Personal Income Tax of Thailand

7/21/2019 Personal Income Tax of Thailand

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Income Taxation

on Individuals inThailand

Reported by

Princess Joy G. Florentin

on

November 29 2!"#


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Introduction

Revenue $epartment

founded on September 2, 1915 byKing Rama VI, following on from

King Rama V's visions to establis!ountrywide infrastru!ture, and toprovide a revenue !olle!tionplatform in order for "ailand to

remain aligned internationally#


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Introduction

"a%ation is te main sour!e ofgovernment's revenue#

& large part of ta% !olle!tion !omesfrom tree main agen!ies under te

inistry of (inan!e)1# Revenue *epartment,

2# +%!ise *epartment,

# -ustoms *epartment

wi! !olle!tively a!!ount forabout .5/90 of te government'srevenue# "e Revenue *epartmentitself !olle!ts more tan alf of te

total ta% !olle!tion#


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%r&ani'ational (tructure o) the Revenue$epartment


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Personal Income Tax*PIT+

a dire!t ta% levied on in!ome of aperson#

Taxable Persons atural persons3 4ody of persons3 nregistered ordinary partnersips3 *e!eased3 ndistributed estate of te de!eased#


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I. Taxable

Persons


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". Resident any person residing in "ailand

for a period or periodsaggregating ",! days or morein any ta% 6!alendar7 year#

liable to pay ta% onincome )romsources in Thailand as well ason te portion o) income )rom)orei&n sources that is

brou&ht into Thailand.


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2# on/resident sub8e!t to ta% only on income

)rom sources in Thailand#


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II. Tax -ase


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ssessable Income

"e in!ome !argeable tote I" is !alled :assessablein!ome;#

!overs in!ome bot in cash

and in /ind.


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1# In!ome from employment wit

an employer32# In!ome by virtue of positions or

servi!es rendered3

# In!ome from goodwill,

!opyrigt, fran!ise, oterrigts, annuity, et!#3

, 0ate&ories o)

ssessable Income


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5# In!ome from leasing of

property and from brea!es of!ontra!ts, installment sales orire/pur!ase !ontra!ts3

@# In!ome from liberal

professions3

A# In!ome from !onstru!tion andoter !ontra!ts of wor=3

.# In!ome from business,!ommer!e, agri!ulture,industry, transport or any otera!tivity not spe!i>ed earlier#


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"a%payer sall ma=ededu!tions from assessablein!ome before te allowan!es

are granted# "erefore,

llo1ances

ssessable Income

$eductions

T-34 IN0%54

=

$eductions and

llo1ances


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llo1ed $eductions


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llo1ed llo1ances

*4xemptions+


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&ny ta%payer wo domi!iles in"ailand and re!eives dividendsfrom a 8uristi! !ompany or

partnersip in!orporated in"ailand is entitled to a ta% !reditof BA of te amount of dividendsre!eived# In !omputing

assessable in!ome, ta%payersall gross up is dividends byte amount of te ta% !reditre!eived# "e amount of ta%

!redit is !reditable against is ta%

Tax 0redit )or $ividends


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III.Pro&ressive

Tax Rates


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PIT Rates


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In te !ase were in!ome

!ategories 627 / 6.7 mentioned in:&ssessable In!ome; are earnedmore tan @0,000 4at per annum,ta%payer as to !al!ulate te

amount of ta% by multiplying 0#5to te assessable in!ome and!ompare wit te amount of ta%!al!ulated by progressive ta% rates#

"a%payer is liable to pay ta% at teamount wi!ever is greater#


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(eparate Taxation

"ere are several types ofin!ome tat te ta%payer sallnot in!lude or may not !ooseto in!lude su! in!ome to teassessable in!ome in!al!ulating te ta% liability#


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". Income )rom (ale o)

Immovable Property

"ose a!?uired by be?uest orby way of gift#

+C-+", if te sale is madefor a !ommer!ial purpose#


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2. Interest

"e following forms ofinterest in!ome may, at teta%payerDs sele!tion, bee%!luded from te!omputation of I" providedtat a ta% of 15 is witeldat sour!e)

a# interest on bonds ordebentures issued by agovernment organiEation3


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b# interest on saving deposits in!ommer!ial ban=s if teaggregate amount of interestre!eived is not more tan20,000 bat during a ta%able

year3!# interest on loans paid by a>nan!e !ompany3

d# interest re!eived from any

>nan!ial institution organiEedby a spe!i>! law of "ailandfor te purpose of lendingmoney to promote agri!ulture,

!ommer!e or industry#


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6.$ividends

"ose re!eived by a residentta%payer from a registered!ompany or a mutual fund

wi! ta% as been witeldat sour!e at te rate of 10

Fowever, in doing so,

ta%payer will be unable to!laim any refund or !redit

6"a% !redit for dividends7#
http://var/www/apps/conversion/tmp/scratch_2/Link%201_Tax%20Credit%20for%20Dividends.pptxhttp://var/www/apps/conversion/tmp/scratch_2/Link%201_Tax%20Credit%20for%20Dividends.pptx


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I7.8ithholdin&

Tax


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"e following are te witolding ta%

rates on some !ategories of in!ome)


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7. Taxdministrati

on


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"a% Gear

-alendar Gear

(iling *ate

o later tan ar! 1 of te

following year

Filin&


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"a%payers wo derive in!ome inrelation to

1# te lease of property3

2# liberal professions

# !ontra!tual wor=3 and

le a mid/year ta%return by September 0 in respe!t

of in!ome derived during te >rst@ monts of te ta%able year# "a%paid at te time of te mid/year>ling is !reditable against te

annual ta% liability#


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1# & ta%payer may be assessed foradditional ta% by an assessmentoJ!er#

"ese may be redu!ed by 50upon submission of a writtenre?uest by te ta%payer and teassessment oJ!er is of te opinion

tat te former did not intend to

Penalties and(urchar&e


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2# (ailure to pay or remit ta% witinspe!i>ed time

1#5 per mont, or a fra!tiontereof, of te amount of ta% to be

paid or remitted sub8e!t to ama%imum amount e?ual to teamount of ta% to be paid orremitted#

In te !ase were a *ire!tor/enerale%tends te time limit for ta%payment or ta% remittan!e, and teta% is paid or remitted witin tee%tended time, te sur!arge sallbe redu!ed to 0#A5 per mont or a

Penalties and(urchar&e


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Documents

Personal Income Tax of Thailand