One of the most common questions people ask when planning a move to Thailand, starting a business here, or working here is simple:
How much tax do you actually pay in Thailand?
The short answer is that it depends on who you are, where your income comes from, whether you are a Thai tax resident, and whether you are taxed as a company or as an individual. Thailand clearly separates taxation for private individuals and companies, and the rules become especially important if you receive income from abroad, own shares, take dividends, or sell services across borders. Thailand's Revenue Department classifies individuals as resident or non-resident, with the threshold set at more than 180 days in Thailand during a calendar year. A resident is generally taxed on Thai-source income and, in some cases, foreign-source income remitted into Thailand, while a non-resident is generally taxed only on Thai-source income.
Quick overview
If you want the simple version first, Thailand in 2026 broadly looks like this:
- Corporate income tax is normally 20% of net profit
- Personal income tax is progressive and goes up to 35%
- VAT is effectively 7% at the moment, and the reduced rate has been extended to 30 September 2026
- Dividend withholding tax is generally 10%
- Double taxation can often be reduced through tax treaties and foreign tax credits, but it must be assessed case by case
1. Tax for individuals in Thailand
When do you become taxable in Thailand?
Thailand starts with two main questions:
- Are you a resident or non-resident?
- Is the income Thai-source or foreign-source?
According to the Revenue Department, you are a resident if you stay in Thailand for more than 180 days in a calendar year. A resident is generally taxed on Thai-source income and on foreign-source income that is brought into Thailand. A non-resident is generally taxed only on income sourced in Thailand.
Personal income tax table in Thailand
Thailand uses progressive personal income tax rates. The Revenue Department's English filing guides set out the following bands:
| Annual net income | Tax rate |
|---|---|
| 0 to 150,000 THB | 0% |
| 150,001 to 300,000 THB | 5% |
| 300,001 to 500,000 THB | 10% |
| 500,001 to 750,000 THB | 15% |
| 750,001 to 1,000,000 THB | 20% |
| 1,000,001 to 2,000,000 THB | 25% |
| 2,000,001 to 5,000,000 THB | 30% |
| Over 5,000,000 THB | 35% |
How this works in practice for different people
Tourists do not pay Thai tax just because they are visiting Thailand. But if they actually earn Thai-source income, for example by performing work in Thailand, that income can still be taxable in Thailand even if payment comes from abroad. Thailand's Revenue Department states that income from work performed in Thailand or business carried on in Thailand is Thai-source income.
People who live and work in Thailand are generally taxed on their salary under the progressive rates above. If withholding tax has already been deducted by the employer, it is usually credited when the annual return is filed.
Pensioners need to consider two things at the same time: whether they are Thai tax residents and whether the pension comes from abroad. The Revenue Department's foreign-income guidance says that foreign-source income earned from 1 January 2024 onward can become taxable in Thailand if the person was a tax resident in the year the income was earned and the money is later remitted into Thailand. However, a tax treaty may change the outcome depending on the country and the type of income.
Private company owners who receive dividends from a Thai company will usually face 10% withholding tax. For Thai residents, dividends can in some cases be treated as final tax if they are left out of the normal personal income tax calculation, although that choice may affect credit options.
Digital nomads or people working for foreign employers from Thailand should be especially careful. If the work is physically carried out in Thailand, the Revenue Department's position on Thai-source income becomes very important. This is not just an immigration issue. It is also a tax issue.
2. Tax for companies in Thailand
Corporate income tax
The normal corporate income tax rate in Thailand is 20% of net profit. The Revenue Department states this clearly in its English corporate tax materials.
Common company taxes in Thailand
| Tax or charge | Normal rate |
|---|---|
| Corporate income tax | 20% of net profit |
| Dividend withholding tax | 10% |
| VAT | 7% until 30 Sep 2026 |
| Specific Business Tax for certain sectors | 0.1% to 3.0%, plus local tax surcharge |
The Revenue Department also notes that rates may vary depending on the type of taxpayer, and some smaller companies may qualify for special treatment, but that should always be verified against the current rules and the actual company profile before relying on it.
Dividend tax and profit extraction
For company owners, the key issue is often not only how profit is earned, but how it is taken out.
Dividend payments are generally subject to 10% withholding tax. The Revenue Department also states that foreign companies receiving certain income from Thailand may face withholding tax, and branch profit remittance can also trigger tax in some cases.
That means owners should think carefully about the difference between:
- Salary
- Dividends
- Management fees
- Overseas remittances
The tax result can differ significantly depending on the structure.
