Personal Income Tax
Based on total earnings during calendar year
Individual personal expense allowance is 60,000 baht. Each employee is also granted an exemption for 50% of their salary income, but with a maximum exempted amount of 100,000 baht.
Additional exemptions include the full amount of any Social Fund tax deducted, plus the first 100,000 baht of any personal life insurance policy premiums paid by taxpayer.
Remaining amount is taxable income.
Tax rates on taxable income:
|The first 150,000 baht||0%|
|150,001 baht||300,000 baht||5%|
|300,001 baht||500,000 baht||10%|
|500,001 baht||750,000 baht||15%|
|750,001 baht||1,000,000 baht||20%|
|1,000,001 baht||2,000,000 baht||25%|
|2,000,001 baht||5,000,000 baht||30%|
|All income above 5,000,000 baht||35%|
Note: There is a government proposal under consideration to increase the 0% tax bracket to cover the first 270,000 baht in annual income.
Corporate Income Tax
Companies with registered capitalization above 5,000,000 baht: Flat 20% tax rate
Companies with registered capitalization at or below 5,000,000 baht:
The first 300,000 baht in profit: 0% tax rate
The next 2,700,000 baht: 15% tax rate
All income above 3,000,000 baht: 20% tax rate
Value Added Tax - The rate currently charged is 7%
Must be charged and collected by any business that records 1,800,000 baht or more in income during a calendar year.
Must be charged and collected by any business that sponsors a foreign work permit.
VAT is not charged on: rent; transportation, medical and health services, educational services, cultural services, exports