Personal Income Tax
The Personal Income Tax (PIT) is a direct tax levied on the income of taxable persons, i.e individuals residing in Thailand more than 180 days in a calendar year, or non-resident earning income in Thailand.
The PIT applies to different categories of income such as salaries & wages, receipts from copyright, interests, dividends, capital gains, income from property, from services or from liberal professions.
Deductions & allowances
The assessable income of a taxpayer, i.e the income derived from above mentioned categories and subject to PIT, can be reduced by certain deductions and allowances lowering the tax liability, as below listed:
| Income type | Deductible expenses |
|---|---|
| Income from employment | 50% of assessable income, up to 100,000 THB |
| Income received from goodwill, copyright, other rights, annuity, court judgments, etc… | 50% of assessable income, up to 100,000 THB |
| Income from rental of property | 30% of assessable income for houses, buildings & vehicles, 10% to 20% for other property |
| Income derived from liberal professions | 30% of assessable income except for medical professions where 60% is allowed |
| Construction income | Actual expense or 60% of assessable income |
| Income from activities of business, commerce, agriculture, transportation, other not specified | 60% of assessable income |
Notes:
The deduction of expenses in relation to income from rental, liberal professions, contract work, activities of business, commerce and other non specified income may be made on an actual basis only if satisfactory evidences of such expenses can be provided to the Revenue Department.
Personal Income Tax – Allowance
| Type of allowance (*) | Rate |
|---|---|
| Personal | 60,000 THB |
| Spouse (with no income) | 60,000 THB |
| Child (under 20 years of age, regardless of whether he or she is studying, or under 25 years of age but he or she must be studying at a university in Thailand, uncapped number of children) | 30,000 THB |
| Parent (each) | 30,000 THB |
| Life insurance premium paid by tax payer | Amount actually paid up to 100,000 THB |
| Provident fund contributions and retired mutual fund | 15% of assessable income up to Up to 500,000 THB |
| Long term equity fund | 15% of assessable income up to Up to 500,000 THB |
| Home mortgage interest | Amount actually paid up to 100,000 THB |
| Charitable contributions | Amount actually donated up to 10% of assessable income after standard deductions and allowances.There is a double deduction allowed for donations to educational organizations, but not exceeding 10% of assessable income. |
Notes:
The above list is not definitive and allowances on specific classes of income may differ.
How to calculate your PIT
The PIT calculation is therefore the result of the following formula: Assessable Income – Deductible expenses – Allowances, to which the below progressive tax rates apply:
| Taxable income (Baht) | Tax rate % |
|---|---|
| 1 – 150,000 | Exempt |
| 150,001 – 300,000 | 5% |
| 300,001 – 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,000 – 1,000,000 | 20% |
| 1,000,001 – 2,000,000 | 25% |
| 2,000,001 – 5,000,000 | 30% |
| 5,000,001 and Over | 35% |
