Thailand Personal Income Tax (PIT): Rates, Filing (PND90/91) and Foreign Executives

In short

Under the Revenue Code, anyone who derives income from working or conducting business in Thailand, or from property located in Thailand, must pay personal income tax; a person staying in Thailand for a total of 180 days in a tax year is a tax resident (Section 41), and must file the previous year's assessable income on form PND90/91 within March of the following year (Section 56), while employment income is withheld monthly by the payer (Section 50).

1. Who must pay? Residents and non-residents (Section 41)

The Revenue Code determines tax liability along two lines: the "source of income" and "whether the person is a tax resident."

Thai-source income: assessable income derived from work or business conducted in Thailand, or from an employer's business in Thailand, or from property located in Thailand, is taxable in Thailand regardless of whether the money is paid within or outside Thailand (Section 41).
Foreign-source income: income derived by a person residing in Thailand from work or business conducted abroad or from property located abroad is subject to personal income tax in the year in which that income is brought into Thailand (Section 41).
Residency test: any person staying in Thailand for one or several periods totaling one hundred eighty days in any tax year is deemed a person residing in Thailand (Section 41).

Accordingly, a non-resident (fewer than 180 days in a year) is in principle taxed only on Thai-source income; a resident is taxed on Thai-source income and, in addition, on foreign-source income brought into Thailand.

2. The eight categories of assessable income (Section 40)

Section 40 divides assessable income (including amounts representing tax paid by the payer or another person on behalf of such income) into eight categories (Section 40(1) through (8)). Several common categories are:

Section 40(1) — income from employment: salary, wages, bonus, allowances of various kinds, pension, the calculated value of occupying a house provided by an employer without paying rent, amounts paid by an employer to discharge a debt for which the employee is liable, and the like (Section 40).
Section 40(2) — income from duties, position, or from accepting work: various fees, brokerage fees, discounts, meeting allowances, compensation, and the like (directors' fees and consultant fees commonly fall here; Section 40).
Section 40(3): goodwill value, copyright or other right value, annuities, and the like (Section 40).
Section 40(4): interest, dividends, profit shares, and similar returns (Section 40).
Section 40(5) through (8): the remaining categories of income (for example, the sale of immovable property under Section 40(8); Section 48 also refers to Section 40(5)(6)(7)(8)).

3. Exempt income (Section 42)

Section 42 lists a number of categories that are not included in income and are exempt from tax, for example:

allowances and transportation expenses genuinely and necessarily paid out for the performance of one's duties (Section 42);
income received by inheritance, and compensation or damages received under insurance (Section 42);
qualifying interest on withdrawal-on-demand savings deposits where the total for the year does not exceed ten thousand baht (this ten-thousand-baht threshold is expressly stated in the provision, Section 42);
income otherwise exempted by Ministerial Regulation (Section 42).

4. Deductions and allowances (Section 47)

Assessable income is first reduced by necessary expenses under Sections 42 bis through 46 as referred to by Section 47 (the specific deduction amounts are set by the relevant provisions/Royal Decrees; the exact figures are subject to the official rules, and our firm can help confirm them), and then benefits from the following reduction allowances under Section 47:

Self: 60,000 baht; spouse: 60,000 baht (Section 47).
Children: 30,000 baht each; for the second child onwards born in or after the year 2561 (B.E.), an additional 30,000 baht each; adopted children 30,000 baht each, up to a total of three (Section 47).
Life insurance premiums: as actually paid but not exceeding 10,000 baht (the policy term must be at least ten years and the insurer must be a company operating in Thailand, Section 47).
Provident Fund contributions: as actually paid but not exceeding 10,000 baht (Section 47).
Interest on an owner-occupied home loan: as actually paid but not exceeding 10,000 baht (Section 47).

5. Rates and calculation (Section 48)

A resident individual's net assessable income is taxed at progressive rates (Section 48). However, the specific brackets of the progressive rates are set by Royal Decree, and this article does not list specific figures — the exact figures are subject to the official rules (our firm can help confirm them).

