Personal income tax — business income (Section 40(8), 60% standard deduction)
activeSole proprietorWhat you pay
- Standard expense deduction (60% of revenue, Section 40(8)) — 60% of revenue (a deduction that lowers the tax base, not a payment)
- Personal income tax (progressive 5–35%) — progressive on profit (allowance 60,000): 0% up to 150,000, 5% up to 300,000, 10% up to 500,000, 15% up to 750,000, 20% up to 1,000,000, 25% up to 2,000,000, 30% up to 4,000,000, 35% above
Eligibility
- Requires tax residency
- For a self-employed person whose income qualifies as business/commercial income under Section 40(8) of the Revenue Code (the route most solo operators use when running the activity as a business). A 60% standard expense deduction may be claimed without substantiation, or actual expenses with records. Social security is voluntary for the self-employed (Section 40, 70–300 THB/month) and is not included. Tax residency = 180+ days in the calendar year; a resident is taxed on Thai-source income and on foreign-source income that is remitted to Thailand.
Net income examples
| Gross/year | Net/year | Burden |
|---|---|---|
| 30,000 EUR | 29,550 EUR | 1.5% |
| 60,000 EUR | 57,754 EUR | 3.7% |
| 120,000 EUR | 111,950 EUR | 6.7% |
Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2024.
Models the standard PIT with the 60% Section 40(8) standard deduction, which is the most favourable ordinary route for a self-employed service operator. Assumes the income is assessable in Thailand (Thai-source, or foreign-source remitted in the same year). A DTV/tourist resident who keeps foreign income offshore and does not remit it in the year earned generally owes no Thai PIT on it under the remittance rule — that is a structuring choice, not a scheme. Only the 60,000 personal allowance is modeled; further allowances (spouse 60,000, children 30,000 each, provident-fund, insurance, mortgage, easy-e-Receipt, etc.) would lower the burden and are not modeled. Voluntary Section 40 social security (70–300 THB/month) excluded. VAT registration is required only above 1.8M THB of Thai-source taxable turnover and does not apply to services rendered to foreign clients/consumed abroad. Bracket table per the Revenue Department: over 4,000,000 THB at 35% (some advisory summaries show 2M–5M/over-5M — the €60k example sits in the 25% band so is unaffected).