This Thailand tax guide covers the rules in force from 1 January 2026. Personal income tax runs 0–35% in eight bands, but foreign income is taxed only when remitted to Thailand — and holders of the 10-year LTR visa remit foreign income tax-free under Royal Decree 743. Corporate tax is 20%, VAT is held at 7% (to 30 September 2026), and there is no wealth tax and no estate tax below THB 100 million (~$3.0m). A draft decree easing the 2024 remittance rule remains unenacted — the key thing to watch.
Introduction
Thailand is Southeast Asia’s second-largest economy — 66 million people, a constitutional monarchy with a turbulent parliamentary politics, never colonised, and a founding ASEAN member. Bangkok is a genuine global city; Chiang Mai, Phuket and the islands anchor one of the world’s largest expat and digital-nomad populations. The legal system is civil-law codified, English is widely used in business but not in the bureaucracy, the climate is tropical, and the cost of living remains a fraction of Western levels — a comfortable upper-middle-class life costs less than rent alone in London or San Francisco. The baht trades around THB 33 to the US dollar.
For internationally-mobile expats and investors, this Thailand tax guide matters because the system taxes foreign income on a remittance basis — what you never bring in is never taxed — and because the Board of Investment’s Long-Term Resident (LTR) visa turns even remitted foreign income tax-free for qualifying wealthy pensioners, remote professionals and investors. The landscape shifted on 1 January 2024, when Departmental Instruction Por. 161/2566 made foreign income taxable whenever remitted (not just same-year); a relaxation exempting income remitted in the year earned or the following year has been drafted but, as of mid-2026, has not been enacted.
Direct Taxes
Thai tax residents — anyone present 180 days or more in a calendar year — are taxed on all Thai-source income plus foreign-source income to the extent remitted to Thailand; non-residents pay only on Thai-source income. Progressivity runs through eight bands from 0% to 35%. A company is subject to Thai corporate tax if incorporated in Thailand (worldwide) or carrying on business there. The signature concepts for foreign residents are the remittance basis and the LTR visa exemption — together they determine whether an expat’s offshore earnings face 0% or up to 35%.
Personal income tax (2026 bands)
| Chargeable income (THB) | Rate |
|---|---|
| 0 – 150,000 (~$0 – 4,500) | 0% |
| 150,001 – 300,000 (~$4,500 – 9,000) | 5% |
| 300,001 – 500,000 (~$9,000 – 15,000) | 10% |
| 500,001 – 750,000 (~$15,000 – 22,500) | 15% |
| 750,001 – 1,000,000 (~$22,500 – 30,000) | 20% |
| 1,000,001 – 2,000,000 (~$30,000 – 60,100) | 25% |
| 2,000,001 – 5,000,000 (~$60,100 – 150,200) | 30% |
| Over 5,000,000 (~$150,200) | 35% |
These bands have been stable since 2017; generous deductions (personal allowances, expense deductions, retirement funds, insurance) mean effective rates sit well below the headline. The foreign-income overlay matters more than the bands: income earned before 2024 remains remittable tax-free with proof (Por. 162/2566); income earned from 2024 onward is taxable in the year remitted, whatever the delay; and LTR visa holders (Wealthy Global Citizen, Wealthy Pensioner, Work-from-Thailand Professional) remit foreign income entirely exempt under Royal Decree 743, while LTR Highly-Skilled Professionals pay a flat 17% on Thai employment income.
Corporate income tax
| Item | Rate |
|---|---|
| Standard corporate income tax | 20% |
| SME tiers (paid-in capital ≤ THB 5m, revenue ≤ THB 30m) — first THB 300,000 / to 3m / above | 0% / 15% / 20% |
| BOI-promoted activities | 0% holidays up to 8+ years |
| Pillar Two top-up tax — MNE groups ≥ €750m (~$855m), from FY starting 1 January 2025 | top-up to 15% |
| Withholding — dividends to individuals/non-residents | 10% final |
| Withholding — interest (individuals, final) / royalties to non-residents | 15% / 15% |
The 20% rate has held since 2013. The Top-up Tax Emergency Decree B.E. 2567 (promulgated 26 December 2024) implements OECD Pillar Two from fiscal 2025, clawing back BOI holiday benefits for the largest groups — smaller BOI-promoted companies keep their incentives. Losses carry forward five years; there is no participation exemption as such, but Thai inter-company dividends can be 50–100% excluded subject to holding conditions, and Thailand’s ~61 tax treaties reduce withholding both ways.
