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If you’re wondering how US expat taxes in Thailand work, you may already be considering a move there. Between the paradisiacal beaches, exquisite cuisine, and low cost of living, there are plenty of reasons to make the Land of Smiles your new home — but it’s important to consider practical matters as well.
Even though living in Thailand has many advantages, it can complicate your taxes. Fortunately, that’s where Bright!Tax comes in. As a tax advisory firm geared specifically toward Americans living abroad, we’re well-versed in the complexities of international tax law — and we’re here to break things down for you.
Below, we’ll go over how Thailand’s government taxes Americans living there, your US tax and reporting obligations, how to minimize your tax liability, and more.
Snapshot of taxes in Thailand
- Primary tax forms: PND 90/91
- Tax deadline: March 31st (hard copy), April 8th (online)
- Reporting website: The Revenue Department’s e-Service portal
- Administrative language(s): Thai
- Tax treaty: Yes
- Totalization agreement: No
Thailand taxes for US Expats
Thailand considers anyone who lives in the country for more than 180 days per year to be a tax resident and, therefore, subject to taxation on worldwide income by the Thai government.
Previously, foreign income was only taxed if it was remitted in Thailand the same year it was earned. But as of January 1st, 2024, the Thai government will tax residents on foreign-sourced income as long as they were also residents when it was earned.
However, falling short of Thailand’s tax residence definition doesn’t necessarily mean you’re not on the hook for Thai taxes. The Thai government taxes any income derived from employment or business carried out in Thailand — regardless of where it originated or was paid out — within the same year it was received.
How to file taxes in Thailand
Anyone subject to Thai taxes must complete a Thai tax return. Form PND 91 is used for those who earn only regular employment income, and Form PND 90 is used for those who earn income from employment and other sources.
Most expats choose to file on the e-filing website of the Revenue Department, the Thai tax authority. In this case, the return and bill (if applicable) are due by April 8th. If they decide to file a hard copy instead, the return and bill (if applicable) are due by March 31st.
Individuals who engage in certain types of business and work, such as property rental, “liberal professions” (law, healing, engineering, architecture, fine arts, etc.), and contract work, among others, must also submit a half-year tax return and pay their bill (if applicable) by September 30th.
Thailand tax rates
Thailand uses a progressive tax system, in which the more you earn in a year, the higher your marginal tax rate is. Tax brackets range from 0% on the lowest end to 35% on the highest, with brackets based on earnings in Thai baht (THB), the official currency of Thailand. One baht equals about $0.028 USD as of February 14th, 2024.
The personal income tax brackets in Thailand for 2024 are as follows:
| Taxable Income (THB) | Taxable Income (USD) | Tax Rate |
| Up to ฿150,000 | Up to ~$4,193.16 | Exempt |
| ฿150,001 – ฿300,000 | ~$4,193.19 – ~$8,386.32 | 5% |
| ฿300,001 – ฿500,000 | ~$8,386.35 – ~$13,977.20 | 10% |
| ฿500,001 – ฿750,000 | ~$13,977.23 – ~$20,965.80 | 15% |
| ฿750,001 – ฿1,000,000 | ~$20,965.83 – ~$27,954.40 | 20% |
| ฿1,000,001 – ฿2,000,000 | ~$27,954.43 – ~$55,908.80 | 25% |
| ฿2,000,001 – ฿5,000,000 | ~$55,908.83 – $139,772 | 30% |
| Over ฿5,000,000 | Over $139,772 | 35% |
Pro tip:
Individuals 65 and older may exempt up to ฿190,000 (~$5,346.39) from taxation.
Some types of income are exempt from taxation, including:
- Employment benefits, such as medical treatment or per diem traveling expenses
- Certain types of retirement, social security, and long-term equity funds
- Certain types of gift income, such as gifts from biological parents or alimony/child support under ฿20 million (~$561,404) and gifts for educational or charity purposes
Other common taxes in Thailand
Capital gains tax
Most capital gains income is taxed at ordinary rates in Thailand, from 0% to 35%, according to the brackets above. However, there are exceptions:
- Dividends are taxed at a flat rate of 10%
- Interest may be taxed at a flat rate of 15%
- Cryptocurrency & other digital tokens are taxed at a flat rate of 15%
- Some types of capital gains are exempt from taxation, including income derived from the sale of:
- Shares in companies listed on the Thai Stock Exchange
- Certain types of non-interest-bearing debt instruments issued by a corporation
- Certain types of securities listed on stock exchanges of Association of Southeast Asian Nations (ASEAN) member countries
Value-Added Taxes (VAT)
The standard value-added tax rate in Thailand is 10%. Certain items are exempt, however, including:
- Staple food items
- Education
- Healthcare
- Real estate sales
Self-employed individuals must generally register for VAT, charge it to clients/customers, and remit that money to the Thai government.
