Do you need to pay tax in Thailand? Everything you need to know in 2025

Disclaimer: This article provides general information on Thai taxation for foreigners. It is not professional tax advice. Every individual’s situation is different depending on home country laws and personal circumstances. Consult a tax professional for advice tailored to your case.

Before we proceed, we want to emphasise that tax laws are always changing both in Thailand, and in your home country. You must consult a tax professional in each country you are seeking tax advice.

This factual guide covers the key points you need to know about personal income tax in Thailand as of 2025 – including tax residency, what income is taxable, new rules on foreign income, crypto tax, corporate taxes, double tax treaties, and practical steps to help you stay compliant.

Are you a tax resident?

Establishing if you are a tax resident in Thailand or not is simple. If you spend 183+ days in Thailand during the tax year, you are technically a tax resident and potentially liable to pay taxes. This does not mean you owe any taxes. If you stay less than 183 days (even if you make multiple visits), you are a non-resident for tax purposes.

Tax Residents (≥183 days in-country): Tax residents are potentially liable to pay Thai tax on both income earned in Thailand and certain income from abroad (we’ll explain the foreign income rules below).

Non-Residents (<183 days in-country): If you are not a Thai tax resident, you are generally only subject to Thai tax on income sourced within Thailand. In other words, if you earn money from Thai sources (such as a Thai job, business, or property rental) you must pay Thai tax on that income.

Tax residency is separate from immigration or visa status. Even if you are on a tourist visa or other short-term visa, if you end up living in Thailand for 183 days or more in a year, you become a tax resident for that year. Many people don’t realize that crossing the 183-day threshold triggers tax residency. This does not automatically mean you will owe Thai tax, but it does mean you fall under Thai tax rules and should evaluate your filing obligations.

Income tax rates

Thailand’s personal income tax system is progressive, meaning higher incomes are taxed at higher rates. Both residents and non-residents pay the same tax rates on any taxable income in Thailand. As of 2025, the tax rates range from 0% to 35%.

Net income up to THB 150,000 is tax-free (0%).

What income is subject to Thai taxes?

Thai-Sourced Income:
Any income you earn within Thailand is taxable in Thailand, regardless of whether you are a resident or not. This includes salary from a Thai employer, income from a business or freelance work performed in Thailand, rental income from property in Thailand, etc. If you are working for a Thai company or have a Thai employer, typically taxes will be withheld from your paycheck. If you are self-employed or running a business, you are responsible for reporting and paying taxes on that income.

Foreign-Sourced Income (for Residents):
If you are a Thai tax resident, income you earn from abroad may also become taxable in Thailand if you bring that money into Thailand. The specifics of this have changed in January 2024 and we are expecting to see further changes (see the next section). If you are a resident and have income from overseas (for example, foreign salary, investments, or pensions), whether Thailand taxes it depends on timing, the current remittance rules and double taxation treaties. Non-residents generally do not pay Thai tax on foreign income that never touches Thailand.

Foreign income remittance

One area that has caused a lot of confusion for expats is how foreign income is taxed in Thailand. This refers to money you earn abroad (salary from a foreign employer, overseas business profits, investment income, etc.) and then remit (bring into Thailand). The rules changed recently:

Old rule (Pre-2024):
Prior to 2024, Thailand used a “remittance year” rule. If you were a Thai tax resident, foreign-sourced income was taxable in Thailand only if you brought it into Thailand in the same calendar year that you earned it. If you kept the money abroad for the year and only transferred it into Thailand later (in a subsequent year), it was not taxed by Thailand. In practice, many expatriates used this rule to legally avoid Thai tax on foreign income by waiting to remit money after a year or more.

New Rule (2024 Onward):
In late 2023, the Thai Revenue Department announced a significant change. From January 1, 2024, Thai tax residents are taxable on any foreign income they bring into Thailand, regardless of when that income was earned. In other words, if you earn income abroad in 2024 (or later) and at any point transfer it into Thailand, that remittance will be considered taxable income in Thailand, even if the money was earned in an earlier year. The only exception made was that income earned before 2024 is grandfathered under the old rule – if you earned money prior to 2024, you can still bring it into Thailand without Thai tax, even after 2024.

