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
- Salary
- Wage
- Goodwill, Annual fee, Copy Right, etc.
- Benefit from investment (i.e. dividend, interest)
- Asset Rental Income or income from breach the financial lease contract / hire-purchase
- Professional Service Income (Healthcare Profession, Legal Profession, Accounting Profession, Engineering Profession, Architecture Profession and Artist)
- Contractor Income
- Income from commercial business, agriculture, industrial, logistic, and other not specific in (1) – (7)
Income tax base
Salary and other benefit including;
- Salary
- Bonus
- Overtime
- Accommodation paid/provide by employer
- Debt/benefit paid by employer
- Meal provide by employer
- 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 | |||
