Keywords: Personal Income Tax, Thailand, Teacher, Expatriate
In respect of the Article 21 of the Double Taxation Agreement (‘DTA’) between Thailand and the UK, the income earned by a UK national from a Thai educational institution shall be exempt from personal income tax (‘PIT’) if the period of employment does not exceed two years.
The Revenue Department has ruled that a UK expatriate teacher will be exempt from PIT if such a person is in Thailand for a period no longer than two years from first entering the country. After this two year period, if such a person returns to work in Thailand, he or she will be taxed as follows:
- If such work is not related to the previous work (i.e. the employment is not at the same school), the income earned in the first two years is exempted. All further income earned is taxable.
- If such work is related to the previous work, there is no PIT exemption and the income earned in the first two years will also be taxable.