Personal income tax in Thailand | Forvis Mazars
22 September 2025
Individuals liable to pay tax on their income are classified as either ‘resident’ or ‘non-resident’. A resident is any person living in Thailand for a cumulative 180 days or more within a calendar year.
Understanding personal income tax in Thailand
Individuals liable to pay tax on their income are classified as either ‘resident’ or ‘non-resident’. A resident is any person living in Thailand for a cumulative 180 days or more within a calendar year.
Under current regulations, a resident is subject to Thailand’s income tax on all cash income earned worldwide, regardless of where the income is paid, and on the portion of income that is brought into Thailand, regardless of when the income was originally earned.
A non-resident, on the other hand, is subject to personal income tax in Thailand only on income sourced in Thailand.
Taxable income in Thailand includes both cash and benefits in kind and covers income derived from employment, hire of work, royalties, interest, dividends, capital gains, and rental income. This is particularly relevant for expatriates, as Thailand’s income tax for foreigners applies to all individuals working or receiving income from within Thailand, or who are considered tax residents and remit foreign-sourced income into Thailand.
Understanding how Thailand's personal income tax system is essentail for residents, expatriates, and employers. Individuals who earn a salary, operate a business, or receive foreign-source income are required to comply with the regulations set forth in the Thai Revenue Code.
This guide provides an up-to-date overview of personal income tax in Thailand for 2025, including rules on tax residency, applicable rates, allowable deductions, and filing procedures.
Who needs to pay tax in Thailand?
Thailand operates a self-assessment tax system, overseen by the Revenue Department. Anyone earning income in Thailand — including both Thai nationals and foreign individuals — may be subject to personal income tax.
Taxable income includes:
- Employment income (salary, wages, bonuses)
- Income from the hire of work
- Professional fees and business income
- Capital gains, interest, dividends, and royalties
- Rental income and income from property
Thailand's income tax system uses a progressive rate structure, meaning the more you earn, the higher your tax rate, up to a certain ceiling.
Tax residency and foreign-sourced income rules
The distinction between residents and non-residents plays a key role in determining tax liability.
- Thai tax resident: An individual who stays in Thailand for 180 days or more in a calendar year.
- Non-Thai tax resident: Stays in Thailand for less than 180 days during a calendar year.
Income scope:
- Thai tax residents are subject to personal income tax on all sources of income, both domestic and foreign, if the foreign-sourced income is earned on or after 1 January 2024 and brought into Thailand in any tax year. This follows the updated interpretation of Section 41 of the Thai Revenue Code, effective from the 2024 tax year. Prior to 2024, foreign-sourced income was subject to Thai personal income tax only if it was remitted into Thailand in the same year it was earned.
- Non-Thai tax residents are taxed only on income earned within Thailand.
For example, if a foreign employee resides in Thailand for more than 180 days in 2024 and earns foreign-sourced income during that year, such income will be subject to Thai personal income tax if it is brought into Thailand—regardless of whether the remittance occurs in the same year or in any subsequent tax year.
Tax rates
The following table presents the Thailand's personal income tax rates in 2025 for employment income and hire of work. The personal Income tax for foreigners being subject to the same progressive rates as Thai nationals.
Taxable income (Baht) | Tax rate % |
| 0-150,000 | Exempt |
| 150,001-300,000 | 5% |
| 300,001-500,000 | 10% |
| 500,001-750,000 | 15% |
| 750,001-1,000,000 | 20% |
| 1,000,001-2,000,000 | 25% |
| 2,000,001-5,000,000 | 30% |
| 5,000,001 and over | 35% |
Allowances and deductions
The amount of assessable taxable income is net of allowances:
General allowances
Type of allowance | Amount |
| Deductible expenses for income | 50% of income (capped at 100,000 baht) |
| Personal allowance | 60,000 baht |
| Spouse (with no income) | 60,000 baht |
Child and family-related allowances
Type of allowance | Amount |
| Child (with income not exceeding 30,000 baht) (For children under 20, or under 25 if enrolled in university; no limit on biological children, max 3 children total if including adopted) | 30,000 baht per child (Both parents can claim 30,000 baht each) |
| Additional children born from 2018 onwards | 60,000 baht per child (Both parents can claim 60,000 baht each) |
| Pre-natal care and delivery expenses | Amount paid, max 60,000 baht per childbirth |
| Parents (≥60 yrs, Thai nationals, income ≤30,000 baht) | 30,000 baht per parent (Spouse’s parents can be claimed if spouse has no income) |
| Support for disabled person (income ≤30,000 baht, with guardian named on disability ID card) | 60,000 baht per person (Includes spouse, children, parents, spouse’s parents, and 1 non-family disabled person) |
Insurance and health-related deductions
Type of allowance | Amount |
| Life insurance premiums for the taxpayer (≥10-year policy with Thai insurer) | Amount paid, up to 100,000 baht |
| Life insurance premiums (for spouse with no income, ≥10-year policy with Thai insurer) | Amount paid, up to 10,000 baht |
| Health insurance premiums for taxpayer (with Thai insurer) | Amount paid, up to 25,000 baht |
| Health insurance premiums for parents and spouse’s parents (income ≤30,000 baht, with Thai insurer) | Amount paid, up to 15,000 baht |
Note: If the total of life insurance premiums, health insurance premiums, and savings-linked life insurance paid by the taxpayer does not exceed 100,000 baht, pension life insurance premiums may be included within this limit. Any remaining pension life insurance premiums can be claimed separately, up to 200,000 baht (but not exceeding 15% of income), provided the combined total with other pension-related deductions does not exceed 500,000 baht.
