Thailand

Individual - Income determination

Last reviewed - 21 January 2021

Employment income

Both resident and non-resident individuals who receive assessable income by virtue of hire of service performed in Thailand, including salary, bonuses, gratuities, pensions, the monetary value of rent-free housing, the employer’s payment of income tax, or any other money, property, or benefits derived by virtue of hire of service, are subject to tax in Thailand, regardless of whether the income is paid within or outside Thailand. There are no concessions to foreigners or short-term residents.

Capital gains

Most types of capital gains are taxable as ordinary income. However, the following capital gains are exempt from tax:

  • Capital gains on the sale of shares in a company listed on the Stock Exchange of Thailand, provided that the sale is made on the Stock Exchange of Thailand, and on the sale of investment units in a mutual fund.
  • Gains on the sale of non-interest bearing debentures, bills, or debt instruments issued by a corporate entity, except in the case where the bonds or debt instruments were sold for the first time at a price lower than their redemption price to an individual.
  • Gains on the sale of securities listed on stock exchanges in the Association of Southeast Asian Nations (ASEAN) member countries and traded through the ASEAN Link, excluding securities in the form of treasury bills, bonds, bills, or debentures.

Capital gains and investment income earned by a resident from sources outside Thailand are not taxable unless remitted to Thailand in the year of receipt.

Capital losses may not be offset against capital gains.

Dividend income

Dividends received from a company incorporated in Thailand are subject to withholding tax (WHT) at a flat rate of 10%. A resident of Thailand receiving dividends from companies incorporated in Thailand may elect to exclude this income from the computation of income tax and waive the tax credit referred to in the Other tax credits and incentives section.

Interest income

Interest received from bank deposits, loans to finance companies, debentures, and bills issued by a corporate entity is subject to WHT at a flat rate of 15%. Individuals may choose to exclude interest income from other income, in which case they pay the 15% WHT, or they may choose to include such interest income with other income and pay tax according to the PIT rates, in which case the tax withheld at source is credited against the tax liability.

Cryptocurrencies and digital tokens

Share of profits or any benefits from holding or possessing digital tokens or gains from the transfer of cryptocurrencies or digital tokens are subject to a WHT at the flat rate of 15%.

Gifts

PIT is levied on gifts given by persons who are still alive. The tax is collected on the assets or the amount given to parents, ascendants, descendants, spouse, or others based on the value of the gift that exceeds a prescribed threshold, which depends on the type of gift and donor. Assets or amounts given that do not exceed the threshold are exempt from tax.

The following gifts are exempt from PIT:

  • Income derived by a parent from the transfer of ownership or possessory right in an immovable property without any consideration to a legitimate child, excluding an adopted child, in the amount not exceeding THB 20 million throughout a tax year in respect of each child.
  • Maintenance income or gifts from ascendants, descendants, or spouse, in the amount not exceeding THB 20 million throughout a tax year.
  • Maintenance income derived under a moral obligation or gifts made in a ceremony or on occasions in accordance with established custom from persons who are not ascendants, descendants, or spouse, in the amount not exceeding THB 10 million throughout a tax year.
  • Income from gifts in the case where the person who receives the gifts will use them for religious, educational, or public benefit purposes according to the intention of the donors under the criteria and conditions referred to in the Ministerial Regulations.

Gifts in excess of the above thresholds will be subject to PIT at the rate of 5% and will not need to be included together with other income when computing the annual PIT liability.

Exempt income

Certain types of income are exempt from PIT. In respect of income from employment, money derived in the form of per diem, traveling expenses, and certain fringe benefits, such as medical treatment, are tax exempt. The exemptions also include maintenance income derived under moral obligation (see Gifts above) and corpus of a legacy or inheritance (see Inheritance tax in the Other taxes section).

Furthermore, provided certain conditions are met, gains or benefits from registered provident funds, retirement mutual funds, long-term equity funds, and national saving funds, including amounts derived from insurance or social security funds, are also tax exempt.

In order to support low income earners and the aged, the first THB 150,000 of net income is tax exempt. For a resident who is 65 years of age or older, an exemption is granted on income up to an amount not exceeding THB 190,000.