Under Thai Revenue code, a personal who live in Thailand more than 180 days or receive income from Thailand required to declare a tax return called PND90 or PND91 to the Revenue Department.
For foreigners who worked in Thailand, it is always require submitting PND90 or PND91 because it is the required documents to for visa and work permit renewal even you live less than 180 days.
Type of Income
There is majority of 8 types of income that a person needs to declare in PND90 or PND91 as follows
- Wages or Salary
- Commission
- Loyalty fee
- Interest and Dividend
- Rental fee
- Professional Service fee – only the services describe by laws.
- Construction fee
- Others apart from (1)-(7)
When submit income only from (1) Wages or Salary, the submission form is PND91 but when a person has income from (2)-(8), they need to use PND90 form.
Tax Rates in Thailand
The system of tax rate in Thailand is calculate by using accumulate income rule which the net income will be used to calculate tax step by step as below.
| Net Income (Baht) | Tax Rate |
| 1-150,000 | Exempt from tax |
| 150,001-300,000 | 5% |
| 300,001-500,000 | 10% |
| 500,001-750,000 | 15% |
| 750,001-1,000,000 | 20% |
| 1,000,001-2,000,000 | 25% |
| 2,000,001-5,000,000 | 30% |
| 5,000,001 and over | 35% |
Tax Deduction and Allowance
*Information in this section can change time to time upon regulation enact in each year.
When a person falls under the below criteria or purchase the item define below, the deduction amount can be used to reduce income tax.
| Deduction items | Deduction amount |
| Personal Expenses | 50% of total income but not more than 100,000 thb (when income come from (1) wage or salary) |
| Personal Allowance | 60,000 thb |
| Spouse allowance (when spouse has no income) | 60,000 thb per spouse (maximum one) |
| Child allowance (when has income below 30,000 thb and age below 20 or below 25 if study in university) | 30,000 thb per child (maximum three) |
| Parent age more than 60 (when has income below 30,000 thb) | 30,000 thb per person |
| Life Insurance Premium (Policy term more than 10 years) | 100,000 thb |
| Health Insurance Premium | 25,000 thb when include life insurance premium not more than 100,000 thb |
| Provident Fund | Maximum at 15% of Salary but total not more than 500,000 thb |
| Retirement Mutual Fund | Maximum at 30% of Income but total not more than 500,000 thb |
| Super Saving Fund (SSF) | Maximum at 30% of Income but total not more than 200,000 thb |
| Donation | Maximum at 10% of Income |
Tax Refund and Tax Payment
When you finished calculating your tax duty, you will find the amount of tax that you need to pay additionally. You have to pay this amount when you do the submission.
However, you can find that you might get your tax back called tax refund, in this case, you will get it via cheque. But sometime before the revenue department approve your refund, you have to submit the deduction supporting documents to the revenue department, otherwise that deduction cannot be use.
Submission
A person can submit the tax return form (PND90 or PND91) via the revenue office website or submit the hard copy at the revenue office near you.
If you are a foreigner, it is better to submit by hard copy get certified copy of PND90 and PND91 because it needs to use for visa and work permit renewal.
Penalty
When a person fails to submit the tax return form, the penalty is 2,000 thb and monthly penalty of 1.5% of tax rate.
Tax Payment Certificate
In case you wish to prove your payment of tax in Thailand to other countries tax bureau, you can contact the revenue office to provide tax certificate in English.
For more information, please contract ATA Outsourcing directly as this article give only general idea of personal income tax in Thailand which if you want to minimize your tax duty, you must contact us.
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