Introduction to Personal Income Tax in Thailand

[anchadian]

Whatever amount of UK state pension is transferred to Thailand, will you get 100,000 baht pension allowance and 60,000 personal allowance?
 

[chiang mai]

10 minutes ago, anchadian said:

Whatever amount of UK state pension is transferred to Thailand, will you get 100,000 baht pension allowance and 60,000 personal allowance?
 

No! You are entitled to 50% of the value of the pension transferred to Thailand, up to a maximum of 100k Baht.

 

Plus, you are entitled to a 60 K personal deduction AND because you are over age 65 years, a 190k deduction.

 

[anchadian]

Thank you CM.

The reason I asked this question is 'Expattax' states for those on a low income pension remittance 100,000 pension allowance and 60,000 personal allowance.

 

https://www.expattaxthailand.com/taxation-overseas-pensions-thailand/

[chiang mai]

4 minutes ago, anchadian said:

Thank you CM.

The reason I asked this question is 'Expattax' states for those on a low income pension remittance 100,000 pension allowance and 60,000 personal allowance.

 

https://www.expattaxthailand.com/taxation-overseas-pensions-thailand/

In their "Practical Scenarios and Case Studies" they suggest a 100k Pension Allowance, because the remitted pension is 300k, ergo, within the 50% rule.

 

Pension income is classed as Category I income. Most classes of income have an associated expense deduction which varies from class to class. If you look at the table in the Sherrings link below, you will see that Cat I income attracts a 50% deduction, to a maximum of 100k.

 

https://sherrings.com/personal-tax-deductions-allowances-thailand.html

 

 

 

 

[Liquorice]

10 hours ago, oldcpu said:

I keep checking here for the 2024 english language Thai Tax forms but no sign of such yet:

https://www.rd.go.th/english/65308.html

I was informed yesterday by the TRD that the new Thai tax forms will be available from the above site just before the New year.

[chiang mai]

Just now, Liquorice said:

I was informed yesterday by the TRD that the new Thai tax forms will be available from the above site just before the New year.

Yeah.........!

[essexman]

Would some kind person tell me the different allowances I will be able to claim when I visit the tax office?  I have two small pensions coming directly to my Thai bank account from the UK.  I know about the 190.000 for being over 65, and the 60.000 each for the wife and myself.  I read somewhere that the first 1000.000 of my pension is not taxable, am I correct in thinking that?  Now, one I've been told, but never seen written is that the first 150000 of my assessable income is zero-rated.  Is this true?  I have some health insurance and read somewhere that you can claim up to 25.000.

Thanks in advance for any information.

Also, I had some advice earlier in the year from Mike Lister.  He was very helpful, Looks like he hasn't been active for quite a few months, I hope he is okay.

[chiang mai]

6 minutes ago, essexman said:

Would some kind person tell me the different allowances I will be able to claim when I visit the tax office?  I have two small pensions coming directly to my Thai bank account from the UK.  I know about the 190.000 for being over 65, and the 60.000 each for the wife and myself.  I read somewhere that the first 1000.000 of my pension is not taxable, am I correct in thinking that?  Now, one I've been told, but never seen written is that the first 150000 of my assessable income is zero-rated.  Is this true?  I have some health insurance and read somewhere that you can claim up to 25.000.

Thanks in advance for any information.

Also, I had some advice earlier in the year from Mike Lister.  He was very helpful, Looks like he hasn't been active for quite a few months, I hope he is okay.

The first 150k is indeed zero rated for tax.

 

You are entitled to deduct 50% of the value of your pension, up to a maximum of 100k. If for example you receive 300k per year, you can claim 50% of that or a maximum of 100k as a deduction. But if you only receive say 150k, 50% of that would be equal to 75k as a deduction and you wouldn't have enough to claim the maximum.

 

Health insurance premiums are tax deductible, as long as the premium is paid to a Thai company, in Thailand, maximum 25k.

[essexman]

58 minutes ago, chiang mai said:

The first 150k is indeed zero rated for tax.

 

You are entitled to deduct 50% of the value of your pension, up to a maximum of 100k. If for example you receive 300k per year, you can claim 50% of that or a maximum of 100k as a deduction. But if you only receive say 150k, 50% of that would be equal to 75k as a deduction and you wouldn't have enough to claim the maximum.

