Because freelancers are not our employees and we don't pay taxes on payouts, they must declare any income received via Solar Staff by themselves.
To carry on tax accounting in Thailand for your Solar Staff income, you need to:
Be a tax resident
Obtain a tax ID number
Comply with the tax liabilities
Tax residence in Thailand
Thailand taxes its residents on their worldwide income, while non-residents are taxed on Thai-source earnings only.
Thai residents are defined as persons residing in Thailand for an aggregate period of 180 days or more in any tax (calendar) year.
Tax ID number
When filing tax reporting, you need to specify your ID number. A Thai personal identification number (PIN) can be used in place of a TIN, aka taxpayer identification number (เลขประจำตัวผู้เสี ยภาษี อากร; a tax ID consists of 10 digits). However, the following persons do need to apply for TIN:
A person liable to personal income tax who:
Does not have a PIN under the civilian registration law (for example, a foreigner)
Is an individual who wishes to register as an entrepreneur and pay a value-added tax (VAT) or specific business tax (SBT)
An individual who became a VAT or SBT registrant before October 1, 2003
A juristic person liable to corporate income tax.
A juristic person that is liable to withholding tax (but not income tax).
Information on how to obtain a tax ID in Thailand and on the relevant deadlines is available here.
Freelancer taxes
In Thailand, freelancers can register as an individual or as a business entity. If the taxpayer's annual income exceeds THB 750,000, it is recommended to set up as a juristic person in order to save on taxes, but keep in mind that to receive income via Solar Staff, you have to be registered as an individual.
IMPORTANT! Solar Staff does not have the option to choose a tax status for freelancers based in Thailand, but you can fill in your TIN or PIN in your account.
Read on for more details.
Income tax
Personal income tax (ภาษีเงินได้บุคคลธรรมดา) is a mandatory tax that is calculated in THB (Thai baht) according to the formula (details here):
Payable Tax = (Gross Income – Deductions – Benefits) x Tax Rate
Deductions (การหักค่าใช้จ่าย) are permitted in the amount of 50% of income, but not more than THB 100,000.
Also, a freelancer can make use of the following deductible items (the list may change, so we recommend double-checking with the tax authority before filing your reporting):
Purchase of goods and services used for generating income (provided the taxpayer has a tax invoice from the store).
Personal allowance of up to THB 60,000 (if the freelancer has dependents).
Insurance premiums (life, health, and social insurance).
Investments (for example, in stocks, funds, LTF or RMF).
Charitable contributions.
The tax rate is progressive and depends on taxable income:
Net profit, THB | PIT, % |
up to 150,000 (up to THB 190,000 for those aged 65 years and up) | 0 |
150,001–300,000 | 5 |
300,001–500,000 | 10 |
500,001–750,000 | 15 |
750,001–1,000,000 | 20 |
1,000,001–2,000,000 | 25 |
2,000,001–5,000,000 | 30 |
5,000,001 and more | 35 |
Reporting: A PND 90 income tax return is to be filed in person or online by the end of March of the year following the reporting one.
Also, for some types of income (reviewed annually; for example, income from rent, business, etc.), taxpayers need to file a semi-annual PND 94 return before the end of September.
The tax should be paid within the same period in person or online (details), though there is also an installment option.
Liability: Violations of the deadlines for filing returns and paying tax incur fines and penalties.
Useful links: PND 90 details; PND 90 online filing guide; FAQ and income tax by year.
VAT
Value-added tax (VAT, ภาษีมูลค่าเพิ่ม) is levied by those subject to it at the rates of 10% (currently reduced to 7% until September 30, 2023) and 0% (details). VAT is levied on the sale of goods and the provision of services, but a number of goods and services are exempt.
Taxpayers whose income from online sales of goods and/or services exceeds THB 1.8 million are subject to mandatory VAT registration.
To register for VAT, you need to have the required documents and submit the following:
Por.Por.01 VAT applications on paper to the local tax office or online.
· VAT applications (only for companies) to the Department of Business Development (งานกรมพัฒนาธุรกิจการค้า).
As a result, the taxpayer is issued a Por Por 20 VAT Registration Certificate.
Por Por 30 VAT returns need to be submitted monthly in person or online by the 15th day of the month following the reporting one.
Other reporting includes: sales tax, input tax, excise tax, more details here.
The tax must be paid within the same period in person or online (learn more).
Those who violate deadlines and/or registration rules are subject to penalties and additional charges.
Useful links: Sample VAT calculation; VAT responsibilities; tax invoice format; step-by-step instructions on filling out the VAT return and other reporting.
Specific business tax
Specific business tax (ภาษีธ ุรกิจเฉพาะ) is collected at fixed rates on the gross revenue of certain businesses (mainly in the financial sector) not subject to VAT, which are taxed at 0.01%–3% (details) + an additional 10% of the tax as municipality tax. A sample specific business tax calculation can be found here.
To register, submit a Phor.Thor.01 application within 30 days from the date of commencing the activities (more details). As a result, you get a Phor.Tor.20 registration certificate from the tax authority.
The reporting is done using the Por.Thor.40 form.
The tax is paid in person or online.
Violations incur penalties and additional charges.
Stamp duty
Stamp duty (อากรแสตมป์เป็) is levied on 28 different types of documents and instruments, including contracts, insurance policies, and so on. The stamp duty rate varies depending on the type of document, ranging from THB 1 to THB 1,000.
See here for exemptions from payment.
Stamp duty is paid in cash or when registering printed/electronic documents (in some of such cases, there is an online registration option).
There is both civil and criminal liability for violations.
Additional info
Official website of Thailand's Revenue Department.
General information on all types of taxes in Thailand.
Quick summary on taxation of influencers in Thailand.
Thai-based freelancers can make payments to bank accounts through Solar Staff (see here for a full list of methods). Important: The name of the bank account's beneficiary must match the name in the Solar Staff account.
Income received via Solar Staff is declared based on certificates and invoices, and in accordance with the Offer Agreement.
If you have any questions, get in touch via the chat in your Solar Staff account or email us at [email protected].