Retirement and investment funds
Type of contribution | Deduction limit |
| Provident Fund (PVF) | Up to 15% of income, capped at 500,000 baht |
| Retirement Mutual Fund (RMF) | Up to 30% of income, capped at 500,000 baht (RMF units must be held ≥5 years and redeemed at age ≥55) |
| Super Saving Fund (SSF) | Up to 30% of income, capped at 200,000 baht (SSF investments must be held ≥10 years) |
| Thai ESG Fund (invested during 21 Nov 2023–31 Dec 2023 & 1 Jan 2027–31 Dec 2032) | Up to 30% of income, capped at 100,000 baht (ESG investments must be held ≥8 years) |
| Thai ESG Fund (invested during 1 Jan 2024 – 31 Dec 2026 | Up to 30% of income, capped at 300,000 baht (ESG investments must be held ≥5 years) |
| Thai ESG Extra Fund (invested during 2 May – 30 June 2025) | Up to 30% of income, capped at 300,000 baht (ESGX investments must be held ≥5 years) |
| ESGX switch from LTF (2 May – 30 June 2025) | Up to 300,000 baht in 2025 [Switched ESGX investments must be held ≥5 years) |
| Pension life insurance | Up to 15% of income, capped at 200,000 baht |
| National savings fund contributions | Amount paid, up to 30,000 baht |
| Government pension fund contributions | Up to 15% of income, capped at 500,000 baht |
| Private teacher aid fund contributions | Up to 15% of income, capped at 500,000 baht |
Note:
- The combined allowance for PVF, RMF, SSF, national savings fund contributions, pension life insurance premiums, government pension fund, and private teachers’ aid fund contributions must not exceed 500,000 baht.
- Starting from 1 January 2022, taxpayers who invest in RMFs or SSFs must declare their intention to claim tax deductions directly with the respective asset management company (AMC). This declaration can be made only once and will remain effective until it is formally cancelled.
Other income exemptions
Type | Exemption |
| Thai resident with disability (≤65 years old) | Up to 190,000 baht exempt from income |
| Thai resident aged over 65 | Up to 190,000 baht exempt from income |
Employment-related deductions
Type | Deduction |
| Severance pay upon compulsory dismissal (excluding retirement) | Tax-exempt for wages of last 400 days, capped at 600,000 baht (retroactive from 1 Jan 2023) |
Housing and loan deductions
Type | Deduction |
| Home mortgage interest | Amount paid, capped at 100,000 baht (shared if joint loan) |
| House construction expenses | 10,000 baht per 1,000,000 baht in cost, capped at 100,000 baht (VAT-registered contractors, build between 9 Apr 2024 – 31 Dec 2025) |
Other contributions and donations
Type | Deduction |
| Social Security Fund | Amount actually paid |
| Charitable donations | Up to 10% of income after deductions (double deduction allowed for government hospitals, schools, and approved charities) |
| Donations to political parties | Amount actually donated, up to 10,000 baht |
| Investment in social enterprises | Amount actually invested, up to 100,000 baht |
Social Security Fund and Provident Fund
Social Security Fund (SSF)
- Standard contribution rates: Both employees and employers are required to contribute 5% of the employee's monthly salary to the SSF, capped at 750 baht per month.
- Temporary reduction (Oct 2024 – Mar 2025): In response to severe flooding across 55 provinces, the Thai Cabinet approved a temporary reduction in SSF contributions for both employers and employees under Section 33. Effective from October 2024 to March 2025, the contribution rate as been reduced from 5% to 3% with a maximum of 450.