 

Health insurance premiums are tax deductible, as long as the premium is paid to a Thai company, in Thailand, maximum 25k.

chiang mai, thank you for you're swift reply, appreciated.

 

[The Cyclist]

1 hour ago, essexman said:

I have two small pensions coming directly to my Thai bank account from the UK.

 

If one of those Pensions is a Government Pension, not taxable in Thailand and no need to declare it.

[essexman]

13 hours ago, The Cyclist said:

 

If one of those Pensions is a Government Pension, not taxable in Thailand and no need to declare it.

Yes, one is a Government pension,  

[chiang mai]

9 minutes ago, essexman said:

Yes, one is a Government pension,  

The State Pension is NOT considered to be a government pension. A government pension is one paid to civil servants, armed forces members, etc etc. Can we be clear about the source of your two small pensions please?

[essexman]

1 hour ago, chiang mai said:

The State Pension is NOT considered to be a government pension. A government pension is one paid to civil servants, armed forces members, etc etc. Can we be clear about the source of your two small pensions please?

Yes, one is a company pension and one is the state pension.

[chiang mai]

5 minutes ago, essexman said:

Yes, one is a company pension and one is the state pension.

Thanks, a lot of people think the State Pension is a government pension, it's very confusing at times.

[The Cyclist]

4 hours ago, essexman said:

Yes, one is a Government pension,  

 

unfortunately, as @chiang mai has pointed out, the State Pension is not a Government Pension and as such needs to be declared on a ThaimTax return.

[chiang mai]

A conundrum:

 

Only about 3.4 million people pay income tax in Thailand yet in 2023, revenue from PIT 395,744 million baht.

 

That averages to about 113k baht per person!

 

We know the poor don't pay taxes and it's said that the wealthy can always evade taxes....so who are these 3.4 million people and what is this source of revenue? Inheritance perhaps? Dunno.

 

[oldcpu]

56 minutes ago, chiang mai said:

....so who are these 3.4 million people and what is this source of revenue? Inheritance perhaps? Dunno.

 

My Thai wife (and her brother and his spouse) pay annual Thai income tax - each paying tax exceeding the amount noted.

 

That leaves 3,399,997 people to account for. 😅

[The Cyclist]

1 hour ago, chiang mai said:

A conundrum:

 

Only about 3.4 million people pay income tax in Thailand yet in 2023, revenue from PIT 395,744 million baht.

 

It will be a conundrum for some posters on this thread.

 

About 9.9 million file tax returns, yet out of those 9.9 million only about 3.4 million actually pay Income Tax.

 

Another 3 million or so file to reclaim various witholding taxes.

[chiang mai]

5 minutes ago, The Cyclist said:

 

It will be a conundrum for some posters on this thread.

 

About 9.9 million file tax returns, yet out of those 9.9 million only about 3.4 million actually pay Income Tax.

 

Another 3 million or so file to reclaim various witholding taxes.

Indeed, and the remaining third or so, file returns but neither pay tax nor receive a refund.

[KannikaP]

On 12/4/2024 at 1:58 PM, essexman said:

Would some kind person tell me the different allowances I will be able to claim when I visit the tax office?  I have two small pensions coming directly to my Thai bank account from the UK.  I know about the 190.000 for being over 65, and the 60.000 each for the wife and myself.  I read somewhere that the first 1000.000 of my pension is not taxable, am I correct in thinking that?  Now, one I've been told, but never seen written is that the first 150000 of my assessable income is zero-rated.  Is this true?  I have some health insurance and read somewhere that you can claim up to 25.000.

Thanks in advance for any information.

Also, I had some advice earlier in the year from Mike Lister.  He was very helpful, Looks like he hasn't been active for quite a few months, I hope he is okay.

Let me tell you how it will be!  That is exactly what my friendly Taxman allowed me/ 190k + 60k +100k = 350k.

I send 35k per month = 420k, so potentially I will have to pay 420 - 350 = 70k @ 5% = 3500.

[chiang mai]

3 minutes ago, KannikaP said:

Let me tell you how it will be!  That is exactly what my friendly Taxman allowed me/ 190k + 60k +100k = 350k.

