Tax system in Thailand
Thailand taxes residents and non-residents on Thai-source employment and business income, and Thai residents can also be taxed on foreign income earned from 1 January 2024 onward when it is remitted to Thailand in the same or a later tax year.
Companies generally pay 20% corporate income tax, while VAT is currently reduced to 7% until 30 September 2026 unless the government extends the relief again.
Thailand does not have an annual net wealth tax, but inheritance tax, gift tax, social security, land and building tax, and withholding tax can still matter for families, founders and investors.
Tax rates at a glance
- Income tax
- 0% to 35%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 10% / 5%
- Capital gains tax
- No separate CGT
- Corporate tax
- 20%
- Dividend tax
- 10%
- VAT
- 7% (temporary)
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesFoundersInvestorsExpatsProperty owners
Watch out for
- Thailand is not low-tax once VAT, withholding, social security, land and building tax, and inheritance or gift tax are included.
- The 7% VAT rate is temporary and is scheduled to expire on 30 September 2026 unless extended again.
- Thailand's foreign-income remittance rules apply to income earned from 1 January 2024 onward, so pre-2024 and post-2024 sourcing needs careful record keeping.
- Large multinational groups should also check the 15% top-up tax rules that apply from fiscal years beginning on or after 1 January 2025.
Frequently asked questions
Is Thailand a low-tax country?
Thailand is not a low-tax country in the simple sense. It has progressive personal income tax, 20% corporate income tax, VAT, social security contributions, inheritance tax and gift tax, even though it has no annual net wealth tax.
Which taxes matter most in Thailand?
The main taxes to model are personal income tax, corporate income tax, VAT, withholding tax, social security, land and building tax, inheritance tax and gift tax. For cross-border cases, foreign-income remittance and treaty relief also matter.
Is Thailand good for expats and founders?
It can be, but the answer depends on residence, payroll, foreign income, company structure and where the revenue comes from. The 0% wealth tax headline does not remove the rest of the tax stack.