Allowable Deduction

Standard deduction: 40% of the wages up to a maximum of 60,000
Personal deduction for income earner: 30,000
For spouse: 30,000
For each child (maximum of 3 children): 15,000
School allowance for each child studying in Thailand (maximum of 3 children): 2,000

Official Tax Table of Rates

Income*

Up to

Maximum Income For
Each Tax Rate

Tax
Rate

Accumulated
Tax

0 -

50,000

50,000

0%

0

50,000 -

100,000

50,000

5%

2,500

100,001 -

500,000

400,000

10%

42,500

500,001 -

1,000,000

500,000

20%

142,500

1,000,001 -

4,000,000

3,000,000

30%

1,042,500

4,000,001 -

over

 

37%

 

Example of Tax Due for a Single Person on Gross Income

Annual Gross
Income

Tax**

20,000

0

50,000

0

100,000

0

250,000

8,500

360,000

19,500

500,000

33,500

600,000

44,500

1,000,000

124,500

2,000,000

415,500

* In Baht after deductions.
** With personal and standard deductions calculated.

Tax Clearance Information

By virtue of a Notification of the Director-General of the Revenue Department, the regulation requiring foreigners to obtain a tax clearance certificate before exiting Thailand was canceled as of May 7, 1991. Prior to this announcement, foreigners leaving the country had to obtain a tax clearance certificate from the Revenue Department in Bangkok or from the Revenue Office in other main cities.

There are two exceptions to this ruling, where tax clearance certificates must still be processed:

    1. Foreigners who are liable for taxes due as assessed by the assessment official prior to or at the time of departing from Thailand.
    2. Foreigners who are responsible for filing income tax returns and paying taxes for juristic companies or partnerships established under a foreign law but doing business in Thailand.

Those who fall within these exceptions and fail to obtain a tax clearance will be denied permission to leave the country.

Documents Required in Applying for Tax Clearance:

• Valid Passport
• Alien Certificate (if any)
• Residence Certificate (if any)
• Work Permit (if any)
• Application Form (Form Por. 1)
• Letter of Guarantee (Form Por. 4)
• Tax return forms and evidence of tax payment (up to the past 5 years)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.