I send 35k per month = 420k, so potentially I will have to pay 420 - 350 = 70k @ 5% = 3500.

You forgot the 150k tax free band, that means you have no tax to pay.

[KannikaP]

Just now, chiang mai said:

You forgot the 150k tax free band, that means you have no tax to pay.

Ooops, yes. That's why he said ZERO to pay. Thanks.

[anchadian]

Several years ago I dealt with Krungsri Assets purchasing a dividend share and eventually receiving a tax withholding certs (not for this tax year).  I've looked back and on the TWC there is a Fund tax ID number.  Would this be the same number as a Tax ID? 

 

เลขประจําตัวผูเสียภาษีอากรของผูจายเงินได
Fund Tax ID No. 13 digits.

 

I can always call them on Monday.

 

 

[chiang mai]

2 minutes ago, anchadian said:

Several years ago I dealt with Krungsri Assets purchasing a dividend share and eventually receiving a tax withholding certs (not for this tax year).  I've looked back and on the TWC there is a Fund tax ID number.  Would this be the same number as a Tax ID? 

 

เลขประจําตัวผูเสียภาษีอากรของผูจายเงินได
Fund Tax ID No. 13 digits.

 

 

That appears to be the tax ID of the fund.

[anchadian]

Thanks again for your response CM, that's what I thought.

A trip to the IR next year, that's for sure.

[Liquorice]

@essexman

Sent a PM.

[chiang mai]

I was reviewing my own taxes and getting ready for January when  I realised there's a small but important naming issue.

 

We all have TEDA, (Tax Exemptions, Deductions and Allowances) plus the first 150k of income is zero rated for tax. BUT, that first 150k is NOT a part of TEDA, it is a separate zero rated tax band. I think it's important to understand the difference when you're talking to TRD staff. If you say you have 500k in TEDA they may look at you and think that's odd and start to ask questions. I for example have 380k in TEDA, plus 150k of zero tax rated income, making a total of 530k. My 60k Personal Allowance is part of my TEDA, as is my 100k expenses for pension income, my 190k for over age 65 years and my 30% of rental income expense. But the 150k of zero rated income is not part of TEDA, it's a tax band.

[Presnock]

1 hour ago, chiang mai said:

I was reviewing my own taxes and getting ready for January when  I realised there's a small but important naming issue.

 

We all have TEDA, (Tax Exemptions, Deductions and Allowances) plus the first 150k of income is zero rated for tax. BUT, that first 150k is NOT a part of TEDA, it is a separate zero rated tax band. I think it's important to understand the difference when you're talking to TRD staff. If you say you have 500k in TEDA they may look at you and think that's odd and start to ask questions. I for example have 380k in TEDA, plus 150k of zero tax rated income, making a total of 530k. My 60k Personal Allowance is part of my TEDA, as is my 100k expenses for pension income, my 190k for over age 65 years and my 30% of rental income expense. But the 150k of zero rated income is not part of TEDA, it's a tax band.

Not sure if you noticed yesterday's BP where pary head advised finance minisrter pichai that nothing has been said lately about the tax schemes and he should update all as even the govt has no idea where the discusion. Maybe he will tell us too. stands.http://bangkokpost.com/business/general/2915171/paetongtarn-dumps-15-vat-Plan

[chiang mai]

2 minutes ago, Presnock said:

Not sure if you noticed yesterday's BP where pary head advised finance minisrter pichai that nothing has been said lately about the tax schemes and he should update all as even the govt has no idea where the discusion. Maybe he will tell us too. stands.http://bangkokpost.com/business/general/2915171/paetongtarn-dumps-15-vat-Plan

That's the first I've read where it's said that even PIT is unclear, I can only presume they refer to the reinterpretation mentioned in Por161. It was always a possibility that the reinterpretation could be revisited and revert back to the way things were but it makes zero sense to do that hence I consider that has a very small chance of reversion. Other aspects of PIT however might change, I agree with that.

[MrMuddle]

Can anyone recommend a decent tax accountant in Phetchabun? UK citizen, living in Thailand since 2009,  I'm completely lost as to what to do with this new tax situation. Thanks