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Thailand taxes its residents and non-residents on their assessable income derived from employment or business carried on in Thailand, regardless of whether such income is paid in or outside Thailand. Residents who derive income from abroad are taxable on that income if remitted into Thailand in the year in which it is received. Note that income derived overseas, and not remitted to Thailand is not taxed.
Personal Income Tax (PIT) Rates
The current PIT rates are shown below.
Residents are defined as persons residing in Thailand at one or more times for an aggregate period of 180 days or more in any tax year (calendar year). Short-term residence is not defined under Thai tax regulations.
Social Security Contributions
All employees are required to contribute to a social security fund an amount equal to 5% of their salary, up to a maximum contribution of THB 750 per month.
Employers and the government are also required to contribute an equal amount.
Value-Added Tax (VAT)
The current rate of VAT is 7%.
A legacy received by an individual or a corporate entity, regardless of nationality, from a testator who has died is exempt from PIT under the Revenue Code but is subject to inheritance tax. Heirs are subject to the inheritance tax only on the value of a legacy that exceeds THB 100 million obtained from each testator together either once or on several occasions.
The inheritance tax rate is 10%, except in the case of heirs who are ascendants or descendants of the testator; where the rate is 5%. Legacies received by the spouse of a testator are exempt from the tax.
Property subject to the inheritance tax comprises immovable property, securities according to the law, bank deposit accounts or other money of a similar nature that the testators have the right to call back or claim from financial institutions or persons who hold such money, registered vehicles, and financial assets to be prescribed in Royal Decrees.