Personal Income Tax in Thailand - Mazars - Thailand
Personal Income Tax in Thailand
Taxable income covers both cash and benefits in kind and includes income from employment, hire of work, receipts from copyright, interest, dividends, capital gains and the letting of property.
Persons liable to pay tax on their income are classified as either ‘resident’ or ‘non-resident’. A resident is any person living in Thailand for a cumulative 180 days or more in the calendar year.
A resident will be taxable on income from sources in Thailand on a cash basis regardless of where the money is paid, and on the portion of income that is brought into Thailand in the same year that it is earned.
A non-resident is only taxable on income from sources in Thailand.
Tax rates
The tax rates in 2009 for employment income and hire of work are as follows:
| Taxable income (Baht) | Tax rate % |
| 1-150,000 | Exempt |
| 150,001-500,000 | 10% |
| 500,001-1,000,000 | 20% |
| 1,000,001-4,000,000 | 30% |
| 4,000,001 and Over | 37% |
Allowances
The amount of assessable taxable income is net of allowances:
| Type of allowance | Rate |
| Income from employment | 40% up to a maximum of 60,000 Baht |
| Personal | 30,000 Baht |
| Spouse (with no income) | 30,000 Baht |
| Child (under 25 years of age, limited to 3 children) | 15,000 Baht |
| Education allowance for a child studying in Thailand | 2,000 Baht |
| Parent (each) | 30,000 Baht |
| Life insurance premium paid by tax payer or spouse | Amount actually paid but not exceeding 100,000 Baht |
| Provident fund contributions and retired mutual fund | Up to a maximum of 500,000 Baht but not exceeding 15% of income |
| Long term equity fund | Up to a maximum of 500,000 Baht but not exceeding 15% of income |
| Home mortgage interest | Amount actually paid but not exceeding 100,000 Baht |
| Charitable contributions | Amount actually donated but not exceeding 10% of income after standard deductions and allowances |
Notes:
The above list is not definitive and allowances on specific classes of income may differ.
Social Security Fund and Provident Fund
Employees and employers are required to contribute to a Social Security Fund (‘SSF’) being 5% of salary up to a maximum of 750 Baht. During the period July to December 2009, the contribution rate has been temporarily reduced from 5% to 3% of salary (up to a maximum 450 Baht).
A Provident Fund is a managed fund into which voluntary contributions from both the employer and employee are made. The contribution can range between 2% to 15% of the monthly remuneration, under the condition that the employer’s contribution must not be less than the employee’s contribution.
Payments and Forms
The employer is responsible for the completion and submission of the PND 1 and for related withholding tax, social security fund deductions and provident fund contributions, where applicable. Responsibility for the completion and submission of the PND 90 or 91 rests with the employee.
| Form | Payment | Submission and payment deadline |
| PND 1 | Personal income tax withheld from employees | Within the 7th of the following month |
| SPS 1 -10 |
Social security fund Provident fund |
Within the 15th of the following month for both employee and employer The contributions must be made within 3 days of the salary being paid |
| PND 90 or 91 | Personal income tax | Within the last day of March following the taxable year end |
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