must be properly managed and filed.

Failure to comply can have serious consequences, not only for the company itself, but also for its directors and any foreign employees whose visas and work permits are linked to the business.

In practice, this includes meeting a number of ongoing compliance requirements, such as completing monthly withholding tax and VAT filings (where applicable), submitting the half-year corporate income tax return (PND 51), and filing the annual corporate income tax return (PND 50) within the required 150-day period.

Companies must also maintain accurate and up-to-date accounting records to support these filings and demonstrate ongoing compliance.

Important Tax Rates and Deadlines For Your Company

Type of Tax	Rate of Tax	Due Dates for Payment of Tax
Corporate Income Tax (CIT)	Standard Rate: 20% SME Rate: SMEs with annual sales not exceeding 30 million baht and paid-up share capital not exceeding 5 million baht are eligible for the following reduced tax rates:  0% for net profits up to THB 300,000, 15% for net profits between THB 300,001 and THB 3 million, and; 20% for net profits exceeding THB 3 million	CIT Half year Return Due Date:  Within 150 days from the closing date of the accounting period (Due within two months after the end of the first six months of the accounting period (e.g., by 31 August for companies with a year-end of 31 December). CIT Final Payment Due Date:  Within 150 days from the closing date of the accounting period (e.g., by 30 May for companies with a year-end of 31 December)
Monthly Withholding Tax (WHT) from Employee Salaries	Between 0 and 35% (Progressive Scale) This is the personal income tax of the employee withheld at source by the employer from the employee’s gross salary.	Payment to be made to the Revenue Department by the 7th of the following month (15th if filed electronically)
Social Security Office (SSO) Contributions	5% of employee’s wage withheld from the employee salary (capped at THB 875 per month) And Employers are required to contribute 5% of each employee’s monthly wage to the Social Security Fund, capped at a maximum of THB 875 per employee per month. Please note, the Social Security contribution in Thailand is capped at 1,750 baht per employee per month.	Payment to be made to the SSO by the 15th of the following month
Value Added Tax (VAT)(if registered)	7%	Payment to be made on or before the 15th day (23rd for e-filing) of the following month in which the payment was made and the issuing of the tax invoice.
Withholding Tax (WHT) on payment for certain services	0-15% <Please see here for more information>	Payment to be made on or before the 7th day of the following month (15th day for e-filing) in which the payment was made.

Read more:

VAT Registration in Thailand and When to Register

Withholding Tax Certificate in Thailand: Section 50 Bis

Annual Filing Requirements & Deadlines For Thai Companies

All Thai companies are required to complete an annual account closing process within 150 days of the end of their financial year. Even dormant or companies that have not made any transactions must complete this process.

To properly complete the annual closing process, the following steps are required:

Preparation of Financial Statements

Companies must prepare annual financial statements in accordance with Thai accounting standards. These statements form the basis for tax filings, audits, and statutory submissions.

Mandatory Audit by a Licensed Auditor

The financial statements must be reviewed and certified by an independent Thai-licensed auditor. The audit confirms that the accounts accurately reflect the company’s financial position and comply with applicable regulations.

Annual General Meeting (AGM)

An AGM must be held to formally approve the audited financial statements. This meeting is a legal requirement, even for companies with a single shareholder or no trading activity. The AGM must be held within 4 months of the end of the company’s financial year

Submission to the Ministry of Commerce

Once the financial statements have been approved at the AGM, the final filing must be submitted to the Ministry of Commerce. This filing must be completed within 1 month.

Read more:

How to Complete the Annual Closing Process for Company Accounts

Can I Optimise My Taxes For Foreign Sourced Income?

Tax optimisation for foreign sourced income in Thailand requires careful planning. The correct approach depends on your visa status, where your income is earned, how funds are transferred into Thailand, and the nature of each transaction. 

