How Do Thailand LTR-Highly Skilled Visa Holders Pay Tax in Thailand?

Thailand has long been a captivating destination for global citizens, renowned for its vibrant culture, stunning landscapes, and thriving economy. In a strategic move to further bolster its position as a regional hub for talent and investment, the Thai government introduced the Long-Term Resident (LTR) Visa program. Among its four distinct categories, the LTR-Highly Skilled Professional Visa offers a particularly attractive proposition: a special 17% flat personal income tax (PIT) rate. This significant tax incentive aims to draw top-tier foreign professionals to contribute their expertise to Thailand’s targeted industries.

To attract highly skilled foreign professionals, the Thai Government offers a special 17 % personal income tax (PIT) rate to holders of the Thailand Long‑Term Resident (LTR) Visa category Highly skilled who work in targeted industries promoted by the Board of Investment (BOI). This article explains a practical guide to Thailand’s 17% flat personal-income-tax incentive, which types of income qualify, how employers should withhold tax, and the compliance rules that both employees and companies must follow in order to keep the incentive.

Who Qualifies for the 17% Flat PIT Rate?

The preferential 17% PIT rate is exclusively available to foreign individuals who hold the Thailand LTR Visa under the “Highly Skilled Professional” category. This is not a universal benefit for all LTR Visa holders; other categories, such as Wealthy Global Citizens or Work-from-Thailand Professionals, enjoy different tax exemptions, typically on foreign-sourced income brought into Thailand.

To qualify for this reduced tax rate, the Highly Skilled Professional must be employed by a company operating within one of Thailand’s targeted industries promoted by the Board of Investment (BOI). These industries are strategically identified by the Thai government as crucial for the nation’s economic development and technological advancement. Examples often include sectors like automotive, electronics, biotechnology, digital, medical, and aviation, among others. The specific list of targeted industries and required special expertise is regularly updated by the BOI, making it essential to verify the latest regulations.

Furthermore, the income subject to this 17% rate must be “Thai-sourced income” derived from employment within Thailand. This primarily refers to assessable income under Section 40 (1) of the Thai Revenue Code, which encompasses salary, wages, bonuses, and other emoluments received from an employer in Thailand for services rendered in the Kingdom.

Tax Privilege for Foreign Experts under Thailand LTR Visa

Foreigners who hold a Thai LTR Visa under Highly skilled category can enjoy a reduced PIT (Personal Income Tax) rate if they are employed by a company that meet the qualification in a targeted industry and earn qualifying Thai‑sourced income.

Qualifying Income Categories

 Eligibility Rules

To lock‑in the 17 % rate, all of the following conditions must be met:

1. Employment contract – The individual must be an employee of a company in the targeted industry and obtained LTR – Highly Skilled
2. Employer notification – The company must notify the Revenue Department of the employee’s name as soon as they receiving the LTR-Visa but no later than the last day of the first tax year in which the incentive is claimed.
3. Section 40 (1) income – The employee must earn employment income.
4. Timely filing – The employee must submit the special annual return Form P.N.D. 95 within the statutory deadline.

Failure to satisfy any requirement means the 17 % rate is lost for that tax year.

Key Takeaway

The 17 % flat PIT rate is a valuable incentive for foreign LTR Visa holders working in Thailand’s targeted industries, but it comes with strict conditions. Both the employee and the employer must handle withholding, filings, and notifications precisely to preserve the benefit. By understanding and meticulously adhering to these guidelines, Thailand LTR-Highly Skilled Visa holders can confidently enjoy the economic benefits of their Long Term Residency in Thailand, contributing their skills while benefiting from a favorable tax environment.

When in doubt, seeking professional tax advice is highly recommended. Tax laws can be complex and are subject to interpretation and updates. A qualified tax advisor can provide tailored guidance, ensure full compliance with the Thai Revenue Code, and help both employees and companies navigate the specific requirements to preserve this valuable preferential rate. Contact us if you would like to book a consultation with our firm.

Disclaimer: The content on this website is provided for general informational purposes and should not be interpreted as legal, financial, or professional advice. While we make every effort to ensure the information is accurate and current, some details may be subject to change or may not be fully up to date. We do not accept liability for any actions taken based on the information presented.