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Personal income tax in 2017
Taxation is always an actual subject to discuss. Recently in Thailand there are mostly positive changes especially in personal income taxation field.
The latest changes of the rates were made in 2013 and still work as per today. One of the goals is to exclude the pay envelopes is almost achieved by progressive tax rate, allowances and deductions. However the new changes are on their way, starting with 2017 the new rates and deductions will be settled.
Tax rates:
| Income, Baht | Tax rate, 2016 |
| 0 – 150,000 | 0% |
| 150,001 – 300,000 | 5% |
| 300,001 - 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,001 - 1,000,000 | 20% |
| 1,000,001 – 2,000,000 | 25% |
| 2,000,001 - 4,000,000 | 30% |
| 4,000,001 and more | 35% |
The changes concern only one point namely maximum rate of 35% shall be applied to the income of more than 5 million Bath:
| Income, Baht | Tax rate, 2017 |
| 0 – 150,000 | 0% |
| 150,001 – 300,000 | 5% |
| 300,001 - 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,001 - 1,000,000 | 20% |
| 1,000,001 – 2,000,000 | 25% |
| 2,000,001 - 5,000,000 | 30% |
| 5,000,001 and more | 35% |
Deductions and Allowances:
| 2016 | 2017 | |
| Deduction | 40% but not exceeding 60,000 baht | 50% but not exceeding 100,000 baht |
| Allowance | 30,000 Baht | 60,000 Baht |
How will these changes influence the standard minimum foreigner's salary of 35,000 Baht in scopes of taxes calculation?
| 2016 | 2017 | |
| Yearly income | 35,000 Х 12 = 420,000 Baht | 35,000 Х 12 = 420,000 Baht |
| Deduction | -60,000 | -100,000 |
| Allowance | -30,000 | -60,000 |
| Taxable income | 330,000 | 260,000 |
Calculation of tax under the table of rates:
2016
| Total income: 330 000 бат | Taxable income | Rate | Tax, Baht |
| 0 – 150,000 | 150,000 | 0% | 0 |
| 150,001 – 300,000 | 150,000 | 5% | 7,500 |
| 300,001 - 330,000 | 30,000 | 10% | 3,000 |
| Total | 10,500 |
Total sum of salary tax per year: 10,500 Baht.
Monthly salary tax: 10,500 Baht : 12 months – 875 Baht.
2017
Total income: 330 000 бат | Taxable income | Tax rate | Tax, Baht |
| 0 – 150,000 | 150,000 | 0% | 0 |
| 150,001 – 260,000 | 110,000 | 5% | 5,500 |
| Total | 5,500 |
Total sum of salary tax per year: 5,500 Baht.
Monthly salary tax: 5,500 Baht : 12 months – 458 Baht.
Hereof should the personal income is less than 310,000 Baht per year (about 26,000 Baht per month), the income tax shall be 0%.
By Aleksandra Agapitova
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