Check LTR Visa Eligibility First

The first step for many foreign business owners is to check whether they qualify for a Long-Term Resident (LTR) visa. Certain LTR categories (Wealthy Global Citizens and Wealthy Pensioners) allow holders to receive foreign-sourced income without Thai personal income tax, even when that income is transferred into Thailand.

For individuals with substantial overseas income who intend to spend long periods in Thailand, this can be one of the most effective and straightforward tax planning options. 

Structuring Foreign Income Through Offshore Companies

For business owners who do not qualify for an LTR visa, using an offshore company is often a practical way to manage foreign income efficiently, with Hong Kong being one of the most established and internationally recognised jurisdictions for this type of structure.

Hong Kong is a popular choice due to companies that can be 100% foreign owned, with a single foreign shareholder and a single foreign director. Incorporation and bank account opening can usually be completed remotely. 

Hong Kong also offers attractive tax benefits, for example the corporate income tax rate is 8.25% on the first HKD 2 million (approximately USD 255,000). 

If a company can show that its income comes from outside Hong Kong and that no business activities take place there, it may apply for offshore profits status, which can result in a 0% Hong Kong profits tax position. In addition, dividends distributed by a Hong Kong company are generally not taxed.

Hong Kong also has more flexible accounting practices than Thailand. Business costs and expenses such as flights, hotels, meals, and client entertainment can usually be recorded using standard commercial receipts, without the strict need for VAT-style tax invoices in the company’s name. This often makes bookkeeping more straightforward and allows for a wider range of deductible expenses.

This type of structure allows income to be accumulated offshore and remitted into Thailand in a controlled manner. However, it must be set up and operated correctly. If business activities or management are effectively carried out from Thailand, there is a risk of Thai tax exposure through permanent establishment. Proper structuring with an experienced tax adviser is therefore strongly recommended.

Not All Funds Transferred Into Thailand Are Taxable

A common misconception is that every transfer into Thailand is taxable income. This is not always the case. Certain types of funds are not treated as assessable income, including:

• Personal loans
• Gifts and donations
• Capital transfers that are not income in nature

For transactions like these, it is important to have the right supporting documents to show the Revenue Department that the funds remitted to Thailand match what you have declared. Without clear documentation, the Revenue Department may treat incoming funds as taxable income by default. 

Property Purchases and Large Transfers

When foreigners buy property in Thailand, the purchase funds are required to be transferred from overseas. Larger transfers can draw attention, particularly if the source of the money is not immediately clear.

In a situation like this, using an escrow account or a regulated intermediary can make the process smoother by adding transparency and reducing unnecessary tax questions. 

Before making any large or unusual transfers. It is highly recommended to speak with a tax professional to help confirm the correct treatment and avoid costly mistakes. Our team can assess your situation and advise on the best approach. Contact us here for more information.

Frequently Asked Questions

Q1: Is Thailand a tax haven?

Yes, Thailand can be a tax haven when structured correctly.

Thailand operates a territorial tax system, which creates strong tax-planning opportunities for both individuals and businesses. For individuals, the LTR visa can provide a 0% tax rate on foreign-sourced income, making Thailand highly attractive for internationally mobile professionals and investors. Even outside the LTR regime, Thailand remains a low-tax jurisdiction compared to many OECD countries, with corporate income tax capped at 20%, dividends taxed at 10%, VAT at 7%, and a progressive personal income tax rate capped at 35%.

For businesses, Thailand offers reduced corporate tax rates for SMEs and full or partial tax exemptions for BOI-promoted companies. In addition, Thailand can be combined with offshore structures, most commonly Hong Kong companies, to serve international clients. A Hong Kong company can obtain offshore profits status, resulting in 0% Hong Kong corporate income tax on profits fully sourced outside Hong Kong, with 0% dividend tax, while being 100% foreign-owned and easy to operate. 

Q2: Do foreigners need to pay taxes in Thailand?

Yes, if you’re a tax resident (180+ days) you must file and pay tax on Thailand-sourced income and foreign income remitted to Thailand. Even if you owe zero tax due to deductions, filing is still required. Non-residents (<180 days) only pay tax on Thailand-sourced income. 