Provident Fund
- Nature: The Provident Fund is a voluntary retirement savings scheme jointly contributed to by employers and employees.
- Contribution rates: Both parties can agree to contribute between 2% and 15% of the employee's monthly salary. Employees may contribute at a higher rate than employers, up to the 15% limit.
- Tax benefits:
- For employees: Contributions are tax-deductible up to 500,000 baht per year. Investment returns earned are exempt from personal income tax. Upon retirement or after meeting the minimum holding period (typically five years and reaching age 55), lump-sum withdrawals may be tax-exempt or subject to preferential tax treatment.
- For employers: Contributions are considered deductible expenses for corporate income tax purposes, up to 15% of each employee’s salary.
Employee Welfare Fund (EWF)
- Implementation date: Effective from 1 October 2025.
- Applicability: This requirement is mandatory for employers with 10 or more employees who do not provide a Provident Fund or equivalent benefits.
- Contribution rates:
- From 1 October 2025 – 30 September 2030: Both employers and employees contribute 0.25% of the employee's total monthly wage—with no wage ceiling applied
- From 1 October 2030 onwards: Contribution rates increase to 0.5% for both parties.
- Exemptions: Employers who already have a Provident Fund or provide equivalent benefits covering all employees from the start of their employment may be exempt from contributing to the EWF.
- Purpose: The EWF is designated to provide financial support to employees in the event of termination, resignation, or death, serving as a critical safety net for workers not covered by other retirement or welfare schemes.
Payments and forms
The employer is responsible for completing and submitting Form PND 1, which reports monthly withholding income tax, as well as social security fund contributions,provident fund contributions,and other statutory deductions, where applicable. The employee is responsible for completing and submitting an annual personal income tax return by Form PND 90 or Form PND 91.
| Payment | Submission and payment deadline |
| PND 1 | Personal income tax withheld from employees | On or before the 7th of the following month (paper) or the 15th of the following month (e-filing) |
| SPS 1 -10 | Social security fund | On or before the 15th of the following month |
| Provident fund | Contributions must be made within 3 working days of salary payment | |
| PND 90 or 91 | Personal income tax | By the following 31 March 2025 (paper) or 8 April 2025 (e-filing) for income earned in the current tax year. |
Allowances, deductions, and exemptions
Taxpayers can significantly reduce their personal income tax in Thailand through a range of standard allowances and deductions:
Common allowances:
- Standard deduction for employment income: 50% of income, up to THB 100,000
- Personal allowance: THB 60,000
- Spouse allowance: THB 60,000 (if spouse has no income)
- Child allowance: THB 30,000 per child (THB 60,000 for additional children born from 2018 onwards)
- Parental care: Up to THB 30,000 per parent
- Life insurance premiums: Up to THB 100,000
- Provident fund contributions: Up to 15% of salary (capped at THB 500,000)
Tip: Proper documentation and professional tax planning can significantly optimise tax liabilities.
When & how to file personal income tax in Thailand
When
- The tax year in Thailand follows the calendar year: 1 January to 31 December.
- Personal income tax returns must be filed by 31 March of the following year.
How
- Taxpayers must file a PND91 (for employment income) or PND90 (for other types of income).
- Filing can be done online through the Thai Revenue Department e-Filing portal or at the local Revenue Office.
- If you are employed, your employer will typically deduct tax monthly via the withholding tax system. However, you must still file an annual personal income tax return.
Penalties for late filing or non-compliance
Failure to file personal income tax in Thailand on time or underreporting income can lead to:
- Surcharge of 1.5% per month of unpaid tax
- Fine of up to THB 2,000 for late filing
- Criminal penalties in severe cases of evasion
It is strongly advised to consult a professional, especially when it comes to dealing with income tax for foreigners in Thailand, to avoid penalties and ensure compliance with current laws.
How Forvis Mazars can help
Understanding Thailand’s income tax system can be challenging, particularly for expats and individuals with foreign income. Forvis Mazars Thailand provides tailored advisory and compliance services to help you stay informed and meet your tax obligations efficiently.
Our team of tax experts can:
● Assess your residency and tax obligations
● Help optimise your allowances and deductions
● Guide you through e-filing and annual returns
● Provide clarity on Thailand’s income tax updates and rules for 2025
If you need help filing your taxes or understanding your obligations under personal income tax in Thailand, contact the Forvis Mazars Thailand team today.
Contacts
Narong Prayoonrat Payroll Processing Director - Bangkok
