Taxes in Thailand

[BlueFlowery01]

Hello,

Can someone please explain to me how taxes are done in Thailand? My dad once mentioned to me that in Thailand if I have income under a certain amount taxes would not be deducted from it, but then again my dad has lived here for almost 30 years and has worked in Thailand as a doctor so I'm not entirely if that's still how it works (like what my dad mentioned to me) now in Thailand.

Thank you.

[Dagfinnur Traustason]

https://thailand.acclime.com/accounting/personal-income-tax/

 

Thailand has a progressiva tax system but as a foreigner that is not employed or working in Thailand, you mostly pay personal income tax on a flat rate of 15%. If you have Thai citizenship, you will pay after the normal system for Thai personal income tax.

Edited January 25, 2021 by Dagfinnur Traustason

[Orton Rd]

So if you are not employed and apply for a tax number they can start taxing you 15% on money you transfer into the country from whatever source? Never knew that.

[HampiK]

3 hours ago, Orton Rd said:

So if you are not employed and apply for a tax number they can start taxing you 15% on money you transfer into the country from whatever source? Never knew that.

No, they not deduct 15% of your incoming money!

They tax your money you earn in Thailand (Or they could tax incoming money from your work you transfer to Thailand in the year of income, but I never heard this happened).
you even can ask back the 15% from interest they deduct at your bank account in Thailand. Right now is the time again for the Tax Refund.

[topt]

11 hours ago, Dagfinnur Traustason said:

https://thailand.acclime.com/accounting/personal-income-tax/

 

Thailand has a progressiva tax system but as a foreigner that is not employed or working in Thailand, you mostly pay personal income tax on a flat rate of 15%. If you have Thai citizenship, you will pay after the normal system for Thai personal income tax.

It's unfortunate the opening statement in the link you provided is as follows -

Quote

Both residents (people residing in Thailand for a period or periods aggregating more than 180 days per tax year) and non-residents have to apply for a personal income tax ID and file a personal tax return each year.

Whilst it may be the letter of the law I have never heard of it being enforced and even claiming back tax withheld from bank interest I have never completed a full personal tax return. The forum is littered with people who are here for more than 180 days and have never applied for a tax ID.

[Dagfinnur Traustason]

6 minutes ago, topt said:

It's unfortunate the opening statement in the link you provided is as follows -

Whilst it may be the letter of the law I have never heard of it being enforced and even claiming back tax withheld from bank interest I have never completed a full personal tax return. The forum is littered with people who are here for more than 180 days and have never applied for a tax ID.

Yes, I agree. It unfortunate, and it is not enforced. They simply don´t have a chance to check things like that yet. Out of what I heard they are working on a system to share information between countries, though. Will probably take another 100 years to implement, and 50 more for people working to understand it.

However, as you say. It´s the law. Out of the OP´s question, that is the best I can provide. ????

 

[topt]

4 minutes ago, Dagfinnur Traustason said:

Out of what I heard they are working on a system to share information between countries, though. Will probably take another 100 years to implement, and 50 more for people working to understand it.

Do you mean CRS - Common Reporting Standards? If so Thailand signed up to implement it but it still has to pass through some legislation from memory and keeps getting put off.

There have been a few threads talking about it and most think it is potentially as much or even more of an issue for wealthy Thai nationals so hopefully it will be a few more years yet.

Unfortunately I don't think it will be as long as the time scales you suggest however.....  

[jrward42]

Sorry to jump in on someone else's topic but I have a tax question. I used to work for a university until the end of March 2020. I don't know if it matters but I am a writer not a teacher. I had a work permit and paid tax for the five years I worked there up until March 2020. 

 

I know I have to pay tax for the three month's work I did but don't know how or how much. The HR guy and everyone at the place I used to work have all moved on but shouldn't be necessary. I had a tax ID when there (and presumably can use the same one that is on my payslip) and tax was deducted for the three months. But I am guessing I have to report that somewhere. I made more than 150,000 baht, which according to the link puts me in the 5% bracket.

 

Since then, I have essentially lived on money made from things in the UK (and the tax is paid there).

 

I guess I just need a link to where it is done. Thanks in advance.

 

 

[khunPer]

15 hours ago, BlueFlowery01 said:

Can someone please explain to me how taxes are done in Thailand?

If you work in Thailand you'll need a TIN (Tax Identification Number), and you will be withheld tax from your salary.

 

TIN can be obtained from the revenue office.

 

Tax year is the same as calendar year, and before the end of March you need to fulfill a tax-return form. If you are due some tax, you need to pay, if have paid too much, you'll get money back.

 

Interest from bank accounts will be withheld 15 percent tax. You can either include your interest income in your annual tax-return form, or just accept the withheld tax, i.e. do nothing.

 

Dividends from stock market and mutual funds, so-called fund books, are withheld 10 percent tax.

 

You are tax resident when you stay in Thailand 180 days within a calendar year. Foreign income transferred into Thailand is income taxable, if it's transferred during the same year as earned (also if you're not working in Thailand), the following years it considered savings, which are free of income tax; however check if there is a Double Taxation Agreement between your home country and Thailand, and what it says about a specific income from abroad, i.e. some income taxed in your home country might not be taxed also in Thailand.

 

There is a Thai income tax calculator HERE.

[Orton Rd]

confusing then, transferred income is taxable but they just don't/can't do it yet?

[UKresonant]

3 hours ago, Orton Rd said:

confusing then, transferred income is taxable but they just don't/can't do it yet?

If transferring income made in the Tax calendar year, e.g. you have salary paid directly to a Thai Bank, it is Taxable, as soon as you have been in Thailand more than 180 days of that calendar year..

 

If you transfer from your savings (from income /dividends of previous years), I understand it would not be taxable.

[vibration]

I recieve pensions from Norway and from the UK (transferred to Norway) and I pay tax to both Norway and Thailand however because of tax agreements between Norway and Thailand i get all my tax paid in Norway refunded and pay very little tax in Thailand last year about 11000 THB.

[topt]

11 hours ago, vibration said:

I recieve pensions from Norway and from the UK (transferred to Norway) and I pay tax to both Norway and Thailand however because of tax agreements between Norway and Thailand i get all my tax paid in Norway refunded and pay very little tax in Thailand last year about 11000 THB.

Presumably however you only do it that way as it is beneficial to you due to the DTA in force?

For many countries this is not the case (eg UK) but every country is different so do your own research.