Taxation
Living in Thailand? You Might Owe Personal Income Tax
This guide explains Personal Income Tax (PIT) for foreign residents in Thailand.
What is PIT?
PIT is a tax you pay directly on your income in Thailand. The rate you pay increases as your income goes up (progressive rate schedule). The Revenue Department sets the rates.
Who Needs to Pay?
- Residents: Anyone who lives in Thailand for more than 180 days in a calendar year is considered a resident for tax purposes. Residents pay PIT on all their income worldwide, including income brought into Thailand.
- Non-Residents: People who don’t meet the residency test only pay PIT on income earned in Thailand.
What Income is Taxed?
This is called “assessable income” and includes both cash and benefits you receive, like a rent-free house or employer-paid taxes. There are eight categories of assessable income, including:
- Salary from an employer
- Income from rental properties
- Business income
Filing and Paying
- Generally, you calculate your tax owed, file a tax return, and pay any tax due by the end of March in the year following the tax year. You file with the Revenue Department.
- Withholding Tax: In some cases, the person paying you (like your employer) will withhold tax from your payment and send it to the government. This amount is credited towards your final tax bill.
