Personal Income Tax

Individuals 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.

Keywords: Mazars, Thailand, Tax, Payroll, Personal Income Tax, Social Security Fund, Revenue Department

02 May 2018

A resident will be taxable on income from all 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.

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.

Tax rates

The tax rates in 2018 for employment income and hire of work are as follows:

Taxable income (Baht) Tax rate %
1-150,000 Exempt
150,001-300,000 5%
300,001-500,000 10%
500,001-750,000 15%
750,001-1,000,000 20%
1,000,001-2,000,000 25%
2,000,001-5,000,000 30%
5,000,001 and Over 35%

Allowances

The amount of assessable taxable income is net of allowances:

Type of allowance Rate
Deductible expenses for income 50% of income (capped at 100,000 baht)
Personal allowance 60,000 baht
Spouse (with no income) 60,000 Baht

Child (with income not exceeding 30,000 baht)

(under 20 years of age, regardless of whether he or she is studying, or under 25 years of age but he or she must be studying at a university, uncapped number of natural children)

30,000 Baht per each child
Parent (each) 30,000 Baht per each parent
Health insurance premiums paid by the taxpayer Amount actually paid, but not exceeding 15,000 baht
Life insurance premiums paid by the taxpayer

Amount actually paid, but not exceeding 100,000 baht

When including the allowance for health insurance premiums as well as for saving accounts with attached life insurance policies cannot be more than 100,000 baht

Provident fund contributions (PVF) and retired mutual fund (RMF) Up to a maximum of 500,000 Baht but not exceeding 15% of income
Long term equity fund (LTF) 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.

There is a double deduction allowed for donations to educational organisations, but again not exceeding 10% of income.

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 per month.

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. The employee is allowed to make higher contributions than his or her employer (up to 15%).

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 On or before 7th of the following month
SPS 1 -10 Social security fund On or before 15th of the following month
for both employee and employer
Provident fund 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

The Revenue Department has announced that companies registered for e-filing with have an extra eight days to file all tax returns. This incentive will run until January 2019.

  • PND.1 to be filed on or before 15th of the month
  • PND.90 and PND.91 to be filed within 8th April

For more information, please visit the Revenue Department website.

 

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