Self-Employed Tax in Thailand

What income tax rates apply to self-employed individuals in Thailand?

Self-employed individuals and freelancers in Thailand pay personal income tax (PIT) under the Revenue Code (Sections 40-64), administered by the Revenue Department. Tax is assessed on net assessable income after allowable deductions and personal allowances, at eight progressive bands: 0% on the first THB 150,000; 5% on THB 150,001-300,000; 10% on THB 300,001-500,000; 15% on THB 500,001-750,000; 20% on THB 750,001-1,000,000; 25% on THB 1,000,001-2,000,000; 30% on THB 2,000,001-5,000,000; and 35% on income above THB 5,000,000.[1] All self-employed income falls under one of the Section 40 categories; the applicable category determines both the deduction rate available and any withholding tax obligations. Consult the Thailand country overview for context on the broader Thai tax framework.

How does the Section 40 expense deduction work?

The Revenue Code classifies self-employed income into eight categories under Section 40, each carrying a different standard expense-deduction rate. The self-employed may choose between the standard (flat-rate) deduction or actual documented expenses, whichever is more favourable.[2]

The most common categories for freelancers and independent contractors:

• Section 40(1)/(2) - Employment-type income and income from services performed under contract (not employer-employee): standard deduction 50% of income, capped at THB 100,000 per year.[2]
• Section 40(6) - Liberal professions (medical, legal, engineering, architecture, accounting, fine arts): standard deduction 60% for medical practice, fine arts, and similar vocations; 30% for law, engineering, architecture, and accounting.[2]
• Section 40(7) - Construction and similar contractor work: standard deduction 60%.
• Section 40(8) - Trade, commerce, agriculture, industry, and other business activity not in categories 1-7: standard deduction of 40% or 60% depending on business type, per Royal Decree No. 629 (2017).[2]

For Section 40(8) service-based businesses, the 60% flat deduction is typically available, and unlike employment income under Section 40(1)/(2), there is no THB 100,000 annual cap. Where actual operating costs - premises rent, materials, staff wages, equipment - exceed the standard deduction, electing actual expenses requires supporting records retained for five years.[2]

When must PND 94 (half-year) and PND 90 (annual) returns be filed?

Self-employed individuals earning income under Sections 40(5) through 40(8) are required to file a half-year return (Por.Ngor.Dor. 94 / PND 94) covering income earned from January through June. The filing threshold is THB 30,000 for a single filer and THB 60,000 for a married joint filer.[3] The deadline is 30 September (paper) or 8 October (e-filing through the Revenue Department's e-Filing system). Tax paid with the PND 94 is credited against the full-year liability on the annual return.

The annual personal income tax return for all income types is PND 90, due 31 March of the following year, or 8 April for electronic submission.[3] Individuals with employment income only file PND 91 instead. All WHT returns have been required to be filed electronically since 1 January 2025.[4] Late filing carries interest at 1.5% per month on unpaid tax, plus administrative penalties.

When is VAT registration required?

Any self-employed individual or business supplying goods or services in Thailand with aggregate annual turnover exceeding THB 1.8 million must register for Value Added Tax within 30 days of crossing the threshold.[5] The current VAT rate is 7%, reduced from the statutory 10% rate by Royal Decree; this reduced rate has been continuously renewed and is in effect until 30 September 2026.[5]

Voluntary registration is permitted below the threshold, which can be useful for businesses with significant input-tax costs or those supplying to VAT-registered businesses that want to reclaim input credit. Exempt supplies - including most healthcare, education, and basic financial services - fall outside the VAT framework. Monthly VAT returns are due within 15 days of the following month (extended to the 23rd for e-filing).

What Social Security obligations apply to the self-employed?

The Social Security Act 1990, administered by the Social Security Office (SSO), covers employed workers under Section 33. The self-employed are not compulsorily enrolled but may join on a voluntary basis under two sections:[6]

Section 39 is available to individuals who previously held Section 33 coverage (employed) and wish to continue their social security protection after leaving employment. Contributions are fixed at THB 432 per month (9% of the fixed base wage of THB 4,800). Benefits include sickness, disability, maternity, child support, and old-age pension - all Section 33 protections except unemployment insurance.

Section 40 is open to all self-employed individuals who have never been or are not currently covered under Section 33. Three plans are available: Plan 1 (THB 70/month) covering three benefit categories; Plan 2 (THB 100/month) covering four categories; and Plan 3 (THB 300/month) covering five categories including old-age pension savings.[6] Section 40 contributions made are deductible when calculating assessable income.

How does withholding tax on professional fees work?

When a Thai business or juristic person pays fees for services to a self-employed individual, it is required under Sections 50-53 of the Revenue Code to withhold tax at source and remit it to the Revenue Department. For professional fees paid to Thai residents (including freelancers under Section 40(2) and 40(6)), the standard withholding rate is 3%.[4] From 1 January 2023 through 31 December 2025, a reduced 1% withholding rate applies to eligible payments made through the Revenue Department's electronic withholding tax system (e-Withholding).[4]

The payer must issue a withholding tax certificate (Por.Ngor.Dor. 3 for individual payees) to the self-employed recipient. This certificate is then used as a tax credit when the recipient files the annual PND 90 or half-year PND 94 return. If the withholding tax overstates the actual annual tax liability, the excess is refundable. Non-residents receiving professional fees in Thailand are subject to 15% final withholding tax unless reduced by a Double Tax Agreement.

Understanding these mechanics is a starting point, not a substitute for personalised guidance. Income mix, deduction eligibility, residency status, and any applicable Double Tax Agreement can all materially alter the outcome. A qualified tax professional registered with the Thai Federation of Accounting Professions or a licensed Thai tax professional familiar with Revenue Department practice can review your specific situation and help determine which deduction method and filing approach fits your circumstances. The Thailand country overview covers broader context for Thailand's overall tax environment.