Tax Service

Complete summary of tax deductions and exemptions for expats in Thailand

Here is the complete summary of tax deductions and exemptions for expats in Thailand who file their tax returns there.

Tax Deductions for Expats in Thailand

1. Personal Allowance (ค่าลดหย่อนส่วนตัว)

  • Description: The basic deduction available to all taxpayers.
  • Amount: 60,000 THB per person.
  • Who qualifies?: All taxpayers in Thailand, including expats who file taxes there.

2. Spouse Allowance (ค่าลดหย่อนคู่สมรส)

  • Description: If you are legally married and your spouse has no income, you can claim this deduction.
  • Amount: 60,000 THB.
  • Who qualifies?: Only if you are legally married under Thai law. Unregistered partners (common-law spouses) are not eligible.

3. Child Allowance (ค่าลดหย่อนบุตร)

  • Description: A deduction for each child you support.
  • Amount:
    • 30,000 THB per child.
    • Additional 30,000 THB per child if born after 2018.
  • Who qualifies?: Parents who financially support their children.

4. Parental Care Allowance (ค่าลดหย่อนอุปการะเลี้ยงดูบุพการี)

  • Description: If you financially support your parents or your spouse’s parents.
  • Amount: 30,000 THB per parent.
  • Who qualifies?: The parents must be over 60 years old and have an annual income below 30,000 THB.

5. Life and Health Insurance Deduction (ค่าลดหย่อนเบี้ยประกันชีวิตและสุขภาพ)

  • Description: You can deduct premiums paid for life or health insurance policies.
  • Amount:
    • Life Insurance: Up to 100,000 THB.
    • Health Insurance: Up to 25,000 THB.
  • Who qualifies?: Only policies from Thai insurance companies are eligible.

6. Retirement Mutual Fund (RMF) & Provident Fund (กองทุนรวมเพื่อการเลี้ยงชีพและกองทุนสำรองเลี้ยงชีพ)

  • Description: A deduction for savings in Thai retirement funds.
  • Amount: Up to 30% of annual income, max 500,000 THB.
  • Who qualifies?: Only individuals investing in a Thai pension fund.

7. Social Security Fund Contribution (กองทุนประกันสังคม)

  • Description: If you contribute to Thailand’s Social Security Fund.
  • Amount: Up to 9,000 THB per year.
  • Who qualifies?: Employees in Thailand who pay social security contributions.

Tax Exemptions for Expats in Thailand

Expats who reside in Thailand for more than 183 days per year are considered tax residents, but they can avoid tax filing or tax payments under the following exemptions:

1. Foreign-Sourced Income Not Remitted in the Same Year

  • Rule: If your only income comes from abroad (e.g., a pension from Sweden) and you do not transfer the money to Thailand within the same calendar year, it is not taxable in Thailand.
  • Example: You receive a pension in Sweden in 2024 but transfer it to Thailand in 2025 – this means no tax obligation in Thailand.

2. Double Taxation Agreement (DTA) Between Sweden and Thailand

  • Rule: If you already pay tax on your pension in Sweden, you may not have to pay tax in Thailand.
  • How to apply?
    1. Request a tax certificate from the Swedish Tax Agency (Skatteverket) (“Certificate of Tax Paid”).
    2. Submit this certificate to the Thai Revenue Department along with your tax return.
    3. Await approval – if granted, you will be exempt from paying tax in Thailand.
  • Important: This usually applies to state pensions, but occupational pensions and private pensions may still be taxed in Thailand.

3. Low Thai Income Below Taxable Threshold

  • Rule: If you earn less than 150,000 THB per year in Thailand, you do not need to file a tax return.
  • Note: This applies only to income earned in Thailand, not to foreign pensions.

Summary

DeductionAmountWho qualifies?
Personal Allowance60,000 THBAll taxpayers
Spouse Allowance60,000 THBIf spouse has no income
Child Allowance30,000 THB per child (+30,000 if born after 2018)Parents
Parental Support30,000 THB per parentIf parent is over 60 and has low income
Life & Health InsuranceUp to 100,000 THB (life) + 25,000 THB (health)Only Thai insurance policies
Retirement Savings (RMF/Provident Fund)Up to 500,000 THBThai retirement fund investors
Social Security ContributionsUp to 9,000 THBEmployees in Thailand
Tax ExemptionRule
Foreign Income Not Brought into ThailandIf pension remains abroad during the same year
Double Taxation AgreementRequires application + tax certificate from Sweden
Low Thai IncomeBelow 150,000 THB = no tax return required

This information is general and subject to individual circumstances. Recommendation: Always consult a Thai tax professional to ensure the best tax strategy and avoid unnecessary taxation. Expat Protected is you partner in this.