Tax basics for freelancers in Thailand
What the 3% withholding is, when you file, and when VAT registration kicks in
3 min read
This is general background, not personal tax advice. Talk to a registered accountant before making decisions that matter.
The 3% withholding
When you work for a company (a legal entity), it withholds 3% of your fee and remits it to the Revenue Department on your behalf.
Example: you agree ฿50,000, you receive ฿48,500, and the client gives you a withholding tax certificate (form 50 tawi).
Keep every one of these. At annual filing you offset them against the tax you owe. Plenty of freelancers forget to ask for the certificate — which means paying the same tax twice.
Individual clients don't withhold. You receive the full amount and are responsible for declaring it yourself.
When you file
- PND 90 — once a year, by the end of March, for the previous calendar year
- PND 94 — mid-year, by the end of September, covering the first half (only for certain income categories)
You can file online through the Revenue Department's website, which usually grants a few extra days.
Deducting expenses
Most freelance income falls under category 40(2) or 40(8), depending on the nature of the work. You have two options:
Standard deduction — simplest, no receipts needed, rate depends on the income category Actual expenses — requires receipts for everything, better if your costs are high (equipment, studio rent)
If you're starting out with modest costs, the standard deduction usually wins once you count the time it saves.
When VAT applies
Once revenue passes ฿1.8 million per year, you must register for VAT within 30 days.
After that you issue tax invoices, file PND 30 monthly, and charge clients 7% on top of your fee.
Many people register before hitting the threshold, because corporate clients often need a tax invoice for their own deductions.
What to do today
- Open a separate bank account for freelance income — it makes filing far easier
- Keep every 50 tawi certificate in one folder
- Set aside 15–20% of every payment for the year-end bill
- Above roughly ฿800,000 a year, get a regular accountant. It costs less than the penalties.
When VAT registration kicks in
Once income passes ฿1.8 million a year, you must register for VAT within 30 days. It is not optional.
After that you add 7% to your prices, file form PP.30 every month, and keep tax invoices for both what you sell and what you buy.
The upside people overlook: VAT you paid on purchases — a computer, software subscriptions — offsets the VAT you owe.
What to keep
Keep these for at least five years:
- Every withholding tax certificate (50 tawi)
- Receipts for work-related costs — computer, software, internet, travel to client meetings
- The contract or the exchange where price was agreed
The simplest system is to photograph every receipt immediately into a folder per month. Year-end then takes a few hours instead of a week.
Costs you can actually deduct
Commonly missed: home internet (apportioned to work use), training courses relevant to your trade, co-working fees, bank charges, and depreciation on equipment.
You need a receipt in your name, though. A transfer slip on its own is not enough.