Individual income tax structure changed: Thailand

[webfact]

TAXES
Individual income tax structure changed
The Nation

BANGKOK: -- The Cabinet approved Tuesday big changes in the individual income taxation structure.

In the executive decree, the maximum tax rate is lowered from 37 per cent to 35 per cent while tax brackets are expanded from five to seven during the 2013 and 2014 tax years.

Under the new brackets, the minimum 5 per rate will also be applied with taxable income upto Bt300,000, against Bt100,000 now. Those with taxable income below Bt150,000 will remain exempted from individual income tax.

Earlier, former Revenue Department director-general Satit Rungkasiri said that the change would dent the government’s tax revenue by Bt25 billion per annum. As taxpayers will pay lower taxes, this should boost domestic consumption and benefit the economy in the long term. Moreover, this would make Thailand attractive for overseas workers, which is crucial under the regional integration in Asean.


-- The Nation 2013-11-19

[dauu]

TABLE

[brit1984]

Amazing Thailand!!!

[Thai at Heart]

Benefit foreign workers? Go look at the rates for expatriates in Singapore....

[falang07]

still better than before

[meatboy]

still better than before

yep thats 300,000 bht interest that me and the wife can earn on our savings before we pay tax.

extra couple of cans

[webfact]

Cabinet approves new income tax ladder; 30k/month earners see tax halved

BANGKOK, 20 November 2013 (NNT) – The Cabinet has approved a bill that will result in the income tax rate on those earning between 150,000 and 360,000 baht per annum falling to 5%.

According to Ms. Bencha Luicharoen, the deputy minister of finance, the increase of income tax ladders from 5 to 7 steps was aimed at reducing tax burden on lower-income people. Previously, the 10% tax applied to those earning between 100,001 baht to 500,000 baht a yer. The new tax ladder will incur 5% tax on those earning between 150,000 baht and 360,000 baht per year. Effectively, those who earn up to 30,000 baht per month will have their income tax halved. Under the new ladder, those earning less than 150,000 baht per year will be exempt from personal income tax.

Ms. Bencha indicated the restructuring is expected to cost the government 27 billion baht in terms of revenue, but this trade-off will allow consumption to be boosted, which will benefit the national economy.

The new tax ladder will take effect for tax year 2013, meaning the new ladder will be used to calculate income tax during the January-March 2014 filing period.


-- NNT 2013-11-20

[meatboy]

still better than before

yep thats 300,000 bht interest that me and the wife can earn on our savings before we pay tax.

extra couple of cans

oops does the 15% tax withheld still stay the same? as the wife does not work and therefore the interest she earns is income.

[12DrinkMore]

still better than before

yep thats 300,000 bht interest that me and the wife can earn on our savings before we pay tax.

extra couple of cans

oops does the 15% tax withheld still stay the same? as the wife does not work and therefore the interest she earns is income.

You can claim that tax back in January.

[Loles]

Election is COMING

[tingtongteesood]

Trying to buy votes again. But they can steal as much as they like from the 2 trillion loan if it is allowed to pass so they won't care about tax any more....

[meatboy]

Trying to buy votes again. But they can steal as much as they like from the 2 trillion loan if it is allowed to pass so they won't care about tax any more....

shushhhhhhhhhhhhhhhhhhhhhhhhhhhhhh dont tell anyone but the thai senate passed it this morning 2.30am after the pubs closed.

[arminbkk]

So if let's say you have an annual income in 2013 of THB 400,000 then you are taxed 5% on THB 300,000 and 10% on THB 100,000 (i.e. THB 400K - THB 300K), so

therefore tax at THB 15,000 + THB 10,000 respectively and thus total THB 25,000 (before deducting withheld tax)?

[smileydude]

25 billion baht less to be embezzled? I doubt it.

More likely one of those short sighted, short term populist policies aimed at voters allegiance.

[TallGuyJohninBKK]

My wife and her salary stand to be affected by this...

So, does anyone here know:

Are the tax rates listed in the charts above graduated... meaning people who earn 300,000 per year will pay 0% on the first 150,000, and then 5% on the next 150,000?

Or, does it mean someone who earns 300,000 per year will pay 5% on the entirety of their income...and someone who earns 400,000 per year will pay 10% on the entirety of that?

