Section 40(2) covers income derived from a position or work performed, or from services rendered. A flat-rate expense deduction of 50% is allowed, but when combined with income under Section 40(1) the deduction may not exceed 100,000 baht (Section 42 bis). Section 40(6) covers income from liberal professions, namely law, the healing art, engineering, architecture, accountancy and fine arts. A flat-rate deduction of 60% is allowed for the healing art and fine arts, and 30% for the other liberal professions, with no cap on the amount; alternatively, expenses may be deducted as actually necessary and reasonable where it can be shown that they exceed those amounts (Royal Decree No. 11, Section 6, as amended by Royal Decree No. 803, applicable from income for the B.E. 2568 (2025) tax year).
Once freelance income exceeds 1.8 million baht a year, registering as a limited company often results in a lower overall tax burden, because the top corporate income tax rate is 20% whereas the top personal income tax rate is 35%. The operating costs of a juristic person must, however, also be taken into account.
Freelancers who choose to deduct actual expenses must keep clear expense documentation, such as receipts for software, work equipment, workspace rent and profession-related services. Personal expenses cannot be deducted, even if they are indirectly connected with the work.
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