For Russians and other foreigners living or working in Thailand, understanding the tax system is key to a trouble-free life. In 2025, the rules remain stable but have important nuances depending on income type. Let’s break down who pays what and how.
Income Tax: How It’s Calculated and Who Pays
If you’re officially employed in Thailand, you fall under the personal income tax system. For Russian citizens, the minimum wage is 35,000 THB per month (50,000 THB for Europeans, depending on nationality).
Tax is calculated on a progressive scale. With a monthly income of 35,000 THB, the annual tax will be at least 10,500 THB. It’s withheld monthly in equal installments — your employer acts as the tax agent and remits payments to the government.
If your income is below 35,000 THB, tax is still calculated based on the minimum threshold — this can be a point of negotiation with your employer.
Refund of Overpaid Tax
At the end of the tax year (March 31), you can file a tax return. If the withheld tax exceeds your actual liability, you can claim a refund. For example, after applying deductions (social, education), your tax may be lower than what was withheld.
Rental Income
If you rent out property in Thailand, the income is taxable. However, the tax authority rarely investigates individual landlords with one or two units and cash payments from private tenants.
The situation changes if the tenant is a legal entity (company). In this case:
- the tenant must withhold 5% of the rent as advance tax;
- this amount is paid to the tax authority;
- you file a return at year-end to calculate final tax.
Example: Rent is 30,000 THB/month. Annual income: 360,000 THB. After deductions (60,000 + 30,000), taxable income is 270,000 THB. Tax due: 6,000 THB. Amount withheld: 18,000 THB. Refund: 12,000 THB.
Freelancing: Risks and Reality
Freelancing is the grayest area. Theoretically, all income in Thailand is taxable. However, foreigners cannot work without a work permit, and there is no freelance permit for foreigners.
Filing a return means admitting to working without legal status, which could lead to:
- fines;
- deportation;
- entry bans.
Therefore, most freelancers remain 'off the radar' and do not declare income. Even officially employed foreigners cannot legally earn extra income outside their job scope.
Filing in Russia: Don’t Forget Your Home Country
If you are a tax resident of Russia (spend fewer than 183 days in Thailand per year), you must declare all foreign income, including earnings from Thailand. This is required by the Russian Federal Tax Service (FTS).
Even if Thailand doesn’t require reporting, Russia may demand personal income tax at 13% (or 15% for high earners).
You should also file Form 8-NDFL (foreign assets report) if you own property, bank accounts, or businesses abroad.
When Do You Become a Thai Tax Resident?
As of 2025, Thailand considers you a tax resident if you stay in the country for 180 days or more in a calendar year. This grants access to deductions and filing rights, but also requires paying tax on worldwide income earned during that period.
Conclusions: What to Do?
- Officially employed — your employer pays taxes; you can claim a refund if overpaid.
- Landlords — if renting to companies, pay tax via withholding and file a return. From private tenants — risks are minimal.
- Freelancers — declaring income carries risk; most choose not to 'go public'.
- Russian citizens — remember your obligations to the FTS, even if living in Thailand.
Conclusion
Thailand’s tax system is logical, but its application for foreigners is a balance between compliance and reality. It’s best to consult a local accountant and understand the risks you’re willing to take. Stay informed, pay where required, and remember: peace of mind is an expat’s best asset.
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