Personal Income Tax in Thailand: A Guide to Compliance

Introduction

Personal Income Tax in Thailand is often a source of confusion for foreigners. There are frequent misunderstandings about what income is considered as assessable, what the compliance requirements are and how to complete the yearly tax filings. 

This guide will provide you with an overview of Personal Income Tax in Thailand, your obligations and how to ensure you avoid any penalties.

What is Personal Income Tax in Thailand?

Personal Income Tax (PIT) in Thailand is a tax placed on the income of individuals. It applies to various forms of income, including: 

• salaries, 
• wages, 
• business profits, 
• interest, dividends, and 
• rental income. 

The amount of PIT owed by an individual depends on your residency status and the source of your income. For residents, income earned both within and outside Thailand is generally taxable (subject to exceptions), while non-residents are typically taxed only on income sourced from within Thailand.

What is Thailand’s Tax Residency Criteria?

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 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)

What are the Tax Assessment Categories for Income in Thailand?

Thai tax law has eight separate tax assessment categories, each with its own set of rules and regulations:

• 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))

What are the Personal Income Tax Filing Requirements?

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 2024 Tax year, the deadlines are as follows:

• Online Filing: April 8th, 2025
• Paper Filing: March 31st, 2025

What are the Personal Income Tax Rates in Thailand?

Thailand uses Progressive Tax Rates, where the tax rate increases as your income rises. Here’s a summary of the tax brackets for the 2024 tax year (filing in 2025).

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%

What are the Available Deductions For Personal Income Tax?

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

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.

Direct 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.

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.

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 TIN 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 P.N.D. 90 (for income earned from multiple sources) or P.N.D. 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 Some Common Mistakes to Avoid When Submitting Personal Income Tax Filings?

There is often a lot of confusion and misunderstandings for foreigners when it comes to their Personal Income Tax liabilities in Thailand. The following are some of the most common examples of mistakes made by expats in Thailand.

Incorrect Tax Residency Status

Foreigners often misunderstand Thai tax residency rules. If you stay in Thailand for 180 days or more in a tax year, you are considered a tax resident and should declare your income. Misclassifying your residency can lead to incorrect tax rates and penalties.

Missing Filing Deadlines

Thailand’s personal income tax return (PND 90/91) is due by March 31 for paper filings and April 8 for online submissions. Late filings result in fines and interest charges on unpaid taxes.

Inaccurate Income Reporting

All income earned in Thailand and certain foreign income brought into Thailand during the same tax year should be reported. Underreporting or omitting income can trigger tax audits and penalties.

Insufficient Documentation

Taxpayers are required to provide proper supporting documents for deductions, exemptions, and tax credits. Missing receipts, invoices, or proof of remittance for foreign income can lead to claims being denied.

Errors in Calculation

Miscalculating taxable income, allowable deductions, or tax credits can result in overpayment or unexpected tax liabilities. Double-check figures or consult a tax professional to avoid mistakes.

Our Thoughts

Ensuring Personal Income Tax compliance as a foreigner in Thailand is very important. While it is a legal requirement for those with assessable income, failing to correctly file PIT returns could have a significant effect on your life in Thailand, for example not being able to renew your visa and work permit on top of fines.

Correctly calculating and submitting your tax returns for the 2024 tax year is even more important due to the new regulations regarding foreign sourced income. If you have assessable income from foreign sourced income, leveraging deductions and exemptions is important. For example, Double Tax Treaties offer the ability to credit taxes paid abroad. 

Also, Long-Term Residency visa holders (except Highly Skilled Professionals) enjoy exemptions on PIT for foreign sourced income.

Our advisory services provide tailored solutions, guiding clients through PIT requirements with expertise in strategic income management and comprehensive support. Contact us for a consultation with one of our tax experts on navigating the new foreign income tax regulations in Thailand.

Disclaimer

Please note, this article is for informational purposes only and is not legal or tax advice.