Payroll for expat employees in Thailand: tax residency, the 180-day rule and foreign-sourced income in 2026

An expat employee in Thailand becomes a tax resident after spending 180 days or more in the country in a calendar year[1]. Residency changes less about monthly payroll than many founders expect, because the Revenue Department taxes both residents and non-residents on income from sources in Thailand, and salary for work performed in Thailand is generally Thai-source income. The main thing the 180-day rule decides is whether foreign-sourced income brought into Thailand is taxed.

Key takeaways

About the Author

This guide was prepared by Settlr Global's payroll and visa team under Managing Director Gagan Ajmani, who has 15+ years of regional experience across Southeast Asia. Settlr Global reports 200+ clients served and 300+ visas and work permits processed, so the team deals with the overlap between immigration days and payroll tax every week.

How the 180-day rule sets Thailand tax residency in 2026

Every expat payroll file starts with Thailand tax residency, because residency sets how wide the employee's Thai tax base is for the year.

The count is a simple sum:

Days present in 2026 = the days in each stay, added together. The Revenue Code does not say how part days count, so count both the arrival day and the departure day when a stay is close to the limit[1].

Take an expat with no earlier stays in 2026. Counting both the arrival day and the last day, an arrival on 5 July 2026 with a stay until 31 December gives 180 days, which makes them resident for 2026 on that count. An arrival on 6 July gives 179 days[2].

HR should record the arrival date and planned travel at onboarding. The day count should then be checked against passport entry and exit stamps each quarter.

Residency and monthly withholding on an expat's salary

For the employer, monthly withholding depends mainly on where the work is done. Residency plays a smaller part. According to the Revenue Department, the payer of employment income has to withhold tax at source, file a withholding return and submit the tax withheld.

A founder often reasons, "She will be here for under 180 days, so Thai withholding does not apply." That is incorrect. The 180-day test decides whether her foreign income is taxable in Thailand. Her Thai salary is taxable from the first payslip.

According to the Revenue Department, personal income tax rates are generally progressive, although a foreign High-Skilled Professional on a Long-Term Resident Visa employed by a qualifying company can have withholding reduced to 17%[4]. The schedule starts with a tax-free band for the lowest earners and rises to a top marginal rate of 35%.

Payroll should withhold on the full Thai-source salary from the first month. You can use the Payroll Tax Calculator to estimate the monthly deduction before the offer letter goes out.

Thai-source pay for expats

Because withholding follows where the work is done, payroll needs to know which payments belong in the Thai calculation. Split pay arrangements can miss offshore-paid bonuses that should be included in the Thai withholding calculation.

Some groups have the overseas parent recharge the expat's cost to a Thai affiliate. Payments between the two companies are taxed under separate rules. The Revenue Department's guide for foreign companies lists 15% on items such as professional fees and royalties, and 10% on dividends, which a tax treaty can reduce[6]. Its rulings have treated a recharged salary as pay from the Thai company[7]. A recharge does not remove the employee's personal tax on Thai-source pay.

At onboarding, the company should get a written list from the parent group of every payment the expat receives, who pays it and in which country. The portion for work in Thailand then goes into local payroll.

Foreign-sourced income for residents

Once an expat reaches 180 days in a tax year, income from outside Thailand that arises in that year can become taxable here when it is brought in[1]. According to the Revenue Department, a Thai tax resident pays personal income tax on Thai-source income and on the portion of foreign-sourced income that is brought into Thailand. Non-residents are taxed only on income from Thai sources. The Revenue Department's Q&A limits this to foreign income that arose from 1 January 2024 onward in a tax year of 180 days or more in Thailand[2].

Flows that commonly bring foreign income into Thailand include:

Thailand's tax treaties, such as those with Singapore and the United Kingdom, include tie-breaker tests, based on permanent home and vital interests, for people who count as resident in both countries[8].

The same day count applies to remote workers on the Destination Thailand Visa. A DTV holder who spends 180 days or more in Thailand in 2026 is a tax resident for that year, and under section 41 of the Revenue Code pay for work done in Thailand can be taxable wherever it is paid[1]. The DTV guide covers the visa itself, and the tax position should be planned at the same time.

Payroll does not see these flows. The employer should tell expat employees in writing that foreign income they bring into Thailand goes on their own annual return. When planning large transfers in, employees should check their residency status in the year the money was earned, because that year decides whether it is taxable when it arrives[2].

Running expat payroll in Thailand step by step

The day count, the source of each payment and monthly withholding all need to be set up when the expat joins. The following steps keep them consistent.

The Thailand Tax Calendar 2026 lists the monthly filing dates. Settlr Global's payroll outsourcing in Thailand covers gross-to-net calculation, PND.1 withholding computation and e-filing, social security and itemized payslips.

Paying an expat in Thailand without a Thai entity

The steps above assume a Thai company exists to withhold tax and file returns. An overseas business without one generally needs a local legal employer instead. An employer of record (EOR) in Thailand is a Thai company that becomes the worker's legal employer and runs payroll and withholding, while the client directs the day-to-day work.

Settlr Global's Employer of Record service has an Expat Hire plan from THB 10,999 and a Local Hire plan from THB 8,999 per employee per month. The first hire takes about 2 days. Clients can run EOR while their own company registration in Thailand is underway and move employees across later. Visa and work permit decisions rest with the Thai authorities.

To compare options, estimate EOR annual cost = N x E x 12, where N is the number of employees and E is the monthly fee. Set that against entity setup and accounting costs over 12 to 24 months.

Frequently asked questions

The Revenue Code counts the total period spent in Thailand in a tax year and does not say how part days count, so a cautious count includes both days.

Does a non-resident expat pay Thai tax on salary?

Yes, if the salary is for work done in Thailand, unless a tax treaty exempts a short stay paid by an employer that is not resident in Thailand[9].

Is foreign income taxed if it stays outside Thailand?

Generally not. The Revenue Department taxes a resident on the portion of foreign-sourced income that is brought into Thailand.

What is the top Thailand personal income tax rate in 2026?

The Revenue Department's personal income tax rates are progressive and reach a top rate of 35%.

Often yes. Treaties such as those with Singapore and the United Kingdom decide a dual resident's status through tie-breaker tests, starting with a permanent home and then the centre of vital interests. Check the treaty with the employee's home country.

Does an employer of record in Thailand handle expat withholding?

An EOR runs payroll and monthly withholding as the legal employer. The expat's foreign income and annual return generally remain the employee's responsibility.

About Settlr Global

Settlr Global is the operating arm of WOWS Global, a Singapore-incorporated corporate advisory and investment banking group, and an all-in-one platform for company setup, accounting and tax, payroll, visas and Employer of Record in Thailand. It brings those services under a single team, so founders do not have to coordinate separate local agencies. The platform has processed payroll and compliance work for 200+ clients across 15+ countries, from early-stage startups to established multinational enterprises. Its Employer of Record service lets companies hire in Thailand in about two days, with or without a local entity.

To set up expat payroll or a first EOR hire, contact Settlr Global's Bangkok team.

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