For certain income derived by a non-resident (such as Section 40(2), (3), (4)), Section 48 provides for calculation at 15% (this rate is expressly stated in the provision).

6. Annual filing: PND90 / PND91 (Sections 56 and 57)

Section 56 requires that, except for minors and persons whom a court has declared to be lacking or quasi-lacking in capacity, everyone whose income in the preceding tax year exceeded the statutory threshold must file the previous year's income within the month of March each year, using the form prescribed by the Director-General. The thresholds are (expressly stated in the provision):

no spouse, with annual assessable income exceeding 60,000 baht;
no spouse, with income of only the single category under Section 40(1) exceeding 120,000 baht;
with a spouse, with annual assessable income exceeding 120,000 baht;
with a spouse, with income of only the single category under Section 40(1) exceeding 220,000 baht (all of the above per Section 56).

The annual individual returns are PND90 (covering multiple categories of income) and PND91 (employment income only), both being forms prescribed by the Director-General under Section 56. If the taxpayer is a minor, a person declared by a court to be lacking or quasi-lacking in capacity, or a person residing abroad, then the legal representative, guardian, custodian, or manager of the business that generates such income shall, as a representative, carry out the filing and payment obligations (Section 57).

7. Monthly payroll withholding: PND1 (Section 50)

The party paying employment income (the employer) must withhold personal income tax at the time of payment under Section 50 and file it monthly (that is, the PND1 monthly withholding return). This monthly withholding connects with the annual PND90/91 filing: at year-end reconciliation, the tax already withheld can be credited against the tax payable.

Note: the social security (SSO) contribution rate related to payroll is 5%, which is handled separately from personal income tax and follows its own filing process.

Residency test 180 days

A foreign executive who spends a cumulative 180 days in Thailand within a tax year is a tax resident (Section 41).

Thai-source income Section 40(1)(2)

Salary and directors' fees earned in Thailand are taxable in Thailand whether paid inside or outside the country; a non-resident is taxed on certain income at 15% (Section 41, Section 48).

Filing may be done by a representative Section 57

If an executive resides abroad, the manager of the business that generates such income, among others, files and pays tax as a representative (Section 57).

⚠️ Note

The specific brackets of the progressive rates, the amounts of necessary-expense deductions, and the like are set by Royal Decree/Ministerial Regulation, and individual circumstances vary, so each case must be confirmed individually — our firm can assist with payroll withholding (PND1) and annual PND90/91 filing.

FAQ

How many days in Thailand make you a tax resident? Is foreign income taxable?

Under Section 41, staying in Thailand for a cumulative one hundred eighty days in a tax year makes you a Thai tax resident; a resident is taxed in Thailand on foreign-source income only in the year that income is brought into Thailand, while a non-resident is in principle taxed only on Thai-source income. Thai-source income is taxable in Thailand whether the money is paid inside or outside the country.

When is personal income tax filed? Which form is used?

Under Section 56, you must file the preceding tax year's income within March of the following year (where income exceeds the statutory threshold, such as over 60,000 baht for a person with no spouse). The annual individual return is PND90 (covering multiple categories of income) or PND91 (employment income only), both being forms prescribed by the Director-General under Section 56.

Who withholds personal income tax on a foreign executive's Thai salary?

Under Section 50, the employer paying employment income must withhold personal income tax at the time of payment and file it monthly (PND1); at year-end reconciliation it can be credited against the tax payable. Under Section 48, certain income derived by a non-resident (such as Section 40(2)) is calculated at 15%. If the executive resides abroad, the manager of the business that generates such income may also file as a representative (Section 57).

What deductions and allowances can an individual claim?

Under Section 47: 60,000 baht each for self and spouse, 30,000 baht per child, and up to 10,000 baht each for life insurance premiums, provident fund contributions, and owner-occupied home loan interest, among others; assessable income is also first reduced by necessary expenses under Sections 42 bis through 46 as referred to by Section 47 (the exact amounts are subject to the official rules). In addition, Section 42 lists exempt categories such as inheritance income, insurance compensation, and qualifying savings interest.