Negative Income Tax to be applied for all Thai workers by 2027

All Thai citizens who are part of the national workforce will be legally required to submit their Personal Income Tax Form (PITF) to the Revenue Department annually, starting in 2027—regardless of how much they earn from salaries, wages, bonuses, pensions, or other forms of income.

Likewise, all Thai business operators will also be legally obliged to submit their Corporate Income Tax Form (CITF), according to a new plan announced by the government this week.

Suksit Srichomkwan, Deputy Secretary-General to the Prime Minister, said that the new tax reform initiative, known as the Negative Income Tax (NIT) system, will serve as a practical tool for implementing the upcoming universal welfare program.

He explained that the NIT system, developed as part of the National Data Lake project under the Finance Ministry, will be used to accurately classify and screen Thai citizens who are truly eligible for the newly introduced universal welfare program—with comprehensive coverage and no redundancy.

He added that this will also be a highly cost-effective method for managing the government’s budget allocation and distribution each fiscal year. It will help reduce social disparities and encourage all income earners—both in the formal and informal sectors—to enter the national tax system.

Under the NIT system, individuals earning a net annual income of no more than 150,000 baht will not only be exempt from paying tax but will also be fully eligible for benefits under the new universal welfare program.

Those earning above that threshold will be taxed at progressive rates, as follows:

5% for net incomes of 150,001–300,000 baht per year

10% for 300,001–500,000 baht

15% for 500,001–750,000 baht

20% for 750,001–1,000,000 baht

25% for 1,000,001–2,000,000 baht

30% for 2,000,001–5,000,000 baht

35% for incomes exceeding 5,000,000 baht per year

Suksit stated, however, that the same tax law, including deductions for net income at all levels, will be universally applied to all individuals and business entities submitting PITF and CITF.