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In a move set to overhaul Thailand's welfare and tax system, the Ministry of Finance has announced that from 2027, every Thai citizen must file a personal income tax return. This initiative, part of a broader reform effort, aims to enhance fairness and efficiency under the new 'Negative Income Tax' scheme.

 

Lawaron Sangsanit, Permanent Secretary for Finance, emphasised that the policy does not imply all citizens will pay taxes. Instead, it ensures everyone declares their income. Those with an annual income below the taxable threshold of ฿150,000 will remain exempt from taxes but still qualify for government assistance.

 

"The system guarantees welfare benefits reach those genuinely in need while promoting fairness and transparency in tax collection," Mr Lawaron explained.

 

At the core of this scheme is a newly developed 'data lake', consolidating information from various agencies into a single system. The Ministry aims to improve accuracy in income verification, reduce duplication across more than 20 welfare programmes, and eliminate gaps that previously allowed some higher-income earners to unjustly receive benefits.

 

According to the National Economic and Social Development Council, only 10.7 million of the 19 million registered workers in 2022 filed tax returns, with a mere 4.2 million earning enough to owe income tax. Concurrently, over 13 million Thais possess state welfare cards, many earning above the eligibility threshold.

 

Mr Lawaron noted, "This reform will broaden the taxpayer base by including moderate- and high-income earners who have not previously filed taxes. It also ensures that low-income earners previously excluded from welfare support are now accounted for."

 

The reform impacts different income groups uniquely:

 

• Current taxpayers will experience minimal changes, facing stricter income verification.
• Moderate-income earners who have not filed before may start paying taxes if their income exceeds the threshold.
• Low-income earners stand to gain the most with direct, targeted government support based on verified income data.

 

The Ministry reassured that the reform would not entail increased tax rates but would enhance revenue collection. Integration of data from the Revenue Department, Excise Department, and Customs Department aims to close loopholes that enable tax evasion.

 

Officials anticipate this reform will modernise Thailand’s tax and welfare systems, making them more transparent, equitable, and efficient.

 

"This signifies a transformation of Thailand’s tax system," Mr Lawaron stated. "It's about fairness—ensuring those who can afford to contribute do so, while those in need receive adequate support."

 

  Adapted by ASEAN Now from The Phuket News 2025-08-19

 

This will go down like a lead balloon 

if this really gets implemented by 2027, then the many retired foreigners living in thailand who knowingly don’t follow the new tax laws (2024) can no longer use the excuse "but most thais also don’t pay taxes ..." and also the saying "the tax authorities will have to come personally to my door before i pay a single baht in taxes ..." maybe won't work anymore ....  

 

 

Mr Prayut , please come back.

It gets worse and worse after the last election.

changes nothing except adds a lot of people officially having to lie

Impossible to do, as many people are not registered in the place and address where they live... In my house there are 2 persons registered than doesn't live here, how will they be able to fill in the form?? I don't know where they live so I can't send it to them... First as I wrote several times already must everybody register in the place and address they really live in, before you can do things like this. Besides that there should be a decent register of who owns which property and cars...The idea is good to let everybody fill in a tax form, and it will be a good tool to find corruption, but  as long as there is no decent registration things will fail

1 hour ago, motdaeng said:

if this really gets implemented by 2027, then the many retired foreigners living in thailand who knowingly don’t follow the new tax laws (2024) can no longer use the excuse "but most thais also don’t pay taxes ..." and also the saying "the tax authorities will have to come personally to my door before i pay a single baht in taxes ..." maybe won't work anymore ....  

 

 

Maybe or maybe not. It says 'every Thai citizen' - which presumably means based on their 13 digit national ID as filing/tracking. In any case, if you're a foreigner and earning money in Thailand from a Thai source you should already be paying tax on it. 

And everyone who rides a motorcycle are required to wear a helmet.  

The term that applies most applicably here is "enforcement."  A country can make all of the laws they wish.  Enforcing them is a different story.  My guess is that they don't have the workforce in their MoF to check if all 7M Thais have dutifully filed there taxes.  And there ya have it. 

2 hours ago, snoop1130 said:

Those with an annual income below the taxable threshold of ฿150,000 will remain exempt from taxes

By my calculation - using a liberal daily wage on 400 THB, working six days a week - the average Thai worker would be doing well to hit 125,000 THB per year - maybe in a leap year. Univesity educated middle managers in local Thai companies earn only 30-35k per month - their subordinates if educated or skilled maybe 25-30k per month (that's 1,000 THB per day). Even the foreign embassies when hiring local staff don't pay much more than that unless it's a very senior local hire position (and they are expected to be near-fluent in English - scandalous really).

39 minutes ago, ikke1959 said:

Impossible to do, as many people are not registered in the place and address where they live... In my house there are 2 persons registered than doesn't live here, how will they be able to fill in the form?? I don't know where they live so I can't send it to them... First as I wrote several times already must everybody register in the place and address they really live in, before you can do things like this. Besides that there should be a decent register of who owns which property and cars...The idea is good to let everybody fill in a tax form, and it will be a good tool to find corruption, but  as long as there is no decent registration things will fail

Every thai is on a blue book.

Every thai has an ID number.

Tax return form is online.

Therefore possible to implement.

Or, maybe they change their minds like they did with the weeds, it all depend on who's going to leading the country then.

12 minutes ago, Bredbury Blue said:

Every thai is on a blue book.

Every thai has an ID number.