Under the new rule, Thai tax residents are effectively taxed on worldwide income (to the extent they remit it to Thailand), similar to how many other countries operate. This was a big change that has impacted foreigners and Thai nationals with overseas earnings. For example, if you’re a tax resident in 2025 and you receive a pension from abroad or profits from an overseas investment, as soon as you transfer those funds into your Thai bank account or otherwise bring them into Thailand, that amount should be reported on your Thai tax return and may be subject to Thai income tax.

Update in 2025 – Possible Adjustment:
The 2024 rule change led to concerns and some unintended effects (many kept their money offshore to avoid Thai tax). In 2025, the Thai government indicated plans to adjust the foreign income rule to encourage people to remit funds. The proposal under consideration would allow foreign income to be brought into Thailand within 12 months of being earned without tax. Income remitted after that 12-month window would be taxed. In simple terms, if this change is implemented, it would be almost the reverse of the old rule: you’d have a one-year grace period to transfer your foreign earnings to Thailand tax-free, but if you wait longer than a year, Thailand would tax it. As of 2025, this new decree is still being drafted and it’s not yet law. It’s also unclear if it will apply retroactively to 2024 income or how exactly it will treat foreigners vs Thai citizens.

Bottom line for bringing foreign funds to Thailand: If you are a foreigner in Thailand with income from abroad:

• Keep an eye on the latest rules. The taxation of foreign income is evolving. Always check the current Revenue Department guidelines or consult a tax advisor each year.
• For now (2024 rules): Assume that if you are a tax resident and you remit overseas income to Thailand, you’ll need to report it and potentially pay Thai tax on it. Plan the timing of moving your money accordingly and work with any double tax treaties you may fall under.
• If you stay under 180 days (non-resident): You don’t need to worry about Thai tax on your foreign income, as long as it’s not from Thai sources. The foreign remittance rules only apply if you are a Thai tax resident.

Bitcoin and digital assets

As of 2025, Thailand has updated its tax approach to Bitcoin and digital assets, offering a huge incentive for enthusiasts to onshore their assets and take advantage of tax breaks until 2029. We are awaiting more details, but here’s what we know:

General tax treatment:
In principle, profits from digital asset trading or investing are considered a form of capital gains (investment income). For an individual Thai tax resident, these profits would normally be added to your income and taxed at the progressive personal income tax rates (up to 35%). If a company in Thailand earns crypto income, it would be subject to corporate income tax (typically 20%). There was previously talk of a 15% withholding tax on certain crypto transactions for foreign investors, which caused confusion, but the approach has shifted with new policies.

VAT Exemption:
The government has exempted cryptocurrency trades from the 7% Value Added Tax (VAT). This means buying or selling digital assets in Thailand isn’t subject to VAT, which removes an extra tax burden and encourages crypto commerce.

2025–2029 tax break:
The big news is that Thailand introduced a five-year tax exemption on crypto capital gains for certain investments. From 2025 through 2029, any gains from selling or trading cryptocurrencies will be exempt from personal income tax, provided the transactions are conducted on authorized Thai exchanges or platforms regulated in Thailand. This is a temporary incentive to encourage crypto investors to use Thai exchanges and to bolster the country’s digital asset sector. In practice, if you (resident or non-resident) trade crypto on a Thai SEC-licensed exchange, any profit you make on those trades is tax-free in Thailand during this period.

The crypto tax exemption applies only to trades on locally licensed exchanges/brokers. If you trade on overseas exchanges or engage in private crypto transactions, those gains might not qualify for the exemption and would fall under normal tax rules (taxable if you are a resident and bring the money into Thailand). Also, this is a time-limited policy; unless extended, normal taxation of crypto gains will resume in 2030. Always keep records of your crypto transactions and stay updated with the rules each year, because crypto regulations can change rapidly.

