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Main Page - Expat and Thai Income Tax

Assessable Income

Decision Time - Thai Income Tax

Countries may enter into tax treaties, usually called a Dual Tax Agreement (DTA) with another country, which set out agreement between the two with the purpose to avoid double taxation.

These treaties often exempt foreign-source income from tax or provide credit for taxes already paid to the source country.  Thailand has 61 Dual Tax Agreements. 

If the source country for your income transferred into Thailand has a DTA, you should carefully examine the specific DTA articles to find if you are entitled to a:

•     Tax credit,
•     Tax exemption,
•     Reduced rate of tax, or
•     Other treaty benefit or safeguard.

NOTE: All DTAs ARE NOT the same! For example, the USA DTA exempts pensions for government service and social security from being taxed in Thailand (Articles 20 & 21). Whereas, several other countries DTA only provides for the exemption of pensions for government service. However, see the the section below regarding the Non-Discrimination Article contained in most if not all DTAs. 

Click here for the Thailand Revenue Department's (TRD's) webpage that lists these countries and has a link to view the document. 

Included are the following countries which make up many of the English speaking Expats living in Thailand: Australia (1989), Canada (1985), Great Britain & Northern Ireland  (1981), Ireland  (2015), New Zealand (1998), and United States of America (1997).   

NOTE:  It is important to first read any definition clause or section in the DTA. Words in everyday language do not always match their legal or common meaning. The definition clause clarifies exactly how a term must be interpreted within that specific document. 

Click here for the TRD's Introduction to DTA page. The following is an excerpt from that page:

In general the DTA does not stipulate any specific item of income and tax rate. It provides whether the source or resident country is entitled to tax certain income. If the source country has taxing rights, the income will be subject to tax according to the domestic laws of that country.

Elimination of double taxation

The focus of a DTA is the elimination of double taxation. Each DTA may prescribe different methods of elimination of double taxation of a person by the resident country:

(1)   Exemption method*

The country of residence does not tax the income which according to the DTA is taxed in the source country.

(2)   Credit method

The resident country retains the right to tax the income which was already taxed in the source country. It calculates its tax on the basis of the taxpayer's total income including income from the other country which according to the DTA is taxed in that other country. However, it allows a deduction from its own tax for the tax paid in the other country.

[Note: The 2025 Thailand Tax Return Forms now provide for offsetting any Thai tax liability for taxes paid in the source country]