Personal Income Tax 2017: What’s new?

by Vincent / 31 August 2017 / Published in B-Accounting, Blog
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The Thai Cabinet has approved the Ministry of Finance’s proposal on a diminution in the personal income tax applicable from 2017

This reduction is applied to the last tax bracket. In 2016, the rate of 35% is imposed on annual earning above THB 4M. From 2017, the same rate will be applied from THB 5M. In addition to this rule, deductions & allowances applicable in the frame of the calculation of the taxable incomes will be increased as follows:

  • ✓ Expenses: 40% not over THB 60,000.00
  • ✓ Personal Allowance: THB 30,000.00
  • ✓ Spouse Allowance not working: THB 60,000
  • ✓ Child allowance: THB 30,000.00 per child, under 20 years old working or not or under 25 years old and studying at university whatever the country. There is not limitation with the number of children. Even if the 2 parents have an income both can claim 30,000 THB per child.
  • ✓ Support of a disabled person with an income not more than 30,000 THB: 60,000 THB
  • ✓ Parents of more than 60 years old, working with an income less than 30,000 THB: THB 30,000.00
  • ✓ Retirement mutual fund: payments up to THB 500,000 but not over than 15% of wages.
  • ✓ Health Insurance for the parents of the tax payers: up to 15,000 THB in total
  • ✓ Thai Life-Insurance with a minimum length of 10 years: up to THB 100,000.00
  • ✓ Pension life insurance premium in Thailand: not more than 15% of assessable incomes or not more than 200,000 THB
  • National Saving fund, government pension fund, private teacher fund: not more than 500,000 THB.
  • ✓ Long-term equity fund: payments up to THB 500,000 but not over than 15% of wages.
  • ✓ Provident fund: up 500,000 THB.
  • ✓ Mortgage Interests: Up to THB 100,000.00
  • ✓ Social Security contributions
  • ✓ Donation to recognized charities: up to 10% of assessable incomes after deductions and allowances.
  • These data are subject to change and are not exhaustive, please directly contact us for more precisions.

    RATES APPLICABLE

    2016 2017
    Range of Income (THB) Rates Range of Income (THB) Rates
    1 – 150,000 Exempt 1 – 150,000 Exempt
    150,001 to 300,000 5% 150,001 to 300,000 5%
    301,000 to 500,000 10% 301,000 to 500,000 10%
    501,000 to 750,000 15% 501,000 to 750,000 15%
    750,001 to 1,000,000 20% 750,001 to 1,000,000 20%
    1,000,001–2,000,000 25% 1,000,001–2,000,000 25%
    2,000,001–5,000,000 30% 2,000,001–4,000,000 30%
    4,000,001 and over 35% 5,000,001 and over 35%

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