Personal Income Tax (PIT) in Thailand

Liabilities for Personal Income Tax (PIT) in Thailand

• Individuals residing in Thailand for 180 days or more per year are liable for PIT.
• Non-resident individuals are taxed only on income sourced within Thailand.
• Thai citizens and foreign nationals earning income from various sources, including salaries and investments, are subject to PIT.

Exemptions from Personal Income Tax (PIT)

• Individuals earning below a specified threshold may not be liable for PIT.
• Certain categories, such as short-term visitors without local income, are not subject to PIT.
• Specific income types, such as government allowances or scholarships, can be exempt from PIT.

Entities Considered Liable for Personal Income Tax (PIT)

• Sole proprietorships and partnerships are liable for PIT based on their individual income.
• Corporations and limited companies, while typically subject to a corporate tax, may pass through certain income to shareholders who are then liable for PIT.
• Undivided estates are included as liable entities, treating them as a single taxpayer.

Community Enterprise Group and PIT

• In Thailand, a Community Enterprise group primarily comprises small, locally-managed businesses that collaborate for mutual benefit and may be subject to PIT.
• These enterprises are often organized around community projects or cooperative interests, pooling resources and profits.

Distinction of Undivided Estates for PIT

• An undivided estate is treated differently from standard corporate entities because it comprises assets left by a deceased person, having its own tax obligations under PIT.
• Income generated by undivided estates is taxed considering the beneficiaries or heirs rather than a separate entity structure.