Tax return form is online.

Therefore possible to implement.

 

Yeah, people with a sixth grade education (maybe) are going to file their taxes online. Sure.

7 minutes ago, John Drake said:

 

Yeah, people with a sixth grade education (maybe) are going to file their taxes online. Sure.

The wife does both of our tax returns.

 

It's possible to implement, but I'm not sure my wife's relatives in the village will know they have to do it, have the nouce to do it, and will be arsed to do it.

48 minutes ago, John Drake said:

 

Yeah, people with a sixth grade education (maybe) are going to file their taxes online. Sure.

Only if they can do it on Facebook...

I'll be OK, I'm not a citizen of this country.

Great ......So Tony will be first in line to pay the massive back taxes he owes from the sale of AIS.......Right?

 

You got to love this quote....

 

Low-income earners stand to gain the most with direct, targeted government support based on verified income data.

 

Considering the whopping 500 baht a month the government pays out to the elderly in Thailand.....I am sure low income folks will be chopping at the bit to get on the government handout  gravy train.......lol......Heck they might even be able to buy a few sandwiches from 7-11 every month.

 

And the benefits to the middle class for paying taxes will be? Well it appears the benefits will be ZERO.....

 

Which will only reinforce the wise decision they have made all their life to never file or pay taxes.........And 2027 is not going to change their mind to start filing or paying,taxes  thats for sure...

 

 

 

 

3 hours ago, Bredbury Blue said:

Every thai is on a blue book.

Every thai has an ID number.

Tax return form is online.

Therefore possible to implement.

every Thai is on a blue book indeed, but doesn't live there actually, Not every Thai is able to use the online forms as many can't even decently read, so impossible to to implement.. If I don't know where the 2 people who are registered in our blue blook live or are, how can the Thai Government know it??? I know people who have 10 or 12 people in their blue book registered and have the same problem. Some only show up when they need an ID card and some never show up like the ones in our.. We know they don't have an ID as they lost it several times...Easy to think that Thais will do everything as they have to... Sorry than you don't know them

Nothing announced or implemented. Don't get your knickers in a twist yet.

5 hours ago, motdaeng said:

if this really gets implemented by 2027, then the many retired foreigners living in thailand who knowingly don’t follow the new tax laws (2024) can no longer use the excuse "but most thais also don’t pay taxes ..." and also the saying "the tax authorities will have to come personally to my door before i pay a single baht in taxes ..." maybe won't work anymore ....  

Who needs an excuse? No one seems to know what's required, so the smart move is to do nothing. If, in the future, they make a move and start enforcing it, we worry about it then. Why spend your time worrying about stuff that isn't currently a problem.

More control plus more nationalism. Make our future impossibly idiotic!

A Thai would only need to make 525 baht a day to crack the 150,000 baht in one year and become a taxpayer....

I'm guessing there are some Thai's, especially older people, who will struggle to achieve this, and won't be able to afford to hire a tax accountant. 

 

A potential growth industry for a smart girl/guy in the village?

49 minutes ago, AlexRich said:

I'm guessing there are some Thai's, especially older people, who will struggle to achieve this, and won't be able to afford to hire a tax accountant. 

 

A potential growth industry for a smart girl/guy in the village?

Tax preparation businesses in the U.S. generate $14.5 billion in annual revenues.

9 hours ago, Bredbury Blue said:

Every thai is on a blue book.

Every thai has an ID number.

Tax return form is online.

Therefore possible to implement.

 

Many are illitirate and uneducated. Good luck with that. Plus, often registered, not where they reside. Good luck with Thai revenue department getting them to file zero liability tax returns in the next two years.

 

 

Integrity Legal says the plan would include tax resident foreigners as well. (Groan.)

lol, there's zero chance this government will be in any position to do anything like this in the run up to 2027

In fact I will be very surprised if they manage to remain in control for a month or two.
 

This is really great news everyone wins especially Steven Seagal

How could this possibly be implemented effectively or even honestly? Most of Thailand is using a cash in hand for their income. Vendors, sex workers, farmers, as well as businesses collect and pay out or get paid using cash in hand. Can you imagine the average sex workers claiming income tax on money made from her working on her back? Or the vendor being honest about their profit selling noodles? I really do not see how this will make any changes except removing those from welfare who do not make enough money to file taxes or those too old to understand what they need to properly fill out their taxes. 

9 hours ago, ikke1959 said:

every Thai is on a blue book indeed, but doesn't live there actually, Not every Thai is able to use the online forms as many can't even decently read, so impossible to to implement.. If I don't know where the 2 people who are registered in our blue blook live or are, how can the Thai Government know it??? I know people who have 10 or 12 people in their blue book registered and have the same problem. Some only show up when they need an ID card and some never show up like the ones in our.. We know they don't have an ID as they lost it several times...Easy to think that Thais will do everything as they have to... Sorry than you don't know them

Every country has people like that

35 minutes ago, thesetat said:

How could this possibly be implemented effectively or even honestly? Most of Thailand is using a cash in hand for their income. Vendors, sex workers, farmers, as well as businesses collect and pay out or get paid using cash in hand. Can you imagine the average sex workers claiming income tax on money made from her working on her back? Or the vendor being honest about their profit selling noodles? I really do not see how this will make any changes except removing those from welfare who do not make enough money to file taxes or those too old to understand what they need to properly fill out their taxes. 

That used to happen in the West - and still does to a certain extent - but it's now well down