The majority of us will have to file a Personal Income Tax return for 2009 by 31 March 2010. We are allowed to deduct up to 40% as long as it does not exceed 60,000 baht from income earned from employment during the calendar year.

The following are certain types of allowance and exemptions that you are allow to deduct from gross income:

Personal allowance
Single taxpayer - 30,000 baht
Undivided estate - 30,000 baht for the taxpayer’s spouse
Non-juristic partnership or body of persons - 30,000 baht for each partner but not exceeding 60,000 baht in total

Spouse allowance - 30,000 baht

Child allowance (child under 25 years of age and studying at educational institution, or a minor, or an adjusted incompetent or quasi-incompetent person) - 15,000 baht each (limited to three children)

Education (additional allowance for child studying in educational institution in Thailand) - 2,000 baht per child

Parents allowance - 30,000 baht for each of taxpayer’s and spouse’s parents if parent is over 60 years old and earns less than 30,000 baht.

Life insurance premium (paid by taxpayer or spouse) - Amount actually paid but not exceeding 100,000 baht each

Approved provident fund contributions and RMF paid by taxpayer or spouse - Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht

Long term equity fund(LTF) - Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht

Home mortgage interest - Amount actually paid but not exceeding 100,000 baht

Social insurance contributions paid by taxpayer or spouse - Amount actually paid

Charitable contributions - Amount actually donated but not exceeding 10% of the income after standard deductions and the above allowances.

Personal Income Tax rates

After the above deductions are made, the progressive tax calculation will made against net income:
0 - 150,000 baht - Exempt
150,001 - 500,000 baht - 10%
500,001 - 1,000,000 baht - 20%
1,000,001 - 4,000,000 baht - 30%
4,000,001 baht and over - 37%

Most of us whose earnings are derived from receiving a regular salary will pay tax once a year by using a PND.91 form and by making a payment to the Revenue Department. Any withheld tax which has been paid to the Revenue Department can be used as a credit against the tax liability at the end of the year.

If you have any questions concerning the Revenue Department, please feel free to e-mail: sirirat@thaiaccounting. com. We will select an appropriate question and publish it in Thai Tax Tips.

K Sirirat is the Managing Director of NAT accounting firm, the ISO 9001 certified accounting firm. Please call: 076-375-699 or visit: www.thaiaccounting.com