Thai Tax structure updated Feb 2012 : personal income tax

If you working in Thailand you have to pay tax base on your salary or your minimum salary relate with your nationality TAXABLE INCOME = Assessable Income - deductions - allowances

Deductions allowed for the calculation of Personal income tax

Type of Income Deduction a. Income from employment b. Income received from copyright c. Income from letting out of property on hire     1) Building and wharves     2) Agricultural land     3) All other types of land     4) Vehicles     5) Any other type of property d. Income from liberal professions e. Income derived from contract of work whereby the contractor provides essential materials besides tools f. Income derived from business, commerce, agriculture, industry, transport, or any other activities not specified in a. to e. 40% but not exceeding 60,000 baht 40% but not exceeding 60,000 baht 30% 20% 15% 30% 10% 30% except for the medical profession where 60% is allowed actual expense or 70% actual expense or 65% - 85% depending on the types of income

Allowances (Exemptions) allowedfor the calculation of Personal income tax

Types of Allowances Amount Personal allowance-  Single taxpayer-  Undivided estate-  Non-juristic partnership or body of personsSpouse allowanceChild allowance (child under 25 years of age and studying at educational institution, or a minor, or an adjusted incompetent or quasi-incompetent person) 30,000 baht for the taxpayer30,000 baht for the taxpayer’s spouse30,000 baht for each partner but not exceeding 60,000 baht in total30,000 baht15,000 baht each (limited to three children) Education (additional allowance for child studying in educational institution in Thailand)Parents allowanceLife insurance premium paid by taxpayer or spouseApproved provident fund contributions paid by taxpayer or spouseLong term equity fund 2,000 baht each child30,000 baht for each of taxpayer’s and spouse’s parents if such parent is above 60 years old and earns less than 30,000 bahtAmount actually paid but not exceeding 100,000 baht eachAmount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 bahtAmount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht Home mortgage interestSocial insurance contributionspaid by taxpayer or spouseCharitable contributions Amount actually paid but not exceeding 100,000 bahtAmount actually paid eachAmount actually donated but not exceeding 10% of the income after standard deductions and the above allowances

Source: Revenue Department; Thailand (www.rd.go.th) Tax Credit for dividends Any taxpayer who domiciles in Thailand and receives dividends from a juristic company or partnership incorporated in Thailand is entitled to a tax credit of 3/7 of the amount of dividends received. In computing assessable income, taxpayer shall gross up his dividends by the amount of the tax credit received. The amount of tax credit is creditable against his tax liability.  Progressive Tax Rates Personal income tax rates applicable to taxable income are as follows.

Tax rates of the Personal Income Tax

Taxable Income (baht) arginal Taxable income (baht) Tax Rate (%) 0 - 150,000 (2008 onwards) 150,000 Exempt 150,001 - 500,000 350,000 10 500,001 - 1,000,000 500,000 20 1,000,001 - 4,000,000 3,000,000 30 4,000,001 and over 37