In summary, as of 2025 Thailand is very crypto-friendly from a tax perspective if you use Thai platforms. Foreigners in Thailand who invest in crypto should take note: you might not face any Thai tax on your crypto profits right now, but be sure to follow the conditions (use Thai exchanges) and be mindful of what happens after the tax break period.

Business and corporate taxes

While this article focuses on personal income tax, it’s worth briefly mentioning corporate and business taxes in case you’re doing business in Thailand:

Corporate Income Tax (CIT): The standard corporate tax rate in Thailand is 20% on net profits. This applies to companies incorporated in Thailand (including those owned by foreigners). Small businesses meeting certain conditions may enjoy lower rates on initial portions of profit, but 20% is the general rate for most firms. If you’re a foreigner running a Thai limited company or startup, the company will pay CIT on its taxable profits. Dividends distributed to shareholders are generally subject to a 10% withholding tax.

Value Added Tax (VAT): Thailand imposes a VAT of 7% on the sale of most goods and services. Businesses that have sales above a certain threshold must register for VAT and charge it to their customers. Some sectors (like basic agriculture, healthcare, and education) are exempt or zero-rated. If you’re an entrepreneur or freelancer providing services in Thailand, you may need to consider VAT in your pricing and invoices if applicable.

Other Taxes: There are other business-related taxes (e.g., specific business tax for certain industries, stamp duties, property tax if owning land/buildings, etc.), but these depend on the nature of your activities. For foreigners, one relevant area might be property and land taxes if you invest in real estate (Thailand has a land and building tax, and transfer fees when selling property). Also, employers and employees in Thailand contribute to social security – if you as a foreigner are employed by a Thai company, you’ll see a deduction (currently 5% of salary, capped at a low maximum) for social security.

In short, if you have a business presence in Thailand, you will encounter the local corporate tax regime. Ensure you get proper accounting and legal advice.

Double tax treaties and multiple tax residencies

Many foreigners in Thailand maintain ties to their home countries or other countries, which raises the question of double taxation. Can you be taxed in both Thailand and your home country on the same income? Potentially yes, but Double Taxation Agreements (DTAs) come into play.

Thailand has tax treaties with many countries (over 60), including the UK, many European nations, Australia, Canada, Japan, China, and others. (The United States also has a tax treaty with Thailand, though unique U.S. tax rules still apply – more on that shortly.) These treaties are designed to prevent you from having to pay tax twice on the same income and to determine which country gets to tax certain types of income.

Here are a few general points on how double tax treaties work and what you should know:

Residency Tie-Breaker: It’s possible to be considered a tax resident of two countries at the same time (for example, you meet Thailand’s 180-day rule and you also meet your home country’s residency criteria). Tax treaties have tie-breaker rules (like where your permanent home is, or where your center of vital interests lies) to decide which country treats you as a resident for treaty purposes. This can affect which country gets primary taxing rights.

Taxing Rights on Various Income Types: Treaties usually specify which country can tax certain types of income. For example, employment income, business profits, and pensions might be taxable only in the resident country or the source country depending on the treaty article. Dividends, interest, and royalties often can be taxed by both countries but with limits on the rate of tax at source. Real estate income is typically taxed where the property is located.

Foreign Tax Credits: In practice, if you pay tax in one country, you often can claim a tax credit in the other country for the tax already paid. Thailand’s treaties and domestic laws generally allow a credit for foreign taxes on the same income, up to the amount of Thai tax that would be due. For example, if you paid tax on a salary in your home country, and you owe Thai tax on that same income, Thailand would let you deduct the foreign tax from the Thai tax bill (so you pay whichever tax is higher, not both summed). The exact mechanism depends on the treaty and local laws.

