Introducing Thailand Tax Calculator

Taxation in Thailand may be a complicated and difficult procedure, particularly for international companies operating in the country. The tax system in Thailand functions based on self-assessment, where taxpayers are responsible for reporting their tax obligations in designated tax forms and settling the due taxes upon submission. In this guide, we will simplify the complexities of Thailand’s personal tax framework by offering comprehensive overviews of: 

Personal tax computation

Under the Thai Revenue Code, residents and non-residents are obligated to pay taxes on all income earned within Thailand, regardless of whether it is received domestically or abroad. Moreover, income generated outside of Thailand becomes taxable if it is remitted into the country within the same tax year it was earned. The personal taxable income is calculated by: 

Taxable income = Assessable Income – deductions – allowances 

Thailand assessable income 

According to the Thai Revenue Code, assessable income in Thailand is classified into eight categories as follows:  

  • income from personal services rendered to employers; 
  • income by virtue of jobs, positions or services rendered; 
  • income from goodwill, copyright, franchise, other rights, annuity or income in yearly payments derived from a will or any other juristic Act or judgment of the Court; 
  • income in the nature of dividends, interest on deposits with banks in Thailand, shares of profits or other benefits from a juristic company, juristic partnership, or mutual fund, payments received as a result of the reduction of capital, a bonus, an increased capital holdings, gains from amalgamation, acquisition or dissolution of juristic companies or partnerships, and gains from transferring of shares or partnership holdings; 
  • income from letting of property and from breaches of contracts, installment sales or hire-purchase contracts; 
  • income from liberal professions; 
  • income from construction and other contracts of work; 
  • income from business, commerce, agriculture, industry, transport or any other activity not specified earlier. 

Individual tax rates in Thailand 

Thailand employs a progressive tax system for personal income tax, the rates of which are as follows: 

Taxable income (THB) 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% 

The information provided in the table originates from The Revenue Department 

The taxable income of an individual is arrived at after all deductions and allowances have been applied to the assessable income.  

Deductions and Allowances 

Deductions allowed for the calculation of personal income tax: 

Type of Income Deduction 
a. Income from employment 40% but not exceeding 60,000 baht 
b. Income received from copyright 40% but not exceeding 60,000 baht 
c. Income from letting out of property on hire:  
1) Building and wharves 30% 
2) Agricultural land 20% 
3) All other types of land 15% 
4) Vehicles 30 
5) Any other type of property 10% 
d. Income from liberal professions 30% except for the medical profession where 60% is allowed 
e. Income derived from contract of work whereby the contractor provides essential materials besides tools actual expense or 70% 
f. Income derived from business, commerce, agriculture, industry, transport, or any other activities not specified in a. to e. actual expense or 65% – 85% depending on the types of income 

The information provided in the table originates from The Revenue Department 

Allowances allowed for the calculation of personal income tax: 

Types of Allowances Amount 
Personal allowance  
Single taxpayer 30,000 baht for the taxpayer 
Undivided estate 30,000 baht for the taxpayer’s spouse 
Non-juristic partnership or body of persons 30,000 baht for each partner but not exceeding 60,000 baht in total 
Spouse allowance 30,000 baht 
Child allowance (child under 25 years of age and studying at educational institution, or a minor, or an adjusted incompetent or quasi-incompetent person) 15,000 baht each 
(limited to three children)  
Education (additional allowance for child studying in educational institution in Thailand) 2,000 baht each child 
Parents allowance 30,000 baht for each of taxpayer’s and spouse’s parents if such parent is above 60 years old and earns less than 30,000 baht 
Life insurance premium paid by taxpayer or spouse Amount actually paid but not exceeding 100,000 baht each 
Approved provident fund contributions paid by taxpayer or spouse Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht 
Long term equity fund Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht 
Home mortgage interest Amount actually paid but not exceeding 100,000 baht 
Social insurance contributions paid by taxpayer or spouse Amount actually paid each 
Charitable contributions Amount actually donated but not exceeding 10% of the income after standard deductions and the above allowances 

The information provided in the table originates from The Revenue Department 

Looking for assistance with your Thailand personal tax calculations?   

We hope that this guide streamlines the Thai personal tax system and assists you in understanding the complex tax rates in the region. For an estimation of your Thailand taxes, please refer to the RBA online Thailand Tax Calculator. 

If you require additional tax assistance or information for your Thai company, please do not hesitate to contact us. Startups have to manage numerous company accounts and tax filings over the years, and our professionals are highly skilled in taxation and auditing. Reach out to RBA today for expert support!

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