Thai Tax
ไทย

Structure comparison

Company or personal

The same work earned as a person, or run through a company that pays you a salary and dividends. Every figure includes the company's tax, its running costs and the tax on what reaches you.

 

1The work

Most freelance service work without materials falls under 40(2), sharing one 100,000 baht expense limit with salary. Selling goods and running a trade falls under 40(8).

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2The company

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3Your pay

4Moving costs into the company

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Rent you receive is your 40(5) income with a 30% standard expense, and the company withholds 5%. Car rent is deductible up to 36,000 a month. Entertainment is capped at 0.3% of revenue or capital. The 2x for SME digital spend covers the first 300,000.

Personal assets sold to the company

Selling a personal computer, phone or car you did not buy to trade is exempt for you under section 42(9). The company depreciates it at a market price. The money you receive replaces the asset, so it is not counted as a gain below.

Tax by tax

What each structure pays, who pays it, and the personal return you file in each case.

Through the company

Salary 96,667/mo
Corporate income tax106,500The company · PND 51 by 31 August, PND 50 within 150 days of year end
Personal income tax on your salary115,000You · withheld monthly by the company on PND 1, settled on your annual returnAbout 9,583 a month withheld from 96,667
Tax on your dividend85,833You · 10% withheld by the company on PND 2, as final taxOn a dividend of 858,325
Total tax307,333
Your personal return as directorPND 91
Salary, 40(1)1,160,000
1Salary, wages, pension1,160,000
2Less exempt income (from section ข line 6)0
3Balance1,160,000
4Less expenses, 50% up to 100,000−100,000
5Balance1,060,000
6Less allowances (attachment item 24)−60,000
7Balance1,000,000
8Less donations counted twice, up to 10% of line 70
9Balance1,000,000
10Less donations, up to 10% of line 90
11Net income1,000,000
12Tax on net income115,000
13Less foreign tax credit0
14Tax after foreign credit115,000
15Less tax withheld−115,000
16Tax to pay0

Tax withheld here is the monthly PND 1 withholding, plus 5% on any rent and the 10% on included dividends.

Earned personally

Standard expenses
Personal income tax437,000You · PND 90 by 31 March, after any 3% withheld by clients. Rent, professional and business income also needs a half-year PND 94 by 30 September.
Total tax437,000
Your personal returnPND 90
Fees, 40(2)2,400,000
1Income after expenses (items 1 to 7)2,300,000
2Less allowances (attachment item 24)−60,000
3Balance2,240,000
4Less donations counted twice, up to 10% of line 30
5Balance2,240,000
6Less donations, up to 10% of line 50
7Net income2,240,000
8Tax at progressive rates437,000
9Minimum tax, 0.5% of non-salary income12,000
10Tax due, the higher of 8 and 9437,000
13Less foreign tax credit0
14Tax after foreign credit437,000
15Less tax withheld, dividend credit and PND 940
25Tax to pay437,000

What a company files

All forms
Every month
PND 1 on your salary, PND 3 and PND 53 on payments withheld, social security by the 15th
Every month, VAT
PP 30 by the 15th; revenue above 1.8M requires VAT registration in either structure
When paying dividends
PND 2 for the 10% withheld, within 7 days of the next month
End of February
PND 1 Kor, the annual salary summary
By 30 April
Annual general meeting approves the audited accounts
Within 150 days of year end
PND 50 with audited financial statements
Within a month of the AGM
Financial statements to DBD (Sor Bor Chor 3), shareholder list (Bor Or Jor 5) within 14 days
By 31 August
PND 51, half the estimated year's tax; underestimating by more than 25% adds 20% of the shortfall

Unregistered partnership

2

Taxed once as a single person with 60,000 allowance per partner, capped at 120,000. Since 2558 each partner's share is taxed again as 40(8) income with no expense and no credit.

Tax paid by the partnership
419,000
Tax on 2 partners' shares
166,200
Total
585,200
If each partner earned their share personally
250,000