Thailand Income Tax Rates: Personal, Capital Gains and Corporate Tax

Thailand personal income tax rates

Thailand generally applies progressive personal income tax to annual net taxable income, after qualifying expenses and allowances. The following marginal rate bands are supported by the Thai Revenue Department's official personal tax return guidance and have also been used for the 2018-2019 years.

Rates are marginal, not a flat rate on the taxpayer's entire income. The first THB 150,000 of qualifying net taxable income is exempt under the published schedule. See the Revenue Department personal tax guide.

For example, net taxable income of THB 500,000 attracts 5% on the THB 150,000 band above the exemption and 10% on the next THB 200,000, resulting in THB 27,500 before applicable credits or special rules.

Tax residency and non-resident individuals

Section 41 of the Revenue Code generally treats an individual present in Thailand for an aggregate of 180 days or more in a calendar year as a Thai tax resident. Thai-source income may be taxable regardless of where paid. Foreign-source income of residents may also be taxable when brought into Thailand under applicable rules.

Revenue Department Orders P.161/2566 and P.162/2566 address foreign-sourced income remitted into Thailand, including transitional treatment for income arising before 1 January 2024. The actual liability depends on the income year, remittance year, exemptions and treaty relief. Consult the official foreign-sourced income guide.

Is the non-resident tax rate always 15%?

No. The original article listed a blanket 15% rate on gross non-resident income. This is not a universal rule. The tax treatment varies by income category, payer, applicable withholding provision and tax treaty. Non-residents may be subject to progressive personal income tax on relevant employment income, while certain interest, dividends or other payments can have specific withholding rates. Consult the Revenue Code and Revenue Department personal income tax guidance.

Capital gains tax in Thailand

Thailand generally does not impose a separately named capital gains tax. Instead, taxable gains may be included within ordinary assessable income under Section 40 of the Revenue Code, subject to exemptions and specific rules. For example, gains from certain share transactions on the Stock Exchange of Thailand may qualify for exemption, while gains on unlisted shares or immovable property can be treated differently. Tax consequences for companies generally follow corporate income tax rules.

Therefore, the historical statement that Thailand has no separate capital gains tax does not mean all capital gains are tax-free.

Thailand corporate income tax rates

The general corporate income tax rate is 20% of taxable net profit for companies and juristic partnerships, subject to exemptions, tax holidays and special regimes. Qualifying small and medium enterprises (SMEs) may use reduced progressive rates.

Qualifying SME corporate tax schedule

For eligible companies with paid-up capital not exceeding THB 5 million and annual income from sales and services not exceeding THB 30 million, the published SME schedule is:

Eligibility and the relevant accounting period must be checked before applying this schedule. See the Revenue Department corporate income tax guide and official corporate tax rate rules (Thai).

Special corporate regimes

Special tax rates may apply to certain international banking facilities, international transport activities, foreign companies receiving Thai-source income and investment-promoted businesses. The historical article mentioned a 10% rate for specified international banking profits; this should not be treated as a general bank tax rate. BOI incentives and other preferential treatments depend on current approvals and statutory conditions.

Historical Thailand income tax rates for 2018-2019

The original 2018-2019 article presented the following progressive personal tax schedule. It is retained for reference; the same band structure is also shown above with official documentation.

Historical corporate income tax information

The original article reported a standard corporate rate of 20%, and a qualifying SME rate of 0% on the first THB 300,000, 15% on profits above THB 300,000 through THB 3 million, and 20% above THB 3 million. It also referred to a special 10% rate for certain international banking profits. Those special regimes require separate verification for the relevant period.

Historical non-resident income statement

The earlier article stated a flat 15% on non-resident gross income. This has been corrected above because there is no universal 15% rate for every type of non-resident personal income.

Relevant legal provisions and official sources

Thailand Revenue Code: The primary tax legislation governing personal and corporate income tax. Important provisions include:

• Section 40: Categories of assessable income, including employment, business and certain investment income.
• Section 41: Thai-source and foreign-source income rules and the 180-day residence test.
• Section 42: Statutory categories of exempt assessable income.
• Section 47: Personal allowances used to compute net taxable income.
• Section 48: Personal income tax calculation methods, including the progressive schedule and applicable alternative computation.
• Section 50: Withholding obligations for specified payments.

Official legal text and guidance: Revenue Code Chapter 3 - Income Tax; Revenue Code Sections 38-64; 2026 Revenue Department tax forms; and Thai Revenue Department.

Some English guidance pages are older than the latest amendments. For a filing or transaction, check the current Thai-language law, applicable Royal Decrees and Revenue Department announcements, and any double-taxation agreement.