| I. |
Income Subject To Thai Personal Income Tax |
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Generally, income earned by an individual in Thailand is subject to the personal income tax regardless of whether such income is paid inside or outside of Thailand.
Additionally, income earned by an individual outside of Thailand from property or an employer located in Thailand is subject to the tax. Income earned abroad by a person who resided in Thailand for at least 180 days during a calendar year is subject to the Thai personal income tax only to the extent that such income is brought into Thailand during that year.
There are some exemptions from the Thai personal income tax. Most importantly, the tax treaty provisions on personal services often provide relief to persons who work temporarily in Thailand. Income earned by UN and diplomatic personnel in Thailand generally is exempt from the tax.
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| II. |
Calculation Of Net Income |
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The Thai personal income tax is imposed on net income. Taxpayers are granted a standard deduction of 40 percent of wages or salary earned from employment, up to a maximum deduction of 60,000 baht. There are special rules for calculating deductions for other types of income earned by individuals. Taxpayers are also granted a personal allowance of 30,000 baht per individual, as well as allowances for spouses, children, contributions to provident funds, the social security fund and charitable contributions. |
| III. |
Interest And Dividend Income |
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Interest income is subject to 15 percent tax withholding by the interest payer. The taxpayer may elect not to include that interest income in his net income. Dividends paid by a company or mutual fund organized under Thai law are subject to 10 percent withholding at the time of payment and likewise the taxpayer may elect not to include the dividend in his net income.
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| IV. |
Tax Rates |
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The Thai personal income tax is imposed on an individual's net income at progressive, graduated rates as follows: |
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| Net income (Thai Baht) |
Tax Rate |
| 0- 80,000 |
Not taxed |
| 80,001- 100,000 |
5.0% |
| 100,001- 500,000 |
10.0% |
| 500,001-1,000,000 |
20.0% |
| 1,000,001- 4,000,000 |
30.0% |
| Over 4,000,001 |
37.0% |
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