Changes in Tax Filing Options for Married Couples

As a result of the Emergency Decree Amending the Revenue Code (No. 18), the Revenue Department has amended the existing rules on personal income tax (‘PIT’) pertaining to married couples’ tax filing for the 2012 tax year and subsequent years.

Keywords: Mazars, Thailand, Tax, Revenue Department, Personal Income Tax, Married Couples

22 March 2013

1) Allowance for home mortgage interest

Where a husband and wife have separate mortgages, they are eligible to each claim the allowance on the home mortgage interest paid in the year up to but not exceeding 100,000 Baht, regardless of whether or not they were married for the whole year.

Notification of the Director-General of Revenue on Income Tax No. 224, No. 225, and No. 226.

Previously, the husband and wife were allowed to claim only half of the home mortgage interest in their own separate returns, but the amount of interest allowed could not exceed 100,000 Baht in total.

2) Tax exemption on interest income from saving accounts

Interest income is eligible for PIT exemption under the following legislations:

2.1) Royal Decree No. 301: interest on a monthly deposit not exceeding 25,000 Baht a month for an uninterrupted period of not less than 24 months with a bank in Thailand or a saving co-operative in Thailand; or

2.2) Ministerial Regulation No. 126, Clause 2 (38): interest not exceeding 20,000 Baht a year on deposits in a saving account with a bank in Thailand; or

2.3) Ministerial Regulation No. 126, Clause 2 (69): interest not exceeding 30,000 Baht a year on a fixed deposit account with a bank in Thailand, provided that the term of deposit shall not be less than 1 year and the depositor shall receive such interest once he or she obtains the age of 55.

If the husband and wife are joint depositors and unable to determine how much of the deposit belongs to each of them individually, half of the interest income shall be treated as belonging to each of them equally.

Notification of the Director-General of Revenue on Income Tax No.227, No.228 and No.229.

Previously, all the interest income would be treated as belonging to the husband, regardless of whether or not they were joint or separate depositors.

3) Tax exemption on income derived by elderly persons

A husband and wife, at least 65 years of age, are each eligible to a tax exemption on their own income derived up to 195,000 Baht per annum.

Notification of the Director-General of Revenue on Income Tax No.231.

4) Tax exemption on income derived by disabled persons

A disabled husband and wife, both less than 65 years of age are each eligible to a tax exemption on their own income derived up to 195,000 Baht per annum.

Notification of the Director-General of Revenue on Income Tax No.232.

5) Tax credit for first home buyers

In the case where the husband and wife each earn his/her own income and each purchase his/her own first home which is a building with land or a condominium unit to use as a place of residence and costs not more than 5,000,000 Baht, they shall each be fully eligible to a tax credit of 10% on the cost of his/her own property (such credit shall be spread over five consecutive years).

Notification of the Director-General of Revenue on Income Tax No.233.

6) Allowance for parental health insurance premiums

In the case where the husband and wife each earn his/her own income, they are both eligible for the full allowance on any health insurance up to 15,000 Baht paid for his/her own parents.

Notification of the Director-General of Revenue on Income Tax No.234.

7) Allowance for life insurance premiums

In the case where the husband and wife each earn his/her own income, they are both eligible for the full allowance on his/her own life insurance premiums paid but not exceeding 100,000 Baht each.

Notification of the Director-General of Revenue on Income Tax No.235.

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