Consulting Services on Thailand Income Tax

Advisory Services on Personal Income Tax and Corporate Tax

Thai taxes on foreigners living in Thailand usually take the form of Personal Income Tax (PIT) and Corporate Income Tax (CIT). Navigating the tax laws in Thailand is no simple feat, especially if you are an expat, as the rules can be confusing and the government often amends them, but you don’t have to do it alone.

Siam Legal International is a full-service law firm providing legal services to both businesses and individuals in Thailand, including tax consulting services. We ensure that you and/or your business understand your tax obligations to avoid issues with Thai law, and that you can minimize your tax burden through all legal means available.

This page will explain some of the more common tax rules that apply to expats and businesses in Thailand and how Siam Legal’s experienced and knowledgeable tax advisors can assist with them.

Personal Income Tax in Thailand for Foreigners

Note: This information is accurate as of July 2024. The Thai government is known for altering the tax code without prior notice, so contact us if you have questions about recent updates to Thailand’s tax laws.

Any person, including foreign citizens, who stays in Thailand for 180 days or more is considered a tax resident by the government and the Thai Revenue Department (TRD). Tax residents must pay Personal Income Tax (PIT) on their taxable income.

If you spend 180 days or more out of the year in Thailand and become a Thai tax resident, you must file a PIT return the following year. In Thailand, the tax year is the same as the calendar year.

What income is taxable in Thailand?

Most kinds of income are taxable in Thailand, including retirement income such as pensions and social security, capital gains, wages and other work income, and more.

In the past, "taxable income" was limited to a foreigner’s income that was generated within the borders of Thailand. Foreign-earned income was only taxable if it was brought from abroad into Thailand the same year it was earned.

However, this is no longer the case, as the Thai government has revised its rules. As of August 2024, foreign-sourced income brought into Thailand after January 1, 2024, is taxable regardless of when it was earned.

Furthermore, the TRD has begun exploring amending the tax code again to incorporate the concept of "worldwide income." This would mean that ALL of a tax resident’s foreign-sourced income, regardless of when it was earned or if it was brought to Thailand at all, is taxable. This rule has yet to take effect, but it is likely that it will be approved in the future.

Personal Income Tax Consulting Services for Foreigners in Thailand

Siam Legal’s tax advisors can help you determine your taxable income and tax liabilities to ensure you don’t run into any trouble with the TRD. We can also help you reduce your tax burden by explaining how you can take full advantage of the tax credits and allowances you are entitled to under Thai law.

Our tax team will also analyze any foreign-sourced income you may have to see if it is eligible for tax credits, or to determine if it can be excluded from your assessable income due to a Double-Tax Agreement (DTA) with Thailand. A DTA is a treaty between Thailand and a foreign country that ensures that foreign-sourced income which is taxed in the country it was earned in is not also taxed in Thailand, or is taxed in Thailand for a lesser amount.

By speaking to our experienced tax consultants, you can better understand what the TRD demands of you and plan your Thai taxes in a way that minimizes your burden and prevents audits and penalties.

Corporate Taxes in Thailand

All businesses in Thailand are required to pay taxes in some form, including foreigner- and foreign-owned businesses. There are a few taxes that your business may be liable for, depending on the industry it’s in and the business activities it performs. These include:

• Corporate Income Tax (CIT) – This tax is levied on the income a business generates. Virtually all businesses must pay this tax in Thailand.

• Value Added Tax (VAT) – Any business entity that regularly supplies goods or provides services in Thailand and has an annual turnover exceeding 1.8 million baht is subject to VAT in Thailand. This is an indirect tax paid by the customer, but businesses must still file VAT returns and pay tax (if any) every month.

• Stamp Duty – This tax is levied on documents or "instruments" related to land transfers and leases, stock transfers, debentures, letters of credit, mortgages, promissory notes, annuities, and life insurance policies, among others.

Corporate Tax Advisory Services for Thailand Businesses

Siam Legal’s experienced tax advisors and corporate lawyers can help you set up your company’s taxes in line with all relevant regulations to ensure full compliance with Thai law.

If you are just starting out, our corporate law team can walk you through the entire process of opening a business in Thailand, including setting up VAT and applying for tax credits and incentives from Thailand’s Board of Investment (BOI). We can also assist you in setting up withholding taxes and advise on distinct tax issues facing businesses in your specific industry in Thailand.

Our tax advisors can assist your business by explaining to you both your tax responsibilities and ways that you can reduce your tax burden. We can show you all the credits and write-offs you are entitled to as well as strategies to maximize the value of your business expenses and save you money.

With our tax advisors by your side, you can maximize your profits by minimizing your tax burden while ensuring you don’t run afoul of the TRD. Combine this with our expert business setup services and your new company will be positioned to hit the ground running and accelerate its journey to success.

Contact Siam Legal for Expert Thai Tax Services for Expats and Businesses

To best navigate Thailand’s complex tax laws, Contact Siam Legal today. Whether you’re an individual with complex tax responsibilities or a business manager who needs actionable advice for handling your company’s taxes, we can help. You can leave the red tape to us and enjoy peace of mind while keeping as much of your hard-earned money as possible.

Our Thai tax consulting services are available at an hourly rate, which will depend on the complexity of your case.