(PIT) is a direct tax imposed on a person’s income, and the amount is based on the progressive rate schedule set out by the Revenue Department of Thailand. Taxpayers are classified as either “resident” or “non-resident”. For personal income tax purposes, “resident” refers to a person who has resided in Thailand for more than 180 days in that calendar year.
A resident is liable for tax on income derived from sources in Thailand and on income from foreign sources brought into the country. A non-resident is subject to tax only on income derived from employment or business conducted in Thailand and from property located in Thailand.
Typically, a taxpayer is required to calculate their tax liability, file a return and pay any tax due any on a calendar year basis. The return and payment is made to the Revenue Department by the last day of March in the year following the taxable year.
For certain types of income, tax must be withheld by the payer when payment is made. The payer of the income is responsible for filing a tax return and submitting the amount of the tax withheld to the District Revenue Office. The amount of tax withheld is credited against the payee’s tax liability at the time of filing their PIT return.
Perhaps the best-known type of withholding tax is the PIT deducted by an employer from an employee’s wages, but there are many transactions in Thailand that are subject to withholding tax.