The new personal income tax (PIT) in Thailand aims at easing the tax burdens while boosting the disposable income.
So, how the new structure is formed?
The income tax bands are subjected to 30% and 35% tax, and therefore increases deductibles, and double the allowance. As for the low-income tax bands that remain unchanged. However, the revision has raised the minimum limit for mandatory tax filing.
“The PIT changes the bands subject to 30% tax rate from THB 2,000,001-4,000,000 to THB 2,000,001-5,000,000, and the 35% tax rate from over THB 4,000,000 to over THB 5,000,000.”
And the deductible amount for the expenses has been increased from 40% of the taxable income with THB 60,000 to 50% of the taxable income with a minimum threshold of THB 100,000. Besides, personal allowances have been doubled from THB 30,000 to THB 60,000. Alongside child allowances, spousal allowances have been increased from THB 30,000 to THB 60,000.
Tax Reporting
The limit for personal income tax filing has been raised from THB 50,000 to THB 100,000 for an individual tax payer. Even if there’s no tax to be paid, individuals who are meeting the threshold have to file it with the tax authorities, whereas the low-earners below the threshold need not do so.
If you need any further assistance regarding personal income tax in Thailand, we are always there to assist.