[isawasnake]

Everyone pays 0% on the first 150k they earn. They NOW pay 5% (used to be 10%) on the next 150k etc... (refer to table)

Looking at these numbers, off the top of my head, this will save me about 35k on my taxes (cha-ching), and my LTF may save me another 25 or 30k (double cha-ching). I think I will take that ~60k and jam it into the Thai stock market, and and watch my free gift from the govt grow, hopefully.

Edited November 20, 2013 by isawasnake

[Saradoc1972]

Anyone got a clue how the Thai income tax system works with income not taxable in Thailand? Do they have a progression clause?

I.e. if you get income from a pension in your home country that per the applicable double-taxation treaty is taxable only in your home country, will that sort of lift the tax bracket for income you actually generate in LOS? (

And if so, do they bother?

[junkofdavid2]

So when we file our PND90/91 this coming March 2014 (for 2013 income), can we already use the new structure or do we still have to use the old structure (since 2013 is past income)?

[TallGuyJohninBKK]

Cabinet approves new income tax ladder; 30k/month earners see tax halved

BANGKOK, 20 November 2013 (NNT) – The Cabinet has approved a bill that will result in the income tax rate on those earning between 150,000 and 360,000 baht per annum falling to 5%.

According to Ms. Bencha Luicharoen, the deputy minister of finance, the increase of income tax ladders from 5 to 7 steps was aimed at reducing tax burden on lower-income people. Previously, the 10% tax applied to those earning between 100,001 baht to 500,000 baht a yer. The new tax ladder will incur 5% tax on those earning between 150,000 baht and 360,000 baht per year. Effectively, those who earn up to 30,000 baht per month will have their income tax halved. Under the new ladder, those earning less than 150,000 baht per year will be exempt from personal income tax.

Ms. Bencha indicated the restructuring is expected to cost the government 27 billion baht in terms of revenue, but this trade-off will allow consumption to be boosted, which will benefit the national economy.

The new tax ladder will take effect for tax year 2013, meaning the new ladder will be used to calculate income tax during the January-March 2014 filing period.

-- NNT 2013-11-20

I'm just noticing, the figures in this article are different than those in the red-colored charts that another member posted above.

The red chart says the new 5% tax rate will apply to income between 150,000 and 300,000 baht. This article says it's between 150,000 and 360,000 baht.

The red chart says the old 10% rate applied to income between 150,000 and 500,000. This article says it was between 100,001 and 500,000 per year.

I don't know which is correct. But the red charts had no source or attribution... whereas this article is a government news release.

[isawasnake]

Here is a useful chart if you want to know how much you will SAVE under the new system.

[junkofdavid2]

So based on the new tax structure, I estimate that by the end of the year, I will have *overpaid* by 17,000 baht.

How do I claim that back? (Preferably without going through the hassle of applying for a tax refund).

Can I just pay less in the next year?

Looking at my PND91, I can't see the item where I can input "excess payment from previous year". Is it there?

[isawasnake]

So based on the new tax structure, I estimate that by the end of the year, I will have *overpaid* by 17,000 baht.

How do I claim that back? (Preferably without going through the hassle of applying for a tax refund).

Can I just pay less in the next year?

Looking at my PND91, I can't see the item where I can input "excess payment from previous year". Is it there?

Supposedly, this new tax structure may not even take effect due to the protests. I would like to know which structure they will use also, it is kinda pertinent information

[junkofdavid2]

It will be in effect despite House dissolution, and can be applied to your 2013 earnings.

Source:

http://www.nationmultimedia.com/business/New-individual-income-tax-law-effective-in-2013-30222042.html

[Moobahn]

I'm trying to find out if I should file tax together with my wife or not? I make 650K and she makes 290k.

On some sites it's recommended to file together and on some sites it's not.

Would really appreciate some advise.

[cnx37]

If your sole income is bank interest, there is withholding tax of 15% FLAT - ie on every THB.

If I have an annual income of say B300,000, I assume that I am liable to pay tax @ (300,000-150,000) x 5% = B7500 under the new legislation.

The withholding tax on B300,000 @15% is B45000.

If so, I assume that I can lodge an income tax return & claim a refund of (B45000-B7500) = B37500.

Re refunds, can you go back a few years to claim refunds?

Procedure if applicable? Tax file number application - tax return - lodgement venue etc?

I would be surprised if the rates apply to ALL income ie property income too - interest, dividends, rent. My guess is that the income tax rates referred to above apply to personal exertion income ie salary. business income.