In this article, I am going to show you how to get your very own Thai tax ID to pay taxes in Thailand without having a work permit.
I’ll also explain in this article why you would want a Thai tax ID as a digital nomad.
Why would you want to pay income tax in the first place?
If you’re making serious amounts of money it’s a good idea to have a legitimate paper trail of your income.
I don’t enjoy paying taxes but it’s part of the game we play so I do what I can to play within the rules and minimize my tax burden.
Thailand has a double tax treaty with lots of countries including mine, which means if I pay income tax in Thailand, I am not required to pay income tax in England on that income remitted.
In Thailand, income remitted to Thailand during the same tax year it was earned is subject to taxation.
This means if you make $100,000 in personal income within their tax year but only bring $40,000 into Thailand through the use of ATMs or bank wire, you only pay tax on the $40,000 bought into the country.
If you bring the $60,000 earned into the country the following year, there is no taxation because you did not earn it in the current year of taxation.
What you need to get your very own Tax ID
There are two pieces of documents you need to be able to apply for a tax ID as a digital nomad, they are:
- Lease agreement (ideally 12 months)
You will also need a reason to apply for a Thai Tax ID. I told them that I live in Thailand and bring money into the country from overseas work which needs to be taxed.
Because I have spent more than 180 days in Thailand this year, it means by law I must pay Tax in Thailand If I don’t pay personal income tax in my home country.
Good luck explaining this to them at the tax office, I used Bangkok Helper who did all the translating for me and I just signed one form.
The entire process took less than an hour and I was given my Thai tax ID.
I did this on a tourist visa.
Which Tax office you need to go to
There are a number of tax offices in Bangkok but you cannot visit anyone.
Based on your current lease agreement and location will dictate which office you must visit to obtain your tax ID.
You will need to call them up (they won’t speak English), tell them about your situation and which office you should visit.
When do you pay your taxes as a digital nomad?
In Thailand the tax year starts on January 01 and finishes December 31st.
To pay your income tax, you need to submit your forms before March 31st the following year
I have yet to do this but I was told that I tell them how much money I remitted in Thailand with invoices and I will be taxed accordingly.
This is what you pay in income tax based on how much money you bring into the country:
Did I miss anything?
People will tell you that to obtain a tax ID as a digital nomad you need a work permit, that is not true.
In Thailand if you stay in the country for more than 180 days, you’re legally obliged to pay income tax on any money remitted into the country within that year.
Have a question or did I miss something out, leave a comment below!