Personal Income Tax Caculation In Thailand

[thanchart]

According to the website of the Revenue Department, it is listed that Progressive Tax Rates is applied.

The table is as follows:

Taxable Income (Baht) ...................Tax Rate %

0 - 150,000 ........................................Exempt

150,001 - 500,000 .......................... .10%

500,001 - 1,000,000........................... 20%

1,000,001 - 4,000,000 ........................30%

4,000,001 and over..............................37%

However it is not clear if the tax is calculated at a flat rate (based in the whole Taxabkle Income), or is it applied progressively?

For example, if a person's Taxable Income for last year is say, 1.2 million baht, is he taxed progressively at 10% for the 1st 500.000 baht, then at 20% for the next 500,000 baht and for the next 200,000 baht, he pays 30% (this is the system used in Singapore which seemjs very fair and equitable).

Or does the person get taxed at 30% fflat or the whole 1.2 million baht?

What if the person has only been earning an income for 3 months? Is he going to be taxed based on what he has earned in the 3 months (tax reate based on the amount earned in 3 months) or is the tax rate based on what he would have earned in 1 year (had he otten the chance to work for 1 full year - monthly income x 12)?.

How about dededictibles adn allowance? Are they allowed iin full (1 year) or they are pro-rated for 3 months?

Hope TV members cam share their knowledge

Edited February 6, 2012 by thanchart

[jybkk]

The deductions and allowances are detailed in the link you provided. Main ones are th 40% deduction (limited to 60,000THB), and the allowances for single taxpayer/children.

After that, the calculation is progressive.

I'm not an accountant, but I've filled a few tax revenue form and usually my end result is pretty close from the one done at the tax office (they actually sometimes help you figure out some deductions you didn't think of).

If the annual salary is 1.2 million and the taxpayer worked only for 3 months (100K/month), calculation would be like this: total revenue is: 300,000.

Deduction on income: 40% of 300K = 120,000 => maximum is 60K

Then let's say that in our example the taxpayer is single, then there's another allowance of 30K

Taxable income is then 300K - 60K - 30K = 210K

First 150K are not taxed, so he'll pay 10% on 210-150 = 60K => Tax will be 6,000THB

Edited February 7, 2012 by jybkk

[thanchart]

First 150K are not taxed, so he'll pay 10% on 210-150 = 60K => Tax will be 6,000THB

Great, this is what I had expected. Maybe ,my office Accountant was not able to explain to me probably - sounded like its 30% on the whole taxable income; My figuresabove are fictitious but conecept here applies.

[InteractiveThailand]

If you are using an iphone or ipad you can download our free Thai Tax Calculator app here: http://itunes.apple.com/us/app/thailand-tax-calculator/id495105655?mt=8