Thailand Income Tax Rates: 2017-2018 Personal and Corporate Tax Guide

A guide to Thailand's personal income tax brackets, taxation of non-residents, capital gains and corporate profits, with the original 2017-2018 tables and an explanation of the continuing legal framework.

Personal income tax rates for 2017-2018

Thailand applies progressive personal income tax to net taxable income, after applicable deductions and allowances. The following annual brackets appeared in the original article and are also the standard progressive brackets described in Revenue Department guidance; special measures can affect the final liability.

How the progressive brackets work

Each rate applies to the portion of taxable income within that band, not to the taxpayer's entire income. For example, the 5% rate applies only to taxable income above THB 150,000 and up to THB 300,000. A taxpayer's final assessment also depends on deductions, allowances, credits and any special computation rules.

Residents and non-residents: source and foreign income

Under section 41 of the Thai Revenue Code, a person staying in Thailand for 180 days or more in a tax year is generally treated as resident for the relevant income-tax rules. Thai-source income may be taxable regardless of residence. Foreign-source income received by a resident may also be taxable when remitted into Thailand, subject to the law, applicable transitional guidance, exemptions and tax treaties.

For foreign income earned from 1 January 2024 onward, Revenue Department guidance on remittances is particularly important. Foreign income earned before that date may receive different treatment under the relevant guidance. Residence, timing and nature of income must be assessed individually.

Historical non-resident table (2017-2018)

Important correction: The historical table's blanket 15% rate should not be treated as the general income-tax rate for every non-resident. Thailand has different withholding and assessment rules depending on the type of payment, and salary or other taxable income can be subject to progressive rates. Some specified payments to non-residents are subject to 15% withholding, subject to domestic exemptions and tax treaties.

Capital gains tax in Thailand

Thailand generally does not impose a separately named, comprehensive capital gains tax. Instead, taxable gains are ordinarily considered under the relevant personal income tax or corporate income tax rules. Certain gains on securities traded on the Stock Exchange of Thailand may qualify for exemptions, while gains on unlisted shares, land or other assets can be taxable depending on the taxpayer and transaction.

Section 40 classifies categories of assessable income; section 42 provides statutory exemptions. Property disposals can involve additional withholding tax, specific business tax, stamp duty or other transaction taxes where applicable. A statement that all capital gains are tax-free would be incorrect.

Corporate income tax for 2017-2018

The standard Thai corporate income tax rate was 20% of taxable net profit. Corporate tax generally applies to companies and juristic partnerships under the Revenue Code, subject to special regimes, incentives and treaty provisions.

Qualifying SME tax bands in the historical article

The historical SME schedule applied to qualifying companies or juristic partnerships with paid-up capital not exceeding THB 5 million and annual revenue from goods or services not exceeding THB 30 million, subject to statutory conditions and applicable tax-year measures.

Qualifying SME status and any subsequent changes to incentives must be checked for the tax year concerned. The 20% general corporate tax rate does not automatically apply to all categories of business.

Historical reduced rate for certain banking operations

The original article referred to a 10% rate for certain bank profits from lending to non-Thai residents using foreign-currency funds sourced abroad. This is a specialised historical measure, not a general banking tax rate. Its availability depends on the precise legislation and the accounting period; it should not be assumed to apply currently without confirmation.

Relevant Thai Revenue Code provisions

• Section 40: identifies categories of assessable income, including employment, business and certain investment-related receipts.
• Section 41: addresses taxation of income connected with Thailand, foreign-source income and the residence test.
• Section 42: sets out categories of income that are exempt from personal income tax.
• Section 47: provides for personal allowances and relevant deductions, as amended.
• Section 48: governs calculation of personal income tax, including progressive-rate calculations and relevant alternative computation rules.
• Section 50: addresses withholding of income tax at source for specified payments.
• Corporate income tax provisions: determine taxable net profit, permitted expenses and applicable tax rates for juristic entities, together with Royal Decrees and investment-promotion rules.

Filing and compliance

Individuals commonly file an annual personal income tax return, with the relevant form depending on income type. Employers and other payers may have withholding obligations. Companies generally file annual corporate income tax returns and, where applicable, half-year returns. Deadlines, e-filing extensions, exemptions and supporting records should be checked against the current Revenue Department calendar.

Official legislation and tax guidance

• Thailand Revenue Department - official English website
• Revenue Code - official Revenue Department resource
• Personal income tax guidance - Revenue Department
• Revenue Department tax information and guidance
• Revenue Department Thai-language website - latest announcements and forms

Editorial note: This article provides general information, not individual tax advice. Tax outcomes depend on the taxpayer's facts and the law applicable to the specific year.