US Citizens Example: The United States taxes its citizens on worldwide income no matter where they live (citizenship-based taxation). If you’re an American residing in Thailand, you’ll likely be filing taxes in both countries. The US-Thailand tax treaty helps somewhat – for instance, it prevents certain types of income from being taxed twice – but it doesn’t override the U.S. requirement to file taxes. Americans usually rely on provisions like the Foreign Earned Income Exclusion (which lets you exclude a chunk of your foreign salary) or the Foreign Tax Credit (which credits taxes paid to Thailand) to avoid double paying. So if you’re from the US (or another country with similar rules), be extra mindful of both systems.

Every Country is Different: Each country has its own tax residency rules and each treaty has unique terms. For example, a British person who is non-resident in the UK might not owe UK tax on foreign income, whereas a US person will. Some countries have higher tax rates than Thailand, some lower – this can influence whether you end up paying any additional tax when you file both places. Always check the specific treaty or seek advice for your nationality.

Key takeaway: Being liable for Thai tax does not exempt you from your home country’s taxes, and vice versa. You might have to file tax returns in multiple countries. The good news is treaties and foreign tax credit systems usually prevent true double taxation (you shouldn’t pay the full amount twice), but you might still have to go through the process of declaring income in both places. It’s wise to consult a cross-border tax expert if you have significant income or assets, to optimize where you pay tax and ensure you’re in compliance everywhere.

Practical Steps for Foreigners to Stay Compliant with Thai Tax

Navigating taxes can be daunting, but a few practical steps can help you stay on the right side of the law and avoid unnecessary tax bills:

1. Track your days in Thailand: Keep a record of how many days you are physically present in Thailand each calendar year. This determines whether you are a tax resident (≥180 days) or not. If you approach the 180-day mark, understand that you’ll likely be considered a tax resident for that year and have additional obligations.
2. Register for a Tax ID (if needed): If you become a tax resident or if you earn any income in Thailand, you should obtain a Tax Identification Number (TIN) from the Thai Revenue Department. Many foreigners get one automatically if they work for a Thai employer (as the employer withholds tax and reports it). If you’re self-employed or have only foreign income, you may need to apply for a TIN and file your own tax returns.
3. File your Thai tax return ontTime: The Thai personal income tax year is the calendar year (Jan 1 – Dec 31). Tax returns for the year are typically due by March 31 of the following year (for online filing; if filing on paper it may be mid-March). Even if you think you owe no tax, if you had any income to declare (including qualifying foreign income you remitted), you should file a return to stay compliant. Late filing or failing to file can result in penalties.
4. Declare all Thai sourced income: Make sure you report income from any work or business you do in Thailand. If you’re an employee, your employer will usually handle monthly withholdings, but you still must include that income on your annual tax return. If you’re freelancing or running a small business, keep invoices and receipts and consider hiring an accountant – you’ll need to report that income and you can also deduct allowable expenses.
5. Manage foreign income remittances: If you are a tax resident with foreign income, plan carefully when and how you bring money into Thailand.
6. Take advantage of deductions and credits: Thailand allows various deductions (for example, personal allowance, deductions for insurance premiums, retirement fund contributions, etc.) that can reduce taxable income. Also, if you paid tax on income abroad, be sure to claim a foreign tax credit or exemption as allowed by any treaty or Thai law. This can significantly reduce your Thai tax liability. Because these can get complex, this is where having a tax advisor helps, but at minimum retain proof of any taxes you paid overseas.
7. Consult a tax professional: If you have substantial income, multiple sources of income, or multiple country tax residencies, it’s highly advisable to consult with a tax professional (either a Thai accountant or an international tax advisor). They can help ensure you don’t pay more tax than necessary and that you comply with all filing requirements. The cost of advice is often much less than potential penalties or overpaid taxes.
8. Stay informed: Tax laws can and do change. Keep an eye on announcements from Thailand’s Revenue Department, especially regarding the foreign income rules or other policies that affect expats (for example, any changes to tax rates, new reliefs, or obligations). Joining expat forums, attending tax seminars, or subscribing to news updates can help you stay current on anything that might impact your obligations in Thailand.

Please reach out if you feel any information is incorrect, but remember we cannot and do not give tax advice.