The Royal Thai Government derives revenue predominantly from taxes the most important of which are; income tax, value added tax, excise tax, and import duties.
      
       Personal income tax is a tax on an individual’s income whilst residing in Thailand and is imposed at progressive rates of between 5 and 37% on net income. An individual’s net income is determined by the deduction of expenses and personal allowances from assessable income as specified by the Revenue Code. In addition, income from many financial assets is subject to a final withholding tax at source, at the rate of 15 percent.
      
       The other type of income tax is the corporate income tax. In general, companies and registered partnerships are taxed at the rate of 30 percent on their net profits. Reduced rates are permissible for Small and medium-sized Enterprises (SMEs) and certain other qualified organisations.
 
       Thailand has two types of sales taxes. The value added tax (VAT) is imposed on a wide variety of goods and services supplied in Thailand and on imports at a single rate of 7 percent. Exported goods and services are also taxable but some at a zero percent rate, dependant upon the destination. The other type of sales tax is the excise tax that is selectively imposed on a number of commodities. Excisable items are also liable for VAT.
    
       Import duties are collected from the cargo, insurance, and freight (CIF) price of imported goods. The tariff structure is classified according to the Harmonized System and the rates range generally between 0-10 percent with the exception of automobiles which attract a rate of 80 percent.