Thailand Foreign Entertainer & Sport Persons Tax
Tax Insight | July 2009
Foreign entertainer and sport persons earning income from their performances in Thailand are subject to tax under the personal tax laws, and according to the progressive rates of tax in the personal income tax rates table (0-35%).
Assessable income includes not only the income amount that is paid in Thailand, but also any income amounts that are paid outside Thailand for the performance in Thailand, as well as any benefits that a promoter in Thailand may provide to the foreign entertainer or sports person, such as hotel accommodation and transportation costs.
Expenses can be claimed on the basis of expenses actually and necessarily incurred or on an unsubstantiated basis (at the rate of 60% of income up to Bt 300,00 and 40% of income over Bt 300,00, but not exceeding Bt 600,000 in total).
In the case of a foreign entertainer or sports person performing in a group or a team, the Thailand personal income tax is paid on the income earned by the group or team, but if an entertainer or sports person performing in a group or a team is individually hired, he or she is required to pay personal income tax on the individually hired income.
Foreign entertainers and sports persons should note that Thailand's tax laws impose strict withholding tax requirements on payers of income, and from the amount of the income that is paid to a foreign entertainer or sports person, the promoter or payer of the income must deduct the tax that is payable in Thailand.
Foreign entertainers and sports persons should also note that none of Thailand's Double Tax Treaties mitigate or reduce the personal income tax on payments made to them by a promoter or payer in Thailand.
But the double tax treaties that Thailand has entered into with Australia, Canada, France, Germany, Japan, the UK and the US prescribe that, when income for a performance does not accrue to an entertainer or sports person personally, but accrues to another person - such as a performance company or a star company - then Thailand has taxing rights over the income that accrues to the performance or star company (not over the income of the entertainer or sports person personally).
Foreign entertainers and sports persons from the countries mentioned should therefore note that if the income for performances in Thailand accrues to a performance or star company, then the income should be subject to tax in Thailand according to the corporate income tax laws (not the personal income tax laws), which are as follows:
This Tax Insight Article is general information only. It should not be used to determine any matter without consulting with an experienced Thailand tax advisor.