Revenue Code

Chapter III — Personal Income Tax

Income for personal income tax purposes is divided into eight categories: (1) employment income, (2) income from a position or services rendered, (3) goodwill / copyrights / annuities, (4) interest / dividends / capital gains / loan interest, (5) rental income, (6) income from liberal professions, (7) income from contracts of work, and (8) income from business, commerce, agriculture etc. The category determines available deductions and the rate of any withholding tax.

Chapter III — Personal Income Tax

An individual is a tax resident of Thailand if present in Thailand for 180 days or more in a tax (calendar) year. A resident is taxed on income from Thai sources and, under the Por.161/2566 interpretation effective 1 January 2024, on foreign-source income remitted into Thailand in any year (the previous 'same-year-only' interpretation no longer applies). A non-resident is taxed only on Thai-source income.

Chapter III — Personal Income Tax

After category-specific expenses are deducted under Section 42 bis to 46, the resident taxpayer is entitled to a personal allowance, spouse allowance, child allowance, parental-care allowance, life- and health-insurance premium allowances, mortgage-interest allowance, and contributions to provident funds, the Retirement Mutual Fund (RMF) and the Super Savings Fund (SSF) within statutory caps.

Chapter III — Personal Income Tax

Personal income tax is charged at progressive rates: 0% up to THB 150,000 of net income, 5% on THB 150,001–300,000, 10% on THB 300,001–500,000, 15% on THB 500,001–750,000, 20% on THB 750,001–1,000,000, 25% on THB 1,000,001–2,000,000, 30% on THB 2,000,001–5,000,000, and 35% on income over THB 5,000,000.

Chapter III — Personal Income Tax

Payers of income — employers, companies paying dividends, interest or rent — are required to withhold income tax at source at rates set by the section and accompanying Ministerial Regulations, and to remit the withheld tax to the Revenue Department by the 7th of the following month (Por. Ngor. Dor. 1, 3, 53 etc.). Failure to withhold renders the payer jointly liable with the recipient.

Chapter III — Personal Income Tax

Every individual having assessable income in a tax year must file an annual personal income tax return (Por. Ngor. Dor. 90 for general income, 91 for employment-only) and pay any remaining tax by 31 March of the following year (or by 8 April for online filing). A half-year return (PND.94) is also required for taxpayers with certain non-employment categories of income.

Chapter III — Corporate Income Tax

A juristic company or partnership carrying on business in Thailand is taxed on its net profits, determined according to generally accepted accounting principles as adjusted by the Revenue Code (Section 65 ter sets out non-deductible items). The standard CIT rate is 20% of net profits; small and medium enterprises with paid-up capital not exceeding THB 5 million and revenue not exceeding THB 30 million enjoy reduced rates under Royal Decree.

Chapter IV — Value Added Tax

For VAT purposes, 'sale' includes the transfer of ownership of goods, the supply of goods on hire-purchase, the giving of goods as a gift in the course of business, the use of goods of one's own business otherwise than for business purposes, and the holding of goods on the date of cessation of VAT registration. The breadth of this definition catches many transactions that would not constitute 'sale' under general civil law.

Chapter IV — Value Added Tax

The standard rate of VAT under the Revenue Code is 10%, but by Royal Decree the rate has been reduced to 7% for many years and remains at 7% as of 2026. Exports of goods and certain international services are zero-rated. Small operators below the registration threshold (Section 85/1) are not required to charge VAT.

Chapter IV — Value Added Tax

A person carrying on business with annual sales of goods or supplies of services exceeding THB 1,800,000 is required to register for VAT within 30 days of crossing the threshold. Below this threshold, registration is optional but may be commercially advantageous to recover input VAT.

Chapter V — Specific Business Tax

Specific Business Tax is charged in lieu of VAT on certain financial and real-estate businesses, including banking and similar businesses, life insurance, pawn-broking, sale of immovable property in a commercial or profitable manner, and other businesses specified by Royal Decree. The standard SBT rate is 3.3% (3% plus 10% municipal surcharge). SBT applies to immovable-property sales within five years of acquisition.