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Do expatriates in Thailand have to pay taxes?

Posted by Gates Asia on March 5, 2024
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Thailand is not a tax haven, so there are obviously taxes to pay here too. We’ll reassure you right away that it’s always less than in Europe.

The country charges 7% VAT on most products and services.

If you own an apartment or a car, you’ll be liable for property and vehicle taxes. This does not exclude personal income tax.

It’s important to note that any income earned abroad and brought back to Thailand will be subject to income tax, provided you spend more than 180 days a year in the country.

For expatriates living in Thailand (more than 180 days a year), you will be subject to progressive income tax, provided you earn more than 150,000 baht a year, broken down as follows;

  • Less than 150,000 bahts: 0.
  • 150,000 to 300,000 baht: 5%.
  • 300,000 – 500,000 baht: 10%.
  • 500,000 – 750,000 baht: 15%.
  • 750,000 – 1,000,000 bahts: 20%.
  • 1,000,000 – 2,000,000 bahts: 25%.
  • 2,000,000 – 4,000,000 bahts: 30%.
  • More than 4,000,000 baht: 35%.

However, if your income comes from other sources, such as rented accommodation, the tax is 12.5% on the annual rental income. An additional tax ranging from 0 to 35% may also be added, depending on the income from the property.

For any real estate acquisition in Thailand, various taxes are to be expected.

These include a specific business tax (SBT) of 3.3% on the value of the property, a transfer tax of 2% and a withholding tax of 1%.

If you are not liable for business tax, you may also be subject to stamp duty of 0.5%.

No specific capital gains tax is levied in Thailand. Capital gains realized abroad are not taxable, while those realized in Thailand are considered as normal income.

Companies established in Thailand are subject to a tax on 20% of net profits. However, the rate may vary according to the size and legal structure of the company. For example, small businesses with sales of less than 3,000,000 baht are taxed at only 15%.

Finally, retirees wishing to settle in Thailand are not taxed on income or pensions from their country of origin. To do so, they must hold a retirement visa, and under no circumstances work in the country.

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