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Tax Rates in Thailand

Value Added Tax (VAT) Rates

VAT is a tax applied to the sale of goods or the provision of services. The current rates are 7% and 0% (e.g., for export activities), with certain exemptions for specific activities.

VAT applies to companies with an annual turnover exceeding 1.8 million baht. However, companies intending to hire foreign workers must register for VAT, regardless of their turnover.

Corporate Income Tax Rates

Withholding Tax (WHT) Rates

Personal Income Tax Rates

Thailand uses a progressive tax rate system for individuals.

Deductions and Allowances: Taxpayers can claim deductions for personal expenses, dependents, and approved investments.

Payment Examples in Thailand Demonstrating the use of VAT and Withholding Tax (WHT)

Table showing a several payment example calculations in Thailand, including service amount, VAT rate and amount, gross payment, WHT rate and amount, and final payment due.

Social Security Rates

Social security contributions are shared between employers, employees, and the government.

5%: Employee’s contribution on wages are capped at ฿750 per month.
5%: Employer’s matching contribution are capped at ฿750 per month.

Example of Monthly Social Security Contributions:

For a monthly salary of ฿15,000, the employee contributes ฿750, and the employer matches this with ฿750.

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