The assessable income is classified into eight categories:
As specified in the fourth point, capital gains are taxable as ordinary income. As is the case in many countries, capital losses cannot be offset against the capital gains.
There are three exceptions to the taxability of the capital gains:
Income from wages and salary, including the benefits provided by an employer (e.g. income from stock options, personal income tax paid and absorbed by the employer, living allowances, monetary value of rent-free accommodation…), but excluding business travel expenses and medical treatment
Several deductible expenses and allowances are available to lessen the personal income tax burden.
The following may be deducted from the assessable income:
Thai tax law also foresees different allowances:
The personal income tax system is progressive:
|Taxable income||Tax rate|
|0 – 150,000 THB (189,999 THB in case of the taxpayer is older than 65 years)||Exempted|
|150,001 – 300,000 THB||5%|
|300,001 – 500,000 THB||10%|
|500,001 – 750,000 THB||15%|
|750,001 – 1,000,000 THB||20%|
|1,000,001 – 2,000,000 THB||25%|
|2,000,001 – 4,000,000 THB||30%|
For certain types of income, taxes have to be withheld at the source and submitted to the District Revenue Office. For the receiver of the income, the tax withheld will be credited against the tax liability at the end of the year.
There are different rates of withholding tax depending on the sort of income, for example:
|Type of income||Withholding tax|
|Income from employment||0-35%|
|Income from rent||Resident: 5%||Non-resident: 15%*|
|Income from hire of work and professional fees||Residents: 3%||Non-residents: 15%*|
|Public entertainment remuneration||Residents: 5%||Non-residents: 0-35%*|
All companies employing more than ten employees are obliged to make a contribution to the Provident Fund. Compensation can be claimed from this fund in case of, amongst others, retirement or death during the employment. The compensation amounts to the total of the contributions made by the employee and employer, as well as the benefits accrued on it.
Each company and employee also has to make contributions to the Social Security Fund. The contribution amounts to 5% of the total salary but cannot be more than 750 THB. As is the case in many countries, this fund serves for example for those who are injured, sick, disabled, or on maternity leave. Child welfare and unemployment (50% of the salary for maximum 180 days) are paid out of this fund as well.
The tax year for personal income tax is the calendar year ending December 31, and tax filings and payments must be completed by March 31 of the following year (PND 90 or 91). Personal income tax filings may be done on paper or by electronic form. For income derived from hiring out property, liberal professions and all income that falls within the scope of point (8), the taxpayer also has to file a half-yearly tax return on September 30. These taxes may be set off at the end of the tax year as tax credits.
In case of an inaccurate return, a penalty of 100% may be imposed. The penalty for not filing a return amounts to 200%. These penalties may be reduced with 50% by the officer at the Revenue Department if he/she is of the opinion that there was no intention to evade taxes.