Social security and health contributions
| Contribution | Employee | Employer | Self-employed |
|---|---|---|---|
| Social Security Fund (SSF) | 5% | 5% | Voluntary (s.39/s.40 schemes, fixed amounts) |
| Monthly cap (wage base THB 15,000, ~$450) | THB 750 (~$23) | THB 750 (~$23) | — |
The wage-base ceiling of THB 15,000/month has stood since 1995, so the maximum charge is trivially small at any professional salary; a legislated schedule to raise the ceiling in stages (to THB 17,500 and beyond) has been repeatedly deferred — confirm current status. Contributions buy public healthcare, disability, maternity and a modest pension. The government adds 2.75%. There is no separate health levy; most expats carry private cover.
Indirect Taxes
VAT is the main indirect tax, on a standard credit-invoice model with a THB 1.8 million (~$54,000) registration threshold. Thailand is not bound by any supranational VAT framework; rates are set domestically by royal decree.
Value-added tax (VAT)
| Rate | Applies to (examples) |
|---|---|
| 7% (reduced by decree, extended to 30 September 2026; statutory rate 10%) | Most goods and services |
| 0% (zero) | Exports, international transport, goods sold within customs free zones |
| Exempt | Unprocessed agricultural products, education, healthcare, domestic transport, small businesses under threshold |
Excise and other indirect taxes
| Tax | Notes |
|---|---|
| Excise duties | Alcohol, tobacco, fuel, vehicles, sugary drinks — substantial on imported cars and wine |
| Specific business tax (SBT) | 3.3% (incl. municipal) on property sales within 5 years of purchase, banking-type income |
| Property transfer fee | 2% of appraised value (periodic stimulus reductions on qualifying homes) |
| Stamp duty | 0.5% on property sales where SBT does not apply; various instruments |
| Customs duties | ASEAN free-trade rates within region; high on select consumer imports |
Other Taxes Worth Knowing
| Tax | Thailand treatment |
|---|---|
| Capital gains tax | No separate CGT — gains are ordinary income; SET-listed shares sold on-exchange: exempt for individuals |
| Capital gains — foreign portfolio (resident individual) | Taxable only if remitted; LTR holders: exempt even when remitted |
| Dividends (resident individual, Thai company) | 10% final withholding (or bands with credit) |
| Interest (resident individual) | 15% final withholding |
| Rental income | Progressive bands after 10–30% standard expense deduction |
| Wealth / net worth tax | None |
| Inheritance / estate tax | Only above THB 100m (~$3.0m) per heir: 5% descendants/ascendants, 10% others; spouses exempt (since 2016) |
| Gift tax | Exempt to THB 20m (~$601,000)/year from parents, children, spouse (THB 10m others/ceremonial); excess at 5% final |
| Land & building tax (annual) | Residential 0.02%–0.1% (primary-home exemptions); commercial 0.3%–0.7%; vacant land up to 1.2% escalating |
| Exit tax | None |
For an expat investor the effective picture is driven by remittance planning: SET-listed Thai equities are CGT-free, Thai dividends cost a flat 10%, and a foreign portfolio’s income and gains are taxed only on entry to Thailand — at 0% for LTR-privileged categories. The inheritance tax bites only the largest estates, and the annual property tax on an owner-occupied condo is negligible.
Disadvantages & Risks
The dominant risk is rule instability. The 2024 remittance change arrived by departmental order, not statute, upending decades of practice with months of notice; the promised two-year remittance exemption has sat in draft through cabinet turmoil — including a prime-ministerial dismissal — and may be enacted, amended or abandoned. Planning built on today’s interpretation needs slack for tomorrow’s. Political volatility is structural: repeated coups (most recently 2014), court-driven government changes and street politics rarely touch daily life but do touch policy continuity. Thailand is not on the FATF or EU lists, and its treaty network (~61 DTTs) is solid, but Revenue Department guidance often appears first in Thai and enforcement practice varies by office.
Practical frictions follow. Foreign ownership restrictions bar foreigners from owning land (condos capped at 49% of a building; leaseholds and company workarounds carry legal risk). Banking and TIN registration for tax-paying expats can be bureaucratic, and the interaction of visa status, remittances and bank reporting (Thailand joined CRS exchanges in 2023) is still settling. The baht is managed but not immune to swings, household debt is high, growth has lagged regional peers, and the sheer distance from Western markets is real. None of this erodes the core proposition — but it rewards residents who keep documentation of income vintages, remittance dates and visa privileges meticulous.
