What is PIT?
Personal Income Tax (PIT) is a direct tax on income earned by individuals, partnerships, non-juristic bodies, and estates. Taxpayers must calculate their tax, file a return, and pay any balance due each calendar year.
Who Must Pay?
- Residents: Anyone staying in Thailand for more than 180 days in a year. They are taxed on income from both Thailand and foreign income brought into Thailand.
- Non-residents: Taxed only on income earned in Thailand.
Tax Base
Assessable Income
All forms of income, whether in cash or benefits, are taxable. Examples include:
- Salary, wages, or services for employers.
- Fees for services, jobs, or positions.
- Royalties, copyrights, goodwill, annuities, or court-awarded payments.
- Dividends, interest, profit shares, capital gains, or share transfers.
- Rental income, hire-purchase, or contract breach compensation.
- Income from liberal professions (e.g., law, medicine).
- Construction or contract work.
- Business, commerce, agriculture, industry, transport, and other activities.
Deductions & Allowances
Certain deductions and allowances are applied when calculating taxable income. They are deducted from assessable income before allowances are granted. Thus, taxable income is determined as:
Taxable income = Assessable income – deductions – allowances
Tax Rates (Progressive)
Personal income tax rates applicable to taxable income are as follows:
| Taxable Income (THB) | 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 – 4,000,000 | 30% |
| Over 4,000,000 | 35% |
If income from categories (2)–(8) exceeds THB 60,000 per year, tax must be calculated in two ways:
- 0.5% of assessable income, or
- Using the progressive rates above.
The higher amount applies.
Withholding Tax
In some cases, tax is withheld at source and credited when filing the annual return. Key withholding rates:
| Income Type | Rate |
|---|---|
| Employment income | 5–37% |
| Rents & prizes | 5% |
| Ship rental charges | 1% |
| Service & professional fees | 3% |
| Entertainer fees – Thai resident | 5% |
| Entertainer fees – Non-resident | 5–37% |
| Advertising fees | 2% |
⮕ More details: Thailand Revenue Department – PIT
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