Personal Income Tax (& NI) Thailand - Useful Notes and Links
Oct 6, 2015 12:04:30 GMT 7
wildoats and 88 like this
Post by Fletchsmile on Oct 6, 2015 12:04:30 GMT 7
People ask from time to time about Personal Income Tax (PIT) in Thailand, so this thread is for useful notes and links.
กรมสรรพากร - pronounced "grohm san phaa gaawn" is the noun meaning Revenue Department or Government Tax Office
Useful notes and links
1) Basic overview of Personal Income Tax, what's covered, allowances rates etc
www.rd.go.th/publish/6045.0.html
2) Thai Revenue Site Map - useful for a quick idea of what's on the website. But like all websites they change and pages get added / removed
www.rd.go.th/publish/6010.0.html
3) Thai Revenue Code Index for looking up particular parts of the code (note some of the links from here e.g. on rates are to not always most up to date rates/ tables, but the code itself and principles don't change much)
www.rd.go.th/publish/37748.0.html
4) Chapter 3 of the Revenue Code is the main part on Personal Income Tax that foreigners would likely use for themselves as individuals and sets out the rules in more details
www.rd.go.th/publish/37749.0.html#section40
5) Severance Pay - Section 48 (5) of Chapter 3 gives the tax treatment on severance pay for termination of employment. There is a tax exempt amount of 300k for this extra severance pay. After that there are 2 choices on the XS:
a) Have taxed together with your normal salary at your marginal (top rate)
b) Have taxed separately under separate rules - usually this will better for most people and will result in lower tax paid
www.rd.go.th/publish/37749.0.html#section40
6) Severance Pay form
the code can be a bit difficult to follow - aren't tax rules always like that?
The attached form is the one used for separate basis - 5) b) above and for those of us who prefer seeing examples and numbers is a bit easier to follow even though it looks complex
While your HR department/finance should really sort this for you, sometimes they make mistakes, don't care or don't know, so worth arming yourself with the knowledge to check if it happens to you. It can make a big difference.
Attachment Deleted
7) Thai provident Fund Tax - useful if you leave and need to know what tax to pay. 3 scenarios will happen
a) Been there less than 5 years
b) Been there more than 5 years
c) You've reached the 55 years retirement age
For b) There are again 2 choices. A bit like severance pay in 5) you can choose to add to add to normal income or be taxed separately. This needs a bit more thought than 5) though as pensions throw in a couple more factors
www.thaipvd.com/content_en.php?content_id=00308
8) The big accounting firms often provide their own booklets/ notes. So you could just goole accounting firm + thai tax or similar to look up most recent versions
PWC
www.pwc.com/th/en/publications/2014/2014-thai-tax-booklet-web.pdf
Mazars
www.mazars.co.th/Home/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax
9) Links for finding your local tax office. My experience in Thailand is that they are friendly and helpful to foreign individuals - unusual in most countries
www.rd.go.th/publish/38156.0.html
10) Big Mango also gets thread from time to time asking about certain aspects, eg
how to reduce your personal income tax
bigmango.boards.net/thread/280/reducing-personal-income-tax
Bear in mind life changes and so do the rules and this is intended for general info only and not specific advice. Feel free to start a separate thread if you've any questions or need a bit of help.
If you come across useful info though, feel free to share and add to this thread
Cheers
Fletch
กรมสรรพากร - pronounced "grohm san phaa gaawn" is the noun meaning Revenue Department or Government Tax Office
Useful notes and links
1) Basic overview of Personal Income Tax, what's covered, allowances rates etc
www.rd.go.th/publish/6045.0.html
2) Thai Revenue Site Map - useful for a quick idea of what's on the website. But like all websites they change and pages get added / removed
www.rd.go.th/publish/6010.0.html
3) Thai Revenue Code Index for looking up particular parts of the code (note some of the links from here e.g. on rates are to not always most up to date rates/ tables, but the code itself and principles don't change much)
www.rd.go.th/publish/37748.0.html
4) Chapter 3 of the Revenue Code is the main part on Personal Income Tax that foreigners would likely use for themselves as individuals and sets out the rules in more details
www.rd.go.th/publish/37749.0.html#section40
5) Severance Pay - Section 48 (5) of Chapter 3 gives the tax treatment on severance pay for termination of employment. There is a tax exempt amount of 300k for this extra severance pay. After that there are 2 choices on the XS:
a) Have taxed together with your normal salary at your marginal (top rate)
b) Have taxed separately under separate rules - usually this will better for most people and will result in lower tax paid
www.rd.go.th/publish/37749.0.html#section40
6) Severance Pay form
the code can be a bit difficult to follow - aren't tax rules always like that?
The attached form is the one used for separate basis - 5) b) above and for those of us who prefer seeing examples and numbers is a bit easier to follow even though it looks complex
While your HR department/finance should really sort this for you, sometimes they make mistakes, don't care or don't know, so worth arming yourself with the knowledge to check if it happens to you. It can make a big difference.
Attachment Deleted
7) Thai provident Fund Tax - useful if you leave and need to know what tax to pay. 3 scenarios will happen
a) Been there less than 5 years
b) Been there more than 5 years
c) You've reached the 55 years retirement age
For b) There are again 2 choices. A bit like severance pay in 5) you can choose to add to add to normal income or be taxed separately. This needs a bit more thought than 5) though as pensions throw in a couple more factors
www.thaipvd.com/content_en.php?content_id=00308
8) The big accounting firms often provide their own booklets/ notes. So you could just goole accounting firm + thai tax or similar to look up most recent versions
PWC
www.pwc.com/th/en/publications/2014/2014-thai-tax-booklet-web.pdf
Mazars
www.mazars.co.th/Home/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax
9) Links for finding your local tax office. My experience in Thailand is that they are friendly and helpful to foreign individuals - unusual in most countries
www.rd.go.th/publish/38156.0.html
10) Big Mango also gets thread from time to time asking about certain aspects, eg
how to reduce your personal income tax
bigmango.boards.net/thread/280/reducing-personal-income-tax
Bear in mind life changes and so do the rules and this is intended for general info only and not specific advice. Feel free to start a separate thread if you've any questions or need a bit of help.
If you come across useful info though, feel free to share and add to this thread
Cheers
Fletch