Strategy & Ideal Profile
The optimal structure for most foreign residents is not a structure at all but a sequencing discipline: hold wealth offshore, document pre-2024 capital (remittable tax-free forever under Por. 162/2566), and route new foreign earnings through the LTR exemption if eligible. The LTR visa is the centrepiece — 10 years, one-stop immigration, and Royal Decree 743’s blanket exemption on remitted foreign income for Wealthy Global Citizens (investment/asset tests), Wealthy Pensioners (US$80,000 passive income, halved with Thai investment) and Work-from-Thailand Professionals (remote employees of substantial foreign firms) — confirm current BOI criteria, which were eased in 2025. Without LTR, a resident still controls timing: remit sparingly, live off pre-2024 capital, and if the draft two-year exemption is enacted, remit fresh income within its window.
Who it suits: retirees — a Wealthy Pensioner LTR turns foreign pensions and portfolio drawdowns into tax-free remittances, in a country whose cost of living stretches them; remote workers and founders on LTR or DTV visas paying nothing on offshore earnings kept offshore; investors and traders using the SET exemption locally and remittance control globally; regional entrepreneurs using BOI promotion (tax holidays, 100% foreign ownership carve-outs) for genuine operations. Tax residency is mechanical — 180 days — so part-year planning around first and final years is straightforward.
Who it does not suit: high earners with Thai-source income above THB 5m (~$150,200), who face 35% with no special regime (unless LTR-HSP at 17% applies); anyone needing certainty — the remittance framework has changed once by administrative order and can change again; buyers wanting freehold land; and US citizens gain little incrementally, since the IRS taxes them regardless (though the US–Thailand treaty and foreign tax credits mesh adequately). The LTR exemption has no sunset but is decree-based — the same instrument that could someday narrow it.
FAQ
Is Thailand a tax haven?
No. It is a normal-rate jurisdiction (20% corporate, up to 35% personal, 7% VAT) whose remittance basis and LTR visa exemptions produce low effective taxation for foreign residents who keep income offshore. Thailand exchanges information under CRS (from 2023) and is on no FATF or EU list.
What is the 180-day rule in Thailand?
Anyone present in Thailand for 180 days or more in a calendar year is a Thai tax resident for that year. Residence triggers taxation of foreign-source income on the remittance basis; below 180 days, only Thai-source income is taxable. Days are counted per calendar year with no averaging.
How does Thailand tax foreign income in 2026?
Foreign income earned while tax-resident from 2024 onward is taxable when remitted to Thailand, whenever that happens (Por. 161/2566). Income and savings from before 2024 remain remittable tax-free with documentation (Por. 162/2566). A draft decree exempting income remitted in the year earned or the following year has been announced but is not yet law — check its status before relying on it.
What are the LTR visa tax benefits?
Under Royal Decree 743, LTR holders in the Wealthy Global Citizen, Wealthy Pensioner and Work-from-Thailand Professional categories pay no Thai tax on foreign-source income remitted to Thailand. Highly-Skilled Professionals instead get a flat 17% on Thai employment income. Thai-source income of other kinds remains taxable normally.
Does Thailand tax capital gains?
There is no separate capital gains tax — gains are ordinary income. Individuals selling SET-listed shares on-exchange are exempt. Foreign gains follow the remittance rules: taxable when brought in (unless LTR-exempt), untaxed while kept offshore. Property sales bear transactional taxes (SBT or stamp duty, transfer fee, withholding) rather than CGT.
Is there inheritance or wealth tax in Thailand?
There is no wealth tax. Inheritance tax applies only to amounts an heir receives above THB 100 million (~$3.0m) from one testator: 5% for descendants and ascendants, 10% for others — surviving spouses are fully exempt. Gifts within family are exempt to THB 20 million (~$601,000) a year, with a 5% final tax above.
How are dividends taxed for an expat in Thailand?
Thai dividends bear a 10% final withholding — most investors let that stand rather than aggregate at band rates. Foreign dividends are taxable only if remitted to Thailand; LTR-privileged holders remit them tax-free, and others can defer by keeping them offshore (subject to the unenacted two-year-window reform).
Sources
All figures should be checked against the primary government sources below.
- Revenue Department of Thailand — PIT, CIT, VAT, withholding, remittance orders Por. 161/162/2566 — rd.go.th
- Thailand Board of Investment — LTR visa categories and tax privileges (Royal Decree 743) — ltr.boi.go.th
- Social Security Office — contribution rates and wage ceiling — sso.go.th
- Royal Thai Government Gazette — Top-up Tax Emergency Decree B.E. 2567, VAT rate decrees — ratchakitcha.soc.go.th
- Bank of Thailand — THB/USD reference rates used for conversions — bot.or.th
USD figures are indicative conversions at ~1 USD = 33 THB (Bank of Thailand reference, early July 2026) and rounded.
Last verified: 5 July 2026.
This is general information, not personal tax or legal advice. Tax outcomes depend on your specific facts; consult a qualified Thailand tax adviser before acting.
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