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Overview of Taxation in Thailand

:: Corporate Income Tax
:: Value Added Tax (VAT)
:: Zero Rated VAT
:: Specified Business Tax (SBT)
:: Personal Income Tax
:: Personal Income Tax Deductions
:: Other Taxes

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Taxation in Thailand - Personal Income Tax

Every person, resident or non-resident, who derives assessable income from employment of business in Thailand, or has assets located in Thailand, is subject to personal income tax, whether such income is paid in or outside of Thailand. Exemption is granted to certain persons, including United Nations' officers, diplomats and certain visiting experts, under the terms of international and bilateral agreements.

Personal income tax is applied on a graduated scale as follows:

Net Annual Income (in Thai Baht) & Tax rate
:: 0 - 50,000 = 0 %
:: 50,001 - 100,000 = 5 %
:: 100,001 - 500,000 = 10 %
:: 500,001 - 1,000,000 = 20 %
:: 1,000,001 - 4,000,000 = 30 %
:: 4,000,001 = up to 37 %

Individual taxpayers are divided into 5 categories:

:: Natural person
:: An ordinary partnership
:: A group of persons which is not a legal entity
:: A person who dies during a tax year
:: An undistributed estate

Individuals residing for 180 days or more in Thailand during any calendar year are also subject to income tax on income from foreign sources if that income is brought into Thailand during the same taxable year of their being resident in Thailand, even though they may be aliens and are not staying in Thailand under an Immigrant Visa.

Exchange control laws stipulate that all foreign exchange earned by a resident, whether or not derived from employment or business in Thailand, and brought into Thailand, must be sold to or deposited with commercial banks within 15 days, unless permission for an extension is granted.

A non-resident is a Thai or an alien who resides in Thailand for one or more times but for less than a total of 180 days in any calendar year. His tax liability is limited to the income received;

:: From a post or office held in Thailand;
:: from a business carried on in Thailand;
:: from a business of an employer in Thailand;
:: from a property situated in Thailand;


whether such income is paid within or outside Thailand and whether or not he brings it into Thailand.

Payment of personal income tax may be made under one of the following methods:

:: Withholding Income Tax
:: Payment of tax before its due date
:: Payment of tax on its due date
:: Joint tax liability
:: Assessment by tax authorities

If a tax payer has overpaid his tax by either direct payment or tax deduction, he is entitled to request a refund from Revenue Department on the excess amount, provided that he files a claim for the refund (form 'Khor 10') with the tax authority within 3 years.

Personal income taxes and tax returns must be filed prior to the end of March of the year following the year in which the income was earned.

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