Personal Income Tax Returns - New Guidelines for Spouses

On 19 September 2012, the Revenue Department issued a new guideline for a spouse filing a personal tax return for the fiscal year 2012 onwards.

Keywords: Mazars, Thailand, Tax, Personal Income Tax Returns, Revenue Department

It is first noted that all assessable income of the wife does not have to be treated as income of the husband. In the case where a husband and wife have their own income, each has to file a tax return and pay tax. If the husband and wife have income from a jointly owned business or it cannot be proven as the income of either party, the tax shall be filed in the name of the group of persons.

In order to calculate the tax of the husband or wife, the following examples demonstrate the treatment of various allowances:

Personal and spouse allowance (Section 47 (1) (a) and (b))

Case 1: Husband or wife has assessable income and the spouse does not have any income. The husband or wife can deduct his/her Baht 30,000 allowance and the Baht 30,000 spouse allowance (total Baht 60,000).

Case 2: Husband and wife have their own income. The personal allowance is Baht 30,000 each. The spouse allowance is prohibited.

Child allowance and education allowance (Section 47 (1) (c) and (f))

Case 1: Husband or wife has assessable income and the spouse does not have any income. The husband or wife having income can deduct the Baht 17,000 per child, being Baht 15,000 child allowance and Baht 2,000 education allowance.

Case 2: Husband and wife have their own income and are registered as married throughout the tax year. Each can deduct the Baht 17,000 per child, child and education allowance. But if the marriage is not registered for the whole year, the husband and wife shall deduct only one half of the allowance which is Baht 8,500 per child.

Allowance for life insurance annuity (Section 47 (1) (d))

Case 1: Husband or wife has assessable income and the spouse does not have any income. The marriage is registered throughout the year. If the life insurance annuity of the husband is Baht 10,000 and the annuity of the wife is Baht 10,000, the husband or wife can deduct his/ her annuity and the spouse’s annuity totaling Baht 20,000. In the case where the marriage is not registered throughout the year, the husband or wife can deduct only his/ her allowance.

Case 2: Husband and wife have their own income and the marriage is registered throughout the year. The husband and wife both pay a Baht 10,000 annuity. Both can deduct his or her own life insurance annuity as an allowance.

Allowance for mortgage interest (Section 47 (1) (h))

Case 1: The husband or wife has an assessable income and the spouse does not have any income. If the husband or wife who has income pays Baht 10,000 interest for his/ her mortgage and the non-income earning spouse also pays another Baht 10,000, the husband or wife having income can claim an allowance only on their interest paid (Baht 10,000).

Case 2: Husband and wife are both income earners. Both have a mortgage and pay Baht 10,000 annual interest on mortgages that were entered into before registering their marriage. The husband and wife can both deduct a Baht 10,000 allowance on their own interest paid.

Case 3: Husband and wife have their own income. In the case that they have a joint mortgage and pay a total of Baht 20,000 of interest, each can deduct an allowance of Baht 10,000.

Maintenance for parents (Section 47 (1) (j))

Case 1: Husband or wife has assessable income and the spouse does not have any income. Husband or wife supports his parents and the spouse’s parents. The husband or wife having assessable income can deduct a Baht 30,000 allowance for supporting both sets of parents (up to Baht 120,000).

Case 2: Husband and wife are both income earners and support their own parents. The husband can deduct an allowance for his parents (total Baht 60,000). Similarly the wife can also deduct an allowance for her parents (total Baht 60,000).

Allowance for the care and maintenance of disabled parents and others (Section 47 (1) (k))

Case 1: The husband or wife has assessable income and the spouse does not have any income. The husband or wife, who has assessable income, supports one disabled person and the spouse supports their disabled child. The husband or wife having income can deduct a Baht 60,000 allowance for the care and maintenance of the disabled person and a Baht 60,000 allowance for the care and maintenance of the spouse’s disabled child (total Baht 120,000).

Case 2: Husband and wife are both income earners. The husband supports his disabled father and the wife supports their disabled child. Both can deduct Baht 60,000 allowances.

Source: The Revenue Department

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