Good news! There is an update in Thailand Personal Income Tax structure, effective from January 1, 2017. The modification aims to ease the tax burdens while boosting disposable income. The new rates are applicable on all incomes and earnings as on January 1 for the filing in 2018.
The Thai Royal Cabinet gave approval to this revision of income tax scheme in 2016 for its implementation in 2017. It generally focuses on personal income tax reduction for the foreign employees. Therefore, it has revised the income tax bands that are subjected to 30%-35% and has increased the deductibles. However, there is no change in the lower income bands.
The personal income tax (PIT) update modifies the bands that in the range of 30% tax from THB 2,000,001-4,000,000 to THB 2,000,001-5,000,000. On the other hand, the 35% tax rate bands have changed from THB 4,000,000 to over THB 5,000,000.
There is a rise in the deductible amount for expenses from 40% to 50% of the taxable income with THB 100,000 limit. Even tax allowances have been doubled across the board. There is rise in Spousal allowances from THB 30,000 to THB 60,000. Whereas, there is rise in child allowances from THB 15,000 per child to THB 30,000 per child without any limit.
Additionally, the new PIT scheme increases the threshold for tax filing, straight from THB 50,000 to THB 100,000. It is applicable for a sole taxpayer. Individuals who have other sources of income for them the threshold will fall in the range from THB 30,000 to THB 60,000. However, low-earners below the threshold need to file.
To conclude, the new PIT structure offers higher expense and allowance rates to the taxpayers. It reduces the monthly tax payment while giving more benefits. For more information, you can contact us at [email protected]. Call us or send us an inquiry our taxation expert will get back to you in a while or so.
