Personal Income Tax (PIT)

  • Income tax collected from personal income tax base
  • Income tax based or “net income” is calculated from total income for the year (1 January – 31 December) deducted by tax expenses and tax allowance.

Total Income – Tax Expenses – Tax Allowance = Net Income

Income tax base

  • Cash received from payer
  • Asset received from payer
  • Fringe Benefit received from payer
  • Income tax absorb by payer

Type of income

  1. Salary
  2. Wage
  3. Goodwill, Annual fee, Copy Right, etc.
  4. Benefit from investment (i.e. dividend, interest)
  5. Asset Rental Income or income from breach the financial lease contract / hire-purchase
  6. Professional Service Income (Healthcare Profession, Legal Profession, Accounting Profession, Engineering Profession, Architecture Profession and Artist)
  7. Contractor Income
  8. Income from commercial business, agriculture, industrial, logistic, and other not specific in (1) – (7)

Income tax base

Salary and other benefit including;

  1. Salary
  2. Bonus
  3. Overtime
  4. Accommodation paid/provide by employer
  5. Debt/benefit paid by employer
  6. Meal provide by employer
  7. Assets or any benefit received from employer

Income tax base (Tax expense)

Tax expense for income type (1); total tax expenses allows 50% of total income, maximum at THB 100,000

Example
Monthly salary for Mr. A = 50,000 total annual income = THB. 600,000
Tax expense for Mr. A = 600,000 x 50% = 300,000; however, maximum tax expense allows at THB. 100,000, thus Mr. A tax expense = THB. 100,000

Income tax base (Tax allowance)

General tax allowance

  • Personal tax allowance THB 60,000
  • Spouse (no income) THB 60,000
  • Children THB 30,000 per person
  • Parents (aged over 60 and no income) THB 30,000 per person
  • Disable person caretaker THB 60,000 per person
  • Life insurance policy in Thailand (actual paid, maximum THB 100,000) (policy cover over 10 years)
  • Personal Health insurance maximum THB.25,000
  • Health insurance policy for parent (actual paid, maximum THB. 15,000)
  • Housing loan interest (actual paid, maximum THB. 100,000)
  • Social security payment (actual paid, maximum THB 9,000)
  • Provident Fund (actual paid)
  • Insurance policy for retirement (maximum THB 200,000)
  • Investment in SSF (maximum 30% of total income but not exceed THB 200,000)
  • Investment in RMF (maximum 30% of total income, including Provident Fund, Insurance policy for retirement, SSF and RMF not exceed THB 500,000)
  • Investment in Thai ESG (maximum THB 100,000)
  • Donation (actual paid, maximum at 10% of net income)

Thailand Personal Income Tax rate

Net Income Income Range Tax Rate Tax Expense
0-150,000 (exempt) 150,000 0% 0
150,001-300,000 150,000 5% 7,500
300,001-500,000 200,000 10% 20,000
500,001-750,000 250,000 15% 37,500
750,001-1,000,000 250,000 20% 50,000
1,000,001-2,000,000 1,000,000 25% 250,000
2,000,001-5,000,000 3,000,000 30% 900,000
5,000,001 (up) 35%

Example: Tax calculation method

Salary (60,000 / THB) 720,000 THB/ Year (1)
Deduct; Expenses 100,000 THB / Year (2)
            Personal Allowance 60,000 THB / Year (3)
            Social Security Fund 9,000 THB / Year (4)
Base Income (1) – (2)-(3)-(4) 551,000 THB
Tax Calculation:
0 – 150,000 x 0% 150,000 0
150,000 – 300,000 x 5% 150,000 7,500
300,000 – 500,000 x 10% 200,000 20,000
500,000 – 750,000 x 15% 51,000 7,650
Total 551,000 35,150
Per Month (35,150 / 12)           2,929.17 THB

Example: Tax calculation method (Bonus month)

Salary (60,000 / THB) 720,000 THB/ Year (1)
Bonus 120,000 THB (2)
Deduct; Expenses 100,000 THB / Year (3)
            Personal Allowance 60,000 THB / Year (4)
            Social Security Fund 9,000 THB / Year (5)
Base Income (1)+(2)-(3)-(4)-(5) 671,000 THB
Tax Calculation:
0 – 150,000 x 0% 150,000 0
150,000 – 300,000 x 5% 150,000 7,500
300,000 – 500,000 x 10% 200,000 20,000
500,000 – 750,000 x 15% 171,000 25,650
Total 671,000 53,150
Tax to be paid on month (53,150 – 35,150) =  18,000+ 2,929.17 = 20,929.17 THB

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