Foreign nationals and expatriates who come to work within the Kingdom of Thailand, in addition to having the appropriate work visa (Non-B Visa) and work permit (Work Permit), or certain groups of foreigners who do not require a work permit, must all pay personal income tax, namely PND. 90 or PND. 91, as evidence of tax payment as required by law.
If Thai citizens or foreign nationals fail to submit their tax returns (PND. 90 or PND. 91) within the specified timeframe, they may face a fine of up to 2,000 baht according to Section 35 of the Revenue Code. However, they can request a reduction in the fine.
Additionally, if taxes owed are not paid by March 31st of each year, it is considered a failure to submit the tax return. In such cases, the individual must go to the local Revenue Department office to file the return and pay the taxes, along with an additional 1.5% penalty per month or fraction thereof on the unpaid taxes, as well as the fine mentioned previously.
Furthermore, the tax return (PND.) also affects one's ability to apply for social security coverage and to renew a work permit in the Kingdom of Thailand.
The Difference Between PND. 90 and PND. 91?
- PND. 90 is the Personal Income Tax Return form for both foreign nationals and Thai citizens who have assessable income under Sections 40(1) to (8) from multiple sources or a single source. Everyone must file this form by March 31 of every year.
- PND. 91 on the other hand, is the Personal Income Tax Return form for both foreign nationals and Thai citizens who have assessable income under Section 40(1) from employment only. Everyone must file this form by March 31 of every year, just like PND. 90
Taxation Regulations for Foreign Nationals Earning Income from Employment in Thailand
For foreign nationals who need to file PND 90 tax return, the requirements are as follows:
- Foreign nationals without a spouse and with income exceeding 60,000 THB in the previous tax year.
- Foreign nationals with a spouse and with income exceeding 120,000 THB in the previous tax year. These individuals must file the Personal Income Tax Return (PND 90) by March of the following year.
For foreign nationals who need to file PND 91 tax return, the requirements are as follows:
- Foreign nationals without a spouse and with income exceeding 120,000 THB in the previous tax year.
- Foreign nationals with a spouse and with income exceeding 220,000 THB in the previous tax year. These individuals must file the Personal Income Tax Return (PND 91) by March of the following year.
Criteria for Considering Sources of Income and Tax Obligations for Foreign Nationals
Whether foreigners or Thai people If there is income generated in Thailand both from the source of money earned from working in Thailand Money earned from doing business in Thailand Money received from the employer's business in Thailand Money received from assets located in Thailand You must take income from these sources into consideration for paying taxes in that tax year and must be a resident of Thailand. (Remain in Thailand for a total period of up to 180 days in the tax year, whether Thai or foreigner) if the above conditions are not met. You will not have to pay taxes.
This information pertains to personal income tax details, including both PND 90 and PND 91 forms, which are essential for foreigners working in Thailand or those intending to work within the Kingdom of Thailand. For employers or employees who have queries and require further consultation with experts, Lawyer V-Work Company is at your service. We are a companyspecializing in work permit processing, providing comprehensive Visa and Work Permit services.Our team of legal professionals is available to assist and guide you through every step of the process with transparency and in full compliance with all legal requirements. You can monitor and track the progress of your application throughout the process. For additional information, please contact us via LINE: @v-work
