Everybody who has an income and is living in Thailand is required to have their own tax ID number. This is issued by the tax office. Bring current identification, for example, your passport. You will also need to show why you need the number. The Revenue Office has English speaking staff that can help with any queries.

Thailand Inland Revenue Department
www.rd.go.th (in English: http://www.rd.go.th/publish/5998.0.html)
Tel: + 66 2247 2748 for more information.

If you live in Thailand for more than half the year, you are classed as a resident for the purposes of taxation. If you are a resident, then you are expected to pay taxes on all income that you earn worldwide.

If you are not a resident and are in the country for less than 180 days each year then you are only expected to pay tax on the income that you get from within Thailand. Ironically, despite not being able to work legally without one, those who do not have a work permit are not exempt from paying taxes.

Individual Tax in Thailand

All income that is counted as assessable falls under the heading of Personal Income Tax (PIT). This includes earnings, and non-cash payments such as accommodation or the use of a car. There are many different categories of individual income such as income from employment, income from a position held, income from royalties or dividends, income from rental agreements, income from construction work or income from any business

An individual taxpayer has a personal allowance of 30,000 Thai Baht. If you are over the age of 65 then your personal allowance increases to 190,000 Thai Baht.

Tax Rates in Thailand

• Those who earn less than 150,000 Thai Baht are exempt from income tax
• From 150,000 to 500,000 Thai Baht the tax rate is 10%
• From 500,000 to 1 million Thai Baht the tax rate is 20%
• From 1 to 4 million Thai Baht is taxed at 30%
• Over 4 million Thai Baht is taxed at 37%

Deductions

Deductions can be made from assessable income. This needs to be done in an exact order:

1. A person completing a tax return will start with the measurable income amount,
2. Take away deductions such as expenses,
3. Then take away any personal allowances.

The amount that is left is the amount that can be taxed. Current deductions can be found at the Internal Revenue office site.

Reporting Taxes in Thailand

The Thai tax year runs from 1st January to the 31st December and the tax return should be turned into the tax office by the March 31st. You may need to submit a return every six months if you are self-employed.

Employers will deduct a certain amount of tax at source and this amount is then offset against the tax bill when you file a tax return. This reduces the possibility of getting a large bill at the time of filing.

An individual is able to file their own tax return, but all returns must be in Thai. If you do not speak Thai, you should seek the help of an accountant.

Payments should be made promptly at the time of filing as there are penalties for late filing and payment.

Double Taxation Agreements with Thailand

It is best to inform tax offices regarding any change in residency. There are a number of double taxation agreements in place with other countries which ensure that you are not taxed twice on any income earned in another country. Thailand currently has 51 such agreements in place and a complete list can be found on the website of the revenue office.

VAT in Thailand

There is value added tax (VAT) imposed on the sale of goods, the provision of services and the importation of goods into Thailand of 10%. Hotels also tend to charge a 10% service charge in addition to VAT, and most restaurants add 8.25% to their bill.

VAT Refund for Visitors to Thailand

Visitors may be able to claim a VAT refund. A tourist is eligible for a VAT Refund if:

• Goods must be purchased from stores displaying the "VAT REFUND FOR TOURISTS" sign.
• Depart Thailand via an international airport
• They are a non-Thai resident who has visited the country for no more than 180 days
• Present Goods and submit VAT Refund Application for Tourist form (can be obtained online or at the airport) and original tax invoice to Customs officer
• They are not a pilot or cabin crew of any departing airline

In addition, you must show your passport.

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