Taxes and Tax Schemes in Thailand | What You Need to Know in 2025

Thailand, a Southeast Asian nation known for its tropical beaches, rich culture, and growing digital nomad community, operates a relatively straightforward tax system that particularly appeals to location-independent professionals and foreign investors. Situated in the heart of Southeast Asia, Thailand combines modern infrastructure with a cost-effective lifestyle, making it increasingly popular among international professionals.

Thailand's economy, the second-largest in Southeast Asia, has shown remarkable resilience through various global challenges. The country has successfully positioned itself as a regional hub for digital nomads and remote workers, with special visa programs and tax incentives designed to attract international talent and investment.

The expat community in Thailand is diverse and growing, with many drawn to its combination of quality lifestyle and tax advantages. Major sectors like technology, tourism, and international services provide numerous opportunities for foreign professionals seeking tax-efficient employment arrangements.

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Thailand Income Tax

Thailand employs a progressive personal income tax system for residents, with rates ranging from 0% to 35%. The tax year follows the calendar year, and residents are taxed on their Thailand-sourced income as well as foreign income remitted to Thailand in the same tax year it's earned. For the 2025 tax year, the progressive rates are:

The system includes various deductions and allowances, including personal allowances, spouse and child allowances, and deductions for insurance premiums and certain types of savings. These can significantly reduce the effective tax rate for many residents.

If you want to have a better understanding of the taxes you should pay on personal income in Thailand, you can use the personal tax calculator in the Taxation section of the Thailand page.

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Thailand Tax on Overseas Income

Thailand's taxation of foreign income follows specific rules that can benefit expats and digital nomads. Foreign-sourced income is only taxed if it's remitted to Thailand in the same year it's earned. This creates significant planning opportunities for international professionals.

Tax residency applies to individuals staying in Thailand for 180 days or more in a calendar year. However, the first year of residency may have special provisions, and double taxation agreements with many countries can affect tax liability.

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Thailand Tax on Investments

Investment income in Thailand receives varying treatment depending on the type and source. Capital gains from stocks traded on the Thai Stock Exchange are tax-exempt, while other capital gains are taxed at normal rates. Dividend income from Thai companies is subject to a 10% withholding tax for residents.

The investment landscape particularly benefits from Thailand's network of double taxation agreements and specific incentives for foreign investment in certain sectors. Property investment follows specific rules, with different rates applying to various types of property transactions.

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Thailand Corporate Taxation

Corporate tax in Thailand stands at 20% for most companies, though small and medium-sized enterprises may qualify for reduced rates. The country offers various incentives through the Board of Investment (BOI) for companies in targeted industries or locations.

Foreign companies must carefully consider their structure, as Thailand has specific rules regarding permanent establishments and branch offices. Different corporate forms may result in different tax treatments and compliance requirements.

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Special Tax Regimes

Thailand has introduced several special tax regimes designed to attract specific types of foreign talent and investment:

The Long-Term Resident (LTR) visa program offers tax benefits for eligible professionals, including a flat 17% tax rate on employment income from qualifying companies and tax exemptions on foreign-source income.

The Smart Visa program provides similar benefits for highly skilled professionals in targeted industries, along with simplified immigration procedures and work permit requirements.

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Regional Comparison

Tax Planning for Thailand

Effective tax planning in Thailand requires consideration of several key factors:

• Timing of foreign income remittance
• Structure of employment arrangements
• Investment holding strategies
• Utilization of available deductions and allowances
• Application of relevant double taxation agreements

Regular review of tax positions is essential, particularly for digital nomads and remote workers who may have complex international income sources.