Tax Payment Thailand: Scope and Tips

Tax Payment Thailand: Scope and Tips

We all know that financial matters aren’t easy to handle. As an adult, managing money and paying taxes on time is a responsibility.

To further understand the common mistakes most adults make, as well as find out the solution to these, here’s a guide:

Thailand’s Economy

The country has a projected 4-5% GDP growth in the third and last quarter of 2018. This means that there’s a greater need for taxation to be met. Whilst the economy seems to be steadily growing, revenues are more than helpful in supporting the economy.

The 3 Most Common Problems in Tax Payment

No one is exempted from paying taxes unless they are foreign visitors to the country. The government relies on these payments, directly sourced from individuals, companies and other funding resources, to support any of their spendings. With the help of taxes, government help is distributed to the citizens.

Listed below are three common problems in terms of payment:

  • You file your paperwork a week or a month late.

Under Thailand’s Revenue Code, an individual will be fined for not submitting tax reports and paperwork on time. This includes issuing invoices as well. You can read all about it on the official Revenue Department website.

  • You’re not careful with refunds.

A simple thing such as getting a tax refund can be intimidating for some. For instance, tourists may find it confusing. Thailand accepts a rebate on purchased goods from shops within the country, as long as it’s 5,000 baht minimum. The refund is convertible to any currency.

  • You don’t keep up with policy changes.

It’s easy to miss out on any changes in tax laws. Without being aware of minor alterations on taxation policies, you can commit a big mistake. Depending on the gravity of the mistake, you can either be imprisoned or pay a hefty fine. 

How You Should Be Paying Your Taxes

To fully have a grip on the matters of taxation, here’s an updated guide to paying dues:


Residents are taxed based only on the income they receive in-land. You will be considered a resident once you’ve stayed in the country for 180 days or longer. Individual taxes include employment-related and passive income, to name a few. Those with income of under 150,000 bahts are exempted.


This applies to all employees working under corporations, and rates reaching at least 35% for high-earning individuals. At least 5% is deducted from the employees’ income.


The current corporate tax rate imposed is 20%. All trading and passive income, as well as capital gains and losses,  are included. A taxable year consists of a full calendar year. For both resident and non-resident businesses, a surcharge of 1.5% monthly and a full payment of the tax due is imposed, once yearly profits are underestimated by at least 25%.

  • For Local, Resident Businesses:

As mentioned, resident companies, organizations and partnerships are those registered under the banner of the country. Tax is applicable on residents’ overall earnings. The benefit of being a registered company is that dividends, or shared profits, paid to partnerships are exempt from being taxable.

  • For Foreign Residents and Organizations:

Companies, businesses, partnerships and organizations set up in the country but are not registered permanently are taxed only on profits made in-land. However, registered branches will be taxed by income. For more, accurate information and other resources, you can check the Thailand Revenue Department website.

How to Save Money from Taxes

  1. Know that foreign-paid credits can be deducted from taxable liabilities. This is only applicable to Thai-limited businesses.
  2. Check the dividend rate, interest rate and royalties’ rate of each country when remitting income. The withholding tax from each country differs, which should be followed according to double tax treaties.
  3. If you need help with filing, don’t hesitate to pay a professional tax audit and accounting service provider in Pattaya.