MBMG
L AW O F F I C E
Legal Update Dec 2010
Personal Income Tax in Thailand Personal Income Tax (PIT) is a direct tax levied on the income of a person. A person means an individual, an ordinary partnership, a non-juristic body of persons, a deceased person and an undivided estate. In general, a person liable to PIT has to compute his/her tax liability, file a tax return and pay the relevant tax, if any, accordingly on a calendar year basis.
1. Resident or Non-Resident The first thing to consider for a foreigner based in Thailand is whether your status is a "resident" or "non-resident" for tax purposes. "Resident" means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand on a cash basis, regardless where the money is paid, as well as on the portion of income from foreign sources that is brought into Thailand in the same calendar year. A non-resident is, however, subject to tax only on income from sources in Thailand. Therefore, if you are resident in Thailand, you are liable to pay tax in Thailand on your Worldwide Income. Whereas if you are non-resident in Thailand you are only liable to pay tax on income from sources in Thailand.
2. Tax Base Personal Income Tax Base = assessable income - deductions - allowances 2.1 Deductions Allowed for PIT Type of Income
Deductions
40(1),(2) Income from employment
40% but not exceeding 60,000 baht
40(3) Income received from copyright
40% but not exceeding 60,000 baht
40(4) Income from dividend and interest
Do not allowed
40(5) Income from letting out of property on hire 1) Building and wharves
30%
2) Agricultural land
20%
3) All other types of land
15%
4) Vehicles
30%
5) Any other type of property
10%
40(6) Income from liberal professions
30% except for the medical profession where 60% is allowed
40(7) Income derived from contract of work whereby the contractor provides essential materials besides tools
actual expense or 70%
40(8) Income derived from business, commerce, agriculture, industry, transport, or any other activities not specified above
actual expense or 65% - 85% depending on the types of income
MBMG Law Brief Update 2.2 Allowances
Dec 2010
3. Tax Rate
Type of Allowances
Amount Net Income
Marginal Tax Taxable Income Rate
Tax Amount
Accumulated Tax
Personal allowance - Single taxpayer
30,000 Baht for the taxpayer
- Non-juristic partnership or body of persons
30,000 for each partner but not exceeding 60,000 Baht in total
Spouse allowance
30,000 Baht
Child allowance (children under 25 years of age and studying at educational institution, or a minor, or an adjusted incompetent or quasi-incompetent person)
15,000 Baht each (limited to three children)
Education (additional allowance for child studying in educational institution in Thailand)
2,000 Baht each child
Parents allowance
30,000 for each of taxpayer's and spouse's parents if such parent is above 60 years old and earns less than 30,000 Baht
1 - 150,000
150,000
Exempt
-
-
150,001 - 500,000
350,000
10
35,000
35,000
500,001 - 1,000,000
500,000
20
100,000
135,000
1,000,001 - 4,000,000
3,000,000
30
900,000
1,035,000
4,000,001 onward
37
Make sure you speak with your tax advisor so to have PIT tax planning in place before 31 Dec for filing by 31 March of the following year.
Life insurance premium paid by taxpayer or spouse
Amount actually paid but not exceeding100,000 Baht each
Parents's life insurance premium paid by taxpayer or spouse
15,000 for each of taxpayer's and spouse's parents if such parent is above 60 years old and earns less than 30,000 Baht
Approved provident fund contributions paid by taxpayer or spouse
Amount actually paid at the rate not more than 15% of income, but not exceeding 500,000 Baht
Long term fund (LTF)
Amount actually paid at the rate not more than 15% of income, but not exceeding 500,000 Baht and should be held not less than 5 calendar years
Home mortgage interest
Amount actually paid but not exceeding 100,000 Baht each
Social security fund paid by taxpayer or spouse
Amount actually paid each
Domestic travelling expenses
Amount actually paid during 8 June 2010- 31 December 2010 to authorized guide or hotel in Thailand but not exceeding 15,000 Baht
Charitable contributions
Amount actually donated but not exceeding 10% of the income after standard deductions and the above allowances
MBMG Accounting offer a full range of all tax, accounting and auditing services and can help you with your Personal Income Tax reporting. Any queries you may have or for further information needed, please do not hesitate to contact Miss Usa Suwanchatree at: MBMG International 75/56 Ocean Tower II, 26th Floor, Klongtoey Nua, Wattana, Bangkok 10110 Thailand Tel: (662) 665 2534-9 Fax: (662) 665 2996 Email: sa@mbmg-international.com
MBMG
L AW O F F I C E
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