Hong Kong: Thailand - Personal Income Tax

Last Updated: 20 November 1995
Most Read Contributor in Hong Kong, September 2016
The Revenue Code of Thailand lays down the principles to collect Personal Income Tax on almost all types of income received from the ability to earn income or from properties of a natural person or individual. The Code classifies income into eight categories, and such income, either earned or unearned, is subject to income tax if the tax is not exempt by law, royal decrees issued thereunder, or announcement or orders of the National Executive Council having the force of law. At this point, it is essential that a tax-payer carefully considers what type of income is subject to tax. He should also pay attention to the rules and regulations laid down by the Revenue Department as to how the provisions of the law are interpreted and enforced by the Department.

1.1 Individual tax-payers are divided into 5 categories:

1.1.1 Natural person
1.1.2 An Ordinary Partnership
1.1.3 A group of persons which is not a legal entity
1.1.4 A person who dies during a tax year
1.1.5 An undistributed estate

1.2 A Resident

A resident is defined under the Revenue Code to be a person residing in Thailand at one or more times totalling 180 days or more in any tax year. That person is treated a resident even though he is an alien and does not stay in Thailand under an immigrant visa. The determining factor is that he is physically present in Thailand for 180 days or more in a tax year.

1.3 A Non-Resident

A non-resident is a Thai or an alien who resides in Thailand for one or more times but the total is less than 180 days in any tax year. His tax liability is limited to the income received:

a) from a post or office held in Thailand
b) from a business carried on in Thailand
c) from a business of an employer in Thailand, or
d) from a property situated in Thailand

Whether such income is paid within or outside Thailand and whether or not he brings it into Thailand.

1.4 Payment of Income Tax

Payment of Personal Income Tax may be made under one of the following methods:

a) withholding Income Tax
b) payment of tax before its due date
c) payment of tax on its due date
d) joint tax liability
e) assessment by Tax Authorities

1.5 Tax Refund

If a tax-payer has over-paid his tax either by direct payment or through tax deduction, he is entitled to request a refund from the Revenue Department on the excess amount, provided that he files a claim for the refund (Form Khor 10) with the tax authority within three years.

1.6 Tax Clearance Certificate

In the past, an alien must apply for a tax clearance certificate from the Revenue Department if he is residence in Bangkok or from the Provincial Governor or his authorised representative if such an alien is resident in any province outside Bangkok. The Law on Tax Clearance Certificate came into effect on 1st January, 1960.

1.7 Appeal

If a tax-payer does not agree with the assessment order issued by the Tax Authority, he may lodge an appeal with the Board of Tax Appeals within 30 days from the date he receives such an order. This time period may be extended by the Director General of the Revenue Department. However, an appeal is not allowed if the Tax-payer refuses to cooperate with the Official in a tax investigation.

2. Income Tax on Juristic Entities

The general principle of income tax on juristic entities is based on the collection of tax on net profit arising from or in the consequence of the business carried on within an accounting period from the following juristic entities.

(1) a Limited Company, a Public Company or Juristic Partnership organised under Thai or a foreign law;

(2) a business or profit-seeking enterprise operated by a Foreign Government, or an organisation owned by a Foreign Government or any other juristic person organised under a foreign law;

(3) a joint venture, being a business or profit-seeking enterprise carried on jointly:

(a) by a company and another company;
(b) by a company and a juristic partnership;
(c) by a juristic partnership and another juristic partnership, or

(d) by a company and/or a juristic partnership on the one hand, and an individual, a group of persons, an ordinary partnership or another juristic person on the other hand.

(4) a foundation or association engaged in any revenue-producing business, but not including the foundations or associations designated as tax exempt organisations.

(5) any juristic person designated by the Director-General with the approval of the Minister and published in the Government Gazette, but there is none at the moment.

2.1 Corporate Tax-Payers

Corporate Tax-Payers can be divided into 7 categories:

2.1.1 Local Companies and Partnerships

Juristic Companies and Partnerships which are organised under Thai Law must pay income tax on all profits derived from domestic as well as foreign business operations. In this connection, if a company formed under the Civil and Commercial Code or Public Company Act of 1992 does not carry out any business in Thailand but has all its activities in a foreign country, it is still required to pay any income tax on the profit derived therefrom. However, tax credit may be allowed under the Applicable Double Tax Agreement.

2.1.2 Foreign Companies and Partnerships

Foreign Juristic Companies and Partnerships are classified as those entities incorporated under foreign laws. If they carry on business in Thailand, they are subject to tax under the Thai Revenue Code, Foreign Juristic Companies and Partnerships which carry on business in various countries including Thailand shall pay tax only on the net profit arising from or in consequence of the business carried on in Thailand during an accounting period.

2.1.3 Joint Venture

Although the Civil and Commercial Code of Thailand does not recognise joint ventures, this form of doing business is recognised as a tax entity by the Revenue Department. A joint venture is formed for big construction projects such as joint venture that constructed Sathorn Bridge across the Chao Phaya River. The partners must share in the profit and loss of the joint venture, and is a Limited Company of Partnership set up either under Domestic Law or Foreign Law. The joint venture is subject to Corporate Income Tax as well as Value Added Tax. Any profit derived by the joint venture shall be distributed to the participants in proportion to their interest but income tax could be exempted under Royal Decree No. 10 and No. 108.

In case where the participant is a foreign company that has no other business activity in Thailand, that participant will pay income tax on its share of profit at decree no. 10 in the same manner as a dividend.

2.1.4 Affiliated Companies and Partnerships

Affiliated Juristic Companies or Partnerships mean two or more juristic persons related to one another in any of the following manners:

(1) More than one half of the number of the shareholders or partners in one juristic person constitutes more than one half of the number of the shareholders or partners in another;

(2) The shareholders or partners holding more than 50 percent of the capital of one juristic person are also shareholders or partners holding more than 50 percent of the capital of another;

(3) One juristic person as a shareholder or partner holding more than 50 percent of the capital of another;

(4) More than one half of the number of the directors or partners with the power of management in one juristic person are directors or partners with the power of management in another.

The tax liability of an Affiliated Company is the same as that of a Juristic Company or Partnership. The law provides for such a definition in order to determine the income and net profit under Section 70 ter of the Revenue Code and reserve for bad debts which will be discussed in subsequent paragraph.

2.1.5 Registered Companies

Registered Companies means companies whose share are listed with the Stock Exchange of Thailand but do not include authorised companies.

2.1.6 Investment Management Companies

Investment Management Companies mean securities companies licensed to carry on the business of managing investments under the Securities and Exchange Act of 1992.

2.1.7 Consortium

Consortium is a group of companies similar to a joint venture but the members do not share in the profit and loss. Therefore, a consortium is not a tax entity by itself but the members must separately pay tax in their own names. A consortium is now a more popular form of doing business as compared to a joint venture because an efficient member can make profits while an inefficient member may suffer losses.

2.2 Tax Refund

A company or partnership that overpaid its taxes and duties is entitled to claim a refund from the Revenue Department within a period of three years from the last day of tax filing for the applicable accounting year by using from the Khor no. 10.

NOTE: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

If you would like further advice please contact: David Ellis, Johnson Stokes & Master, 16th Floor, Princes Building, 10 Chater Road, Hong Kong; Tel 2843 4226; Fax no. : 2845 9121. Alternatively do a text search "Johnson Stokes and Master" and "Business Monitor".

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.