Does anyone know the current income tax rates that foreigners pay for income in Baht earned at a Thai company?

I found the table below, but not sure what rates apply might apply to foreigners in Thailand.

Thanks,

T

Income Range

Tax Rate

Changes

0 – 150,000

Exempted

150,000 – 300,000

5%

New Tax Rate

300,000 – 500,000

10%

500,000 – 750,000

15%

New Tax Rate

750,000 – 1,000,000

20%

1,000,000 – 2,000,000

25%

New Tax Rate

2,000,000 – 4,000,000

30%

4,000,001 and Up

35%

New Tax Rate (Reduced from 37%)

Section 3.1:

http://www.rd.go.th/publish/6045.0.html

I'm a bit confused about the "progressive" tax - ie whether taxes are applied to portions of the income at each level ie x% on the first 500k + x% on the next 200k etc.

Can anyone help with how these are actually calculated with a real life example?

How much tax is payed by a foreign worker earning 90k baht per month from a Thai company?

Foreign nationals are taxed the same as Thai nationals. Companies often work out your yearly tax liability, divide it by 12 and pay that amount of tax per month. They do this to even things out and make your income more stable.

90k a month = 1,080,000 baht a year.

You would pay:

0 - 150,000 =0% = 0

150,000 - 300,000 =5% = 7,500

300,000 - 500,000 =10% = 20,000

500,000 - 750,000 = 15% = 37,500

750,000 - 1,000,000 = 20% = 50,000

1,000,000 - 1,090,000 =25% = 22,500

Total tax payable per year = 137,500

Gross total tax payable per month = 11,458

BUT

You have deductions and allowances that can be deducted to get your net payable tax. Most companies will deduct the obvious ones when doing your tax calculation so you will pay roughly the right amount. At the end of the year you should file your taxes yourself (can be done online but get help if you don't read Thai). At this point you will get a refund if you have overpaid.

Hint: Have a look at LTF products. You can calculate your taxes then invest in them before the year ends. You then claim the investment against tax. Chances are you would then get a large tax rebate because you would have added a large credit to the system. You then keep the LTF for five years and cash it out tax free.

Also remember you have to pay 750 a month for social fund. No rebates or allowances on this.

Edited November 18, 201510 yr by blackcab

Hi Blackcab,

Thank you for a tremendously helpful response! You laid it out perfectly.

Every once in a while on TV we get so much more than we pay for !

Thanks again,

T