Taxes Imposed on Expatriates in Thailand

1. Are expatriates subject to taxation in Thailand?

A: Yes, expatriates are subject to taxation in Thailand since Thai laws impose taxes on both residents and non-residents. Therefore, as long as the expatriate resides in Thailand for a period of at least 180 calendar days in a year, then he is liable to pay taxes.

2. What kind of income is taxable from expatriates in Thailand?

A: Personal income derived from sources within Thailand, regardless of the actual place where the payment was made.

3. What are examples of assessable income on the part of expatriates?

A: Below are few examples of the assessable income from expatriates:
Income derived from hire of services such as services rendered in an employer-employee relationship
Income derived from the hire of work such as services rendered as an officer or as a person holding a position in the company
Income derived from intellectual property rights such as goodwill and copyright as well as from annuities
Income derived form the lease of properties
Income derived from services rendered by liberal professionals
Income derived from construction contracts and services rendered where tools and materials are supplied
Income derived from business, commerce, or industry not enumerated in the preceding numbers
4. Are there classes of income derived by expatriates that are exempt from tax? If yes, what are examples of those?

A: Yes, there are certain classes of income derived by expatriates that are exempt from tax. Below are examples of such:
Income obtained from the sale of an immovable property given to the expatriate either as a gift or a donation;
Income obtained from the sale of a residential building which was subsequently spent for acquiring a new residential building within 1 year before or after the sale;
Income obtained from the sale of shares listed in the Thailand Stock Exchange;
Income obtained from interest that has already been withheld at the rate of 15% at source
Income obtained from dividends or profit shares from a Thai registered company or a mutual fund, provided that 10% of such dividends have already been withheld at source
This article was provided by Siam Legal, an international law firm with offices in Bangkok, Chiang Mai, Hua Hin, Pattaya, Phuket, and Samui. Siam Legal publishes guides to dealing with tax in Thailand on its website.

Siam Legal International
Interchange 21 Building, 23rd Floor, 399 Sukhumvit Road
North Klongtoey, Wattana, Bangkok 10110