Thailand to Mandate Tax Declarations for All Citizens by 2027
In a move set to overhaul Thailand’s welfare and tax system, the Ministry of Finance has announced that from 2027, every Thai citizen must file a personal income tax return. This initiative, part of a broader reform effort, aims to enhance fairness and efficiency under the new ‘Negative Income Tax’ scheme.
Lawaron Sangsanit, Permanent Secretary for Finance, emphasised that the policy does not imply all citizens will pay taxes. Instead, it ensures everyone declares their income. Those with an annual income below the taxable threshold of ฿150,000 will remain exempt from taxes but still qualify for government assistance.
“The system guarantees welfare benefits reach those genuinely in need while promoting fairness and transparency in tax collection,” Mr Lawaron explained.
At the core of this scheme is a newly developed ‘data lake’, consolidating information from various agencies into a single system. The Ministry aims to improve accuracy in income verification, reduce duplication across more than 20 welfare programmes, and eliminate gaps that previously allowed some higher-income earners to unjustly receive benefits.
According to the National Economic and Social Development Council, only 10.7 million of the 19 million registered workers in 2022 filed tax returns, with a mere 4.2 million earning enough to owe income tax. Concurrently, over 13 million Thais possess state welfare cards, many earning above the eligibility threshold.
Mr Lawaron noted, “This reform will broaden the taxpayer base by including moderate- and high-income earners who have not previously filed taxes. It also ensures that low-income earners previously excluded from welfare support are now accounted for.”
The reform impacts different income groups uniquely:
Current taxpayers will experience minimal changes, facing stricter income verification.
Moderate-income earners who have not filed before may start paying taxes if their income exceeds the threshold.
Low-income earners stand to gain the most with direct, targeted government support based on verified income data.
The Ministry reassured that the reform would not entail increased tax rates but would enhance revenue collection. Integration of data from the Revenue Department, Excise Department, and Customs Department aims to close loopholes that enable tax evasion.
Officials anticipate this reform will modernise Thailand’s tax and welfare systems, making them more transparent, equitable, and efficient.
“This signifies a transformation of Thailand’s tax system,” Mr Lawaron stated. “It’s about fairness—ensuring those who can afford to contribute do so, while those in need receive adequate support.”
Source: Adapted by ASEAN Now from The Phuket News 2025-08-19
