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New income tax structure comes into effect

Discussion in 'General News from Thailand' started by Stamp, 7 Feb 2017.

  1. Stamp

    Stamp Thread Starter Administrator Staff Member

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    [​IMG]

    A revamped personal income tax structure aimed at increasing disposable incomes for taxpayers has officially come into effect since Jan 1 this year, according to the Revenue Department.

    The amendment to the Tax Code, published in the Royal Gazette on Jan 27, applies to incomes received from Jan 1, 2017 to be filed in 2018, director-general Somchai Saengratmaneedet said on Monday.

    General expenses can now be deducted at 50% of taxable incomes but not more than 100,000 baht, compared to 40% and 60,000 baht under the previous structure.

    Deductions are double what was allowed earlier.

    A taxpayer and his/her earning spouse can each deduct up to 60,000 baht, compared to 30,000 baht earlier.

    Deductions for children are now 30,000 baht each and the eligible number is not limited, compared to 15,000 baht each and a cap at three earlier. The number of adopted children, however, is limited at three.

    Filing is now required for those being paid more than 120,000 baht a year or 60,000 baht for incomes other than salaries and wages, or the mix of both.

    [​IMG]

    New income tax structure comes into effect | Bangkok Post: business
     
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  2. bahn_farang

    bahn_farang Well-Known Member

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    The like is for the information rather than for Tax:smile
     
  3. Wangsuda

    Wangsuda Nonentity Staff Member

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    Nice to see my taxes drop a bit
     
  4. ttompatz

    ttompatz Just another teacher

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    The first 150k is tax free (so salary minus 150k).
    Then you have another 100k deduction (now salary minus 250k is tax free).
    Then deduct the wife and kid - 90k (now salary minus 340k is tax free).

    So if you make 340k (with a wife and kid) or less you pay nothing. 250k for a single tax payer, and 310 for a husband and wife.

    IF you make more than 340k then from 340k to 640k you pay 5% (salary minus 340k then multiply by .05 for your tax due.) Max is 15k.
    IF you make more than 640k and less than 840k then salary minus 640k then multiply by 0.10 and then add the previous 15k tax due. (max tax due now is 35k).

    Earnings up to 1,090,000 per year have a tax liability of only 72.5k per year.
    (eg: earnings of 90,800/month pay 6k per month in income tax - about 6.6% in real tax).

    A teacher with a wife and child, earning 40k per month will have annual taxes for 2017 of
    7,000 baht.

    A teacher with a wife and no kids earning 40k per month will have annual taxes for 2017 of about 8,500 baht (due in 2018).

    A teacher with no dependents earning 40k per month will have an annual tax liability of 11,500 baht for the 2017 tax year.

    IF you are making enough to pay more than 35k in annual tax (more than 70k per month income) then you won't miss it anyway and it is substantially less than any of our home countries for tax liability.
    .
     
    Last edited: 7 Feb 2017
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  5. Hey_ewe

    Hey_ewe Well-Known Member

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    Don't forget to bring health insurance etc. for further deductions. Also, if you own your own house, you can get your mortgage payments deducted too. You must produce your house book marriage certificate, ID card and a 'dok bin bahn mai' which is basically an annual statement of your mortgage payments. It makes a significant difference.

    I normally deal with all government officialdom on my own but my wife and I always go together to file my tax returns.
     
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  6. mike123_ca

    mike123_ca Active Member

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    Is there a tax deduction for people for taking educational courses for professional development?
    I was wondering if I could write off my IFUGAO courses.
     
  7. Stamp

    Stamp Thread Starter Administrator Staff Member

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    AFAIK, nope.

    Below's the 2016 allowances table.

    Capture_8.jpg
     
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