Thailand taxes residents on Thailand-source income plus foreign-source income actually remitted into Thailand. Effective 1 January 2024 (Revenue Department Instruction Por. 161/2566), Thailand closed its historic same-year remittance loophole: foreign-source income of a Thai tax resident earned from 2024 onward is now taxable upon remittance regardless of when it was earned (previously, waiting until a later year to remit avoided Thai tax entirely) - income earned before 2024 remains grandfathered and exempt when remitted, per the related Por. 162/2566. A proposed reform announced by the Revenue Department in mid-2025 would reintroduce a limited two-year grace period (income remitted within the year earned or the following year would be exempt), but this remains unenacted as of mid-2026 - the draft stalled when Parliament was dissolved ahead of the February 2026 general election, and the new coalition government has not revived it. Current rules (full taxation on remittance regardless of timing, for post-2024 income) remain in force; do not plan around the unenacted proposal.
The Thai tax year is the calendar year. The individual filing deadline is generally 31 March of the following year (extended for electronic filing, commonly to early April).
Thailand's headline corporate income tax (CIT) rate is 20%.
The headline personal income tax (PIT) rate is 35%.
The standard VAT/GST (or equivalent consumption tax) rate is 7%.
Under Section 41 of the Thai Revenue Code, an individual is a Thai tax resident if present in Thailand for 180 days or more in a calendar year, regardless of visa status or nationality. Residents are taxed on Thailand-source income and, since a rule change effective January 1, 2024, on foreign-source income brought into Thailand regardless of when it was earned (previously, foreign income was taxable only if remitted in the same year it was earned - that same-year loophole no longer applies). Non-residents are taxed only on Thailand-source income.
A non-Thai entity has a Thailand permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Thailand on the entity's behalf, following the OECD Model Treaty definition as applied under Thai domestic law and any applicable tax treaty.
Thailand has no Controlled Foreign Company provisions.
Thailand has no general thin capitalization rules, though a specified debt-to-equity ratio may be imposed as a condition for certain businesses or as a requirement for accessing specific tax incentive regimes (e.g., BOI promotion).
Thailand does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Thailand does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists requiring residents to separately disclose foreign accounts; foreign income is reported through the standard annual tax return.
Thailand does not have a CFC regime (see CFC section above) and does not provide a broad participation exemption for foreign dividends in the European sense; the taxation of foreign dividends instead turns on Thailand's remittance-based rule for foreign-source income generally (see Tax System above).
Thailand has a real foreign tax credit regime available to both individuals and companies for foreign tax paid on foreign-source income also taxed in Thailand under its remittance-based rule (see Tax System above), capped at the Thai tax otherwise due on that income.
Thailand has concluded double tax treaties with 61 countries, including the US, UK, Australia, Canada, and Singapore. Given the January 2024 remittance rule change, these treaties have become the primary mechanism for tax residents to relieve double taxation on foreign income brought into Thailand, rather than the previously available same-year deferral strategy.