Property taxes
Thailand has several restrictions to prevent non-Thai nationals from purchasing property in Thailand. However, there are certain ways to get around this, such as by owning the housing but not the land on which it sits (e.g., condo purchases).
In the case that a US expat acquires property in Thailand, they may be subject to Thai property taxes, including:
- A 2% transfer fee on purchases of existing property, split evenly between the buyer and the seller
- A 3.3% business tax on property sales
- A 0.5% stamp duty fee on sales of properties held for five years or more
- A 12.5% tax on commercial property (although this is often passed on to tenants)
Social Security taxes
US expats working for Thai employers will have 5% of their salary, up to a maximum of ฿750 (~$21.05) per month, deducted for social security, with their employers and the Thai government contributing an additional 5% and 2.75%, respectively.
Because the US has no totalization agreement with Thailand, you may owe social security taxes to both countries.
Independent contractors living in Thailand are not required to pay into social security but may do so at a rate of either ฿70 (~$1.96), ฿100 (~$2.81), or ฿300 (~$8.42) per month to receive associated benefits (e.g., healthcare, parental leave, unemployment, etc.).
US taxes for Americans living in Thailand
Due to the US’s citizenship-based taxation system, all American and permanent residents who meet the minimum income reporting requirements must file a federal US tax return every year — even if they live overseas. Sometimes, they may also need to file state or local taxes.
If you’re also subject to taxation in Thailand, you may technically be at risk of double taxation.
While the US/Thailand tax treaty prevents this in theory, the savings clause — which gives the US the right to tax American citizens living in Thailand as if the agreement didn’t exist — mitigates many of its benefits. Fortunately, the IRS offers some tax breaks specifically for Americans abroad.
Tax credits for US citizens living in Thailand
The two main tax breaks for Americans abroad are the:
Foreign Tax Credit (FTC)
The FTC provides Americans with dollar-for-dollar credits on any income taxes paid in another country, allowing them to subtract what they’ve paid in foreign income taxes from what they owe the IRS. To qualify, taxes must be legal, income-based, and made out to you specifically.
Foreign Earned Income Exclusion (FEIE)
The FEIE allows Americans to exclude a certain amount of foreign-earned income from taxation — up to $120,000 in tax year 2023 (aka the taxes you’ll pay in 2024). To qualify, you must pass either the Physical Presence Test or Bona Fide Residence Test. Doing so can also allow you to write off eligible housing expenses via the Foreign Housing Exclusion or Deduction.
You can also claim many of the tax breaks you would be eligible for if you lived stateside — for example, US expat parents can typically claim the Child Tax Credit (CTC) for up to $2,000 in partially refundable credits.
Reporting Obligations for Americans Living in Thailand
Living abroad may also affect your reporting obligations. A couple of the most common reports US expats must file include the:
Foreign Bank Account Report (FBAR)
US expats with $10,000 or more across foreign bank accounts must file an FBAR with the Financial Crimes Enforcement Network (FinCEN).
Form 8938
The Foreign Account Tax Compliance Act (FATCA) requires US expats with $200,000 in foreign assets on the last day of the tax year — or over $300,000 at any time during the tax year — to report them on Form 8938. Note that thresholds for those living in the states are much lower, starting at just $50k.
Pro tip:
Keep in mind the list above is not all-inclusive. Depending on individual circumstances, you may have additional tax and reporting obligations. When in doubt, make sure to contact a US expat tax professional.
Resources
- Thailand – Individual – Residence
- Thailand – Moves on Foreign-Sourced Income Brought into Thailand by Tax Residents
- Thailand – Individual – Taxes on personal income
- Thailand – Individual – Income determination
- Thailand – Corporate – Other taxes
- Property Ownership for Foreigners: The do’s & don’ts and the alternatives
- Property Tax in Thailand
- The Thai Social Security System