Business owners with Thai companies also have to consider the tax position of their business as well.

Q3: What happens if you don’t pay taxes in Thailand?

In Thailand, failing to comply with tax requirements can lead to penalties being enforced against the offending party. 

Penalties:

1. Late Filing: If you fail to file your tax return by the deadline, you may be subject to a fine of up to 2,000 THB for each month of delay. Additionally, a 1.5% monthly surcharge on any unpaid tax amount will accrue until the tax is fully paid.
2. Underreporting: If an inaccurate tax return results in underpayment, you may face a penalty equal to the amount of tax owed. 
3. Criminal Penalties: In serious cases, such as intentional fraud or failure to file a return in order to evade taxes, criminal charges can be filed. This could result in imprisonment for 3 months to 7 years and fines ranging from 2,000 THB to 200,000 THB.

Indirect Penalties:

1. Asset Seizure: The Revenue Department has the authority to seize assets if taxes remain unpaid.
2. Tax Refund Issues: Non-compliance can delay or prevent tax refunds. If there are issues related to your tax filings or payments, refunds may be withheld until these matters are resolved.
3. Work Permit Cancellation: For foreigners working in Thailand, non-compliance with tax obligations can lead to the cancellation of work permits, affecting employment status and residency rights.
4. Exit Restrictions: Failing to satisfy the PIT requirements may lead to the passport of the individual being flagged by the authorities. In such a case, the individual in question will not be permitted to leave Thailand until the situation has been fixed.

Q4: Do foreigners pay VAT in Thailand?

VAT Registration in Thailand is required for most businesses because the country’s 7% VAT applies to a wide range of goods, services, and imports. Companies must register within 30 days once their annual revenue exceeds THB 1.8 million, or if they employ foreign staff. Voluntary registration is also available and can be advantageous for B2B businesses or those with significant input costs, as it allows input VAT recovery, though it does increase compliance obligations. 

Read more:

VAT Registration in Thailand and When to Register

Q5: How long can I stay in Thailand without paying taxes?

In general, you may stay in Thailand for up to 179 days in a calendar year without being treated as a Thai tax resident. Once you reach 180 days, you are considered a tax resident and are required to file a Thai personal income tax return. Days are counted cumulatively across all entries and exits.

For individuals holding a Long-Term Resident (LTR) visa, tax residency is often part of a deliberate planning strategy rather than something to avoid. The LTR offers stability of stay, simplified compliance, and specific tax benefits for qualifying income, making long-term residence in Thailand more predictable and manageable from a tax perspective.

Q6: Do I need to file if my company already withholds tax from my salary?

Yes. Withholding is a prepayment system, your company deducts tax monthly and sends it to the Revenue Department. You still must file an annual return (PND 90) to reconcile total income, claim deductions, and apply withheld amounts as credits. 

Q7: Can I claim foreign taxes I already paid on income brought to Thailand?

Yes, if Thailand has a tax treaty with that country. You can claim foreign tax credits to avoid double taxation. Requires: tax residency certificate from foreign country, proof of foreign tax paid, formal treaty claim filed with Thai return.

When to Use Professional Tax Services

Most foreign business owners in Thailand may benefit from professional tax help due to the complexity of managing both company and personal tax obligations. Issues such as foreign income classification, available deductions, tax treaty claims, and Revenue Department procedures often require specialist knowledge and English-language support. While basic bookkeeping can be handled locally, structured tax planning and compliance typically require experienced accounting services familiar with foreign-owned businesses.

VB & Partners provides tailored tax and accounting support for foreign business owners, investors, and executives. If you require structured advice on compliance, tax optimisation, or cross-border income planning, our team can assist with both company and personal tax matters. Contact VB & Partners to arrange a confidential consultation.

Read more:

How to Choose Your Accounting Firm in Thailand in 2026

Disclaimer

This information is provided for general informational purposes only and is not legal, tax, or financial advice.