Subject: X.2) Personal income tax
From: mbarnes@bismark.east.Sun.COM (Mike Barnes)
Date: 20 May 1994 22:19:49 GMT
Personal Income Tax
Every person, resident or non-resident, who derives assessable
income from employment or business in Thailand or has assets
located in Thailand, is subject to personal income tax, whether
such income is paid in or outside of Thailand. Exemptions are
granted to certain persons, including U.N officers, diplomats and
certain visiting experts, under the terms of international and
bilateral agreements.
Personal income tax is applied on a graduated scale as follows:
Net Annual Income (Baht) Tax Rate
60,000 - 100,000 5%
101,000 - 500,000 10%
501,000 - 1,000,000 20%
1,000,000 - 4,000,000 30%
4,000,001 or above 37%
Individuals residing for 180 days or more in Thailand for any cal-
endar year are also subject to income tax on income from foreign
sources if that income is brought into Thailand during the same
taxable year that they are a resident.
Exchange control laws stipulate that all foreign exchange earned
by a resident, whether or not derived from employment or business
in Thailand, be brought into Thailand within seven days of acqui-
sition, unless permission for an extension is granted.
Personal income taxes and tax returns are due prior to the end of
March of the year following the year in which the income was
earned.
A standard deduction of 40 percent, but not in excess of Baht
60,000, is permitted against income from employment or services
rendered or copyrights. Standard deductions ranging from 10 to 85
percent are allowed fro other categories of income. In general,
however, taxpayers may elect to itemize expenses in lieu of taking
standard deductions or income from sources specified by law.
The following annual personal exemptions are permitted:
Taxpayer Baht 30,000
Taxpayer's Spouse Baht 30,000
Each Child Baht 15,000
Each Child's Education Baht 2,000
For Taxpayer and Spouse for
contributions to a Provident Fund Baht 10,000
For Taxpayer and Spouse for interest payment
on loans for purchasing, hire-purchasing or
construction of residential buildings Baht 10,000
Only three children per taxpayer family qualify for the child
allowance, but this limitation applies only to children born on or
after 1 January 1979. Therefore, in counting the number of chil-
dren, a child born prior to 1979 can also be counted. For example,
a taxpayer with four children born before 1979 continue to qualify
for an aggregate allowance of Baht 60,000. A fifth child, born in
1979, would not qualify.
Additional taxes can be assessed within a period of ten years from
the date of filing a return, but authority to issue a summons for
examination is limited to 5 years after the filing date. If an
individual fails to file a return, an assessment may be issued
within a period of then years from the filing due date.
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