Thailand Tax Basics: Types of Income Tax and What PND Means

Understanding how taxes are structured in Thailand is an important step for any foreign individual or company operating in the country. The Thai tax system is administered by the Revenue Department and covers several distinct categories of income, each with its own forms, rates, and filing deadlines.

This guide covers the five main types of income tax in Thailand, what PND stands for, and which forms are relevant depending on your situation.

What Does PND Stand For?

PND stands for ภาษีเงินได้, which translates directly to "income tax." In practice, PND refers to the family of forms used to declare and remit income taxes to the Revenue Department. These forms differ depending on the type of taxpayer (individual or company), the nature of the income, and the filing frequency.

1. Personal Income Tax

Personal income tax applies to individuals earning income in Thailand, including both Thai nationals and foreign nationals who qualify as tax residents. A foreign national becomes a tax resident in Thailand after spending 180 days or more in the country during a calendar year.

Tax is calculated on a progressive scale based on net income:

Net Income (THB)	Tax Rate
0 to 150,000	Exempt
150,001 to 300,000	5%
300,001 to 500,000	10%
500,001 to 750,000	15%
750,001 to 1,000,000	20%
1,000,001 to 2,000,000	25%
2,000,001 to 5,000,000	30%
Over 5,000,000	35%

The relevant PND forms are:

• PND 90: Annual return for individuals with multiple types of income, such as rental income, dividends, business income, or salary combined with other income types. Filing deadline: 1 January to 31 March of the following year.

• PND 91: Annual return for individuals whose only income is employment salary under a Thai employer. Filing deadline: 31 March of the following year.

• PND 94: Biannual return for individuals with non-salary income under sections 40(5) to 40(8) of the Revenue Code, such as commissions, royalties, and rental income. Filing deadline: 1 July to 30 September of the same tax year.

2. Corporate Income Tax

Corporate income tax (CIT) applies to companies and juristic partnerships registered in Thailand. The standard rate is 20% of net profit.

For SMEs with paid-up capital not exceeding THB 5 million and annual revenue below THB 30 million, reduced rates apply:

Net Profit (THB)	Tax Rate
Less than 300,000	Exempt
300,001 to 3,000,000	15%
Over 3,000,000	20%

The relevant forms are:

• PND 50: Annual corporate income tax return. Must be filed within 150 days from the end of the accounting period.

• PND 51: Mid-year corporate income tax estimate. Filed within 2 months from the midpoint of the accounting period. If the estimated profit is understated by more than 25% of the actual annual profit, an additional 20% surcharge on the underpaid tax applies.

3. Withholding Tax

Withholding tax is a collection mechanism where the payer deducts tax from payments made to recipients and remits it directly to the Revenue Department. It applies to a range of payments including salaries, service fees, rent, royalties, and dividends.

Key forms:

• PND 1: Monthly withholding tax on salaries paid to employees.

• PND 3: Monthly withholding tax on payments made to individual contractors, service providers, landlords, and consultants.

• PND 53: Monthly withholding tax on payments made to companies and legal entities for services, rent, consulting, or management fees.

• PND 54: Monthly withholding tax on income paid to foreign companies that do not operate in Thailand but receive assessable income from Thai sources, such as commissions, royalties, or dividends.

All withholding tax forms must be submitted within 7 days from the end of the month in which the payment was made. Filing through the Revenue Department's e-filing system extends this deadline to 15 days.

4. Value Added Tax (VAT)

VAT applies to businesses selling goods or providing services in Thailand. The statutory rate under the Revenue Code is 10%, but a government decree currently reduces it to 7%. This reduction is renewed annually.

Businesses with annual revenue exceeding THB 1.8 million are required to register for VAT.

• PP 30: Monthly VAT return, summarising output tax and input tax. Must be filed by the 15th of the following month. A nil return is still required in months with no VAT activity.

5. Specific Business Tax

Specific business tax applies to certain sectors that operate outside the VAT framework, including banking, financial institutions, life insurance, pawnbroking, and real estate transactions.

• PT 40: Monthly specific business tax return.

What This Means in Practice

For an international company setting up operations in Thailand, the most immediately relevant obligations are typically withholding tax (from the moment you start paying salaries or contracting services), corporate income tax (annually and mid-year), and VAT once your revenue exceeds the registration threshold.

Personal income tax filings are the responsibility of individual employees, but employers are required to withhold at source via PND 1 each month.

Missing a filing deadline triggers a surcharge of 1.5% per month on the outstanding tax amount, in addition to penalties of 1 to 2 times the tax due depending on the circumstances.

Need Support with Tax Compliance in Thailand?

KLAY Consulting coordinates accounting and tax filing through a vetted partner network. Whether you are setting up a new entity or managing an existing operation, we can ensure your obligations are correctly handled from the start. Contact us to discuss your situation.