3. VAT in Thailand and cross-border VAT issues
Thailand uses VAT, which works broadly like value-added tax systems elsewhere. The Revenue Department says that businesses that regularly sell goods or provide services in Thailand and exceed 1.8 million THB in annual turnover generally become VAT-liable and must register.
VAT table for Thailand in 2026
| Question | Rule |
|---|---|
| Standard legal VAT rate | 10% |
| Current reduced VAT rate | 7% |
| Reduced rate valid until | 30 September 2026 |
| Registration threshold | 1.8 million THB per year |
| Exports of goods | 0% VAT |
| Certain services used outside Thailand | May qualify for 0% VAT if conditions are met |
The current 7% rate is a reduced rate that has been extended to 30 September 2026.
How VAT works across borders
This is where many businesses get confused.
- If a Thai company provides certain services that are used outside Thailand, 0% VAT may apply if the legal conditions are met.
- If a foreign provider of electronic services sells to non-VAT-registered customers in Thailand and exceeds 1.8 million THB, it generally must register for Thai VAT under the e-Service regime.
- If those services are sold to a VAT-registered Thai business, the treatment may instead follow reverse-charge style logic or Thai remittance rules depending on the service type and circumstances.
This is especially relevant for businesses involved in:
- Consulting
- Software
- Design
- Digital marketing
- Online subscriptions
- Cross-border service delivery
4. Foreign income from 2024 onward
This is one of the most important topics for expats, retirees, and internationally mobile business owners.
Thailand's Revenue Department has issued clear guidance stating that foreign-source income earned from 1 January 2024 onward can become taxable in Thailand if:
- The individual was a Thai tax resident in the year the income was earned, and
- The income is later brought into Thailand, whether in the same year or a later year.
At the same time, the Revenue Department also clarified that foreign income earned before 1 January 2024 and later remitted into Thailand is not subject to Thai tax under this newer interpretation.
This matters a lot for:
- Retirees
- Investors
- People receiving dividends or interest from abroad
- Remote workers
- Owners of foreign companies
5. Double taxation and tax treaties
Thailand has a broad network of double tax agreements, and the Revenue Department maintains a dedicated section for them. Tax treaties can be very important for:
- Pensions
- Dividends
- Salary income
- Business profits
- Interest
- Royalties
- Foreign tax credits
If tax has already been paid abroad, there may be ways to reduce or credit Thai tax, but the answer depends on the treaty and the type of income.
Examples of how this can affect different people
- A pensioner may be taxed differently depending on the treaty between Thailand and the country paying the pension.
- A company owner receiving foreign dividends may need to consider tax residence, remittance into Thailand, and treaty relief.
- A person living in Thailand while billing through a foreign company may need to analyze both personal tax and whether work performed in Thailand creates Thai-source income.
6. What is being planned for the future?
There are two developments worth watching.
First, Thailand has already moved ahead with top-up tax and global minimum tax rules for very large multinational groups. This does not usually affect ordinary SMEs, but it is important for larger international groups. Recent commentary indicates that secondary legislation and practical implementation details have still been evolving.
Second, Thailand's treatment of foreign-source income remitted into Thailand remains an area that many expats and advisors are watching closely. The core Revenue Department rule is already in force, but practical interpretation, treaty interaction, and possible future refinements remain highly relevant.
7. A practical summary
For individuals
- If you stay in Thailand more than 180 days, you are generally a tax resident
- If you work in Thailand, your income may be taxable here
- If you earn foreign income from 2024 onward and bring it into Thailand, it may become taxable here
- Tax treaties can change the result, especially for pensions, dividends, and international income
For companies
- Standard corporate income tax is 20%
- VAT is currently 7%
- Dividend withholding tax is generally 10%
- International services may trigger Thai VAT, e-Service VAT registration, or remittance obligations depending on the structure
How True Bizz can help
The difficult part in Thailand is rarely just the tax rate. The difficult part is understanding which rules apply to your specific situation.
That is especially true if you:
- Are a pensioner living in Thailand
- Own or run a Thai company
- Receive dividends
- Work in Thailand while being paid from abroad
- Sell services across borders
- Need help with accounting, VAT, payroll, tax compliance, or tax structuring
At True Bizz, we help clients look at the full picture: company tax, personal tax, VAT, dividends, accounting, tax residency, treaty issues, and how all of these work together in practice.
Final thoughts
Thailand can be tax-efficient in some cases, but it is not a country where you should guess.
Some people will pay less tax than they expected. Others will pay more because they misunderstood residence rules, foreign income rules, VAT, or dividend taxation. The difference usually comes down to structure and planning.
That is why getting the setup right at the beginning often saves both money and problems later.