Reported by

Princess Joy G. Florentin

on
November 29, 2014

Revenue Department
founded

on September 2, 1915 by King

Rama VI, following on from King Rama V's
visions to establish countrywide
infrastructure, and to provide a revenue
collection platform in order for Thailand to
remain aligned internationally.

 Taxation

is the main source of

government's revenue.
A large part of tax collection comes from
three main agencies under the Ministry of
Finance:
1. Revenue Department,
2. Excise Department,
3. Customs Department
which collectively account for about 8590% of the government's revenue. The
Revenue Department itself collects more
than half of the total tax collection.

a direct tax levied on income of a

person.
Taxable Persons
Natural persons;
Body of persons;
Unregistered ordinary partnerships;
Deceased;
Undistributed estate of the
deceased.

1.

Resident

any person residing in Thailand

for
a
period
or
periods
aggregating 180 days or more
in any tax (calendar) year.

liable to pay tax on income from

sources in Thailand as well as on
the portion of income from
foreign sources that is brought
into Thailand.

2.

Non-resident

subject to tax only on income

from sources in Thailand.

The income chargeable to the

PIT is called assessable income.

covers income both in cash and

in kind.

Income from employment with an

employer;
2. Income by virtue of positions or
services rendered;
1.

3.

Income from goodwill, copyright,

franchise, other rights, annuity,
etc.;

4.

Income in the nature of dividends,

interest on deposits with banks in
Thailand, shares of profits or other
benefits from a juristic company,
juristic partnership, or mutual fund,
payments received as a result of the
reduction of capital, a bonus, an
increased capital holdings, gains
from amalgamation, acquisition or
dissolution of juristic companies or
partnerships, and gains from
transferring of shares or partnership
holdings;

Income from leasing of property

and from breaches of contracts,
installment sales or hire-purchase
contracts;
6. Income from liberal professions;
7. Income from construction and
other contracts of work;
8. Income from business, commerce,
agriculture, industry, transport or
any other activity not specified
earlier.
5.

Taxpayer shall make deductions

from assessable income before
the allowances are granted.
Therefore,
Assessable Income

Deductions
Allowances
TAXABLE INCOME

Any taxpayer who domiciles in

Thailand and receives dividends from
a juristic company or partnership
incorporated in Thailand is entitled to
a tax credit of 3/7 of the amount of
dividends received. In computing
assessable income, taxpayer shall
gross up his dividends by the amount
of the tax credit received. The amount
of tax credit is creditable against his
tax liability.

 In the case where income categories

(2) - (8) mentioned in Assessable
Income are earned more than
60,000 Baht per annum, taxpayer has
to calculate the amount of tax by
multiplying 0.5% to the assessable
income and compare with the
amount of tax calculated by
progressive tax rates.
Taxpayer is liable to pay tax at the
amount whichever is greater.

There are several types of

income that the taxpayer shall not
include or may not choose to
include such income to the
assessable income in calculating
the tax liability.

Those acquired by bequest or by

way of gift.

EXCEPT, if the sale is made

for a commercial purpose.

The following forms of interest

income may, at the taxpayers
selection, be excluded from the
computation of PIT provided that
a tax of 15% is withheld at
source:
a.

interest on bonds or
debentures issued by a
government organization;

interest on saving deposits in

commercial banks if the aggregate
amount of interest received is not
more than 20,000 baht during a
taxable year;
c. interest on loans paid by a finance
company;
d. interest received from any financial
institution organized by a specific
law of Thailand for the purpose of
lending money to promote
agriculture, commerce or industry.
b.

 Those

received by a resident
taxpayer from a registered
company or a mutual fund which
tax has been withheld at source at
the rate of 10%
However,

in doing so, taxpayer

will be unable to claim any
refund or credit (Tax credit for
dividends).

Tax Year
Calendar Year
Filing Date
No later than March 31 of the
following year

 Taxpayers who derive income in

relation to
1. the lease of property;
2. liberal professions
3. contractual work; and
4. other businesses, commerce or
industries
must ALSO file a mid-year tax return by
September 30 in respect of income
derived during the first 6 months of the
taxable year. Tax paid at the time of the
mid-year filing is creditable against the
annual tax liability.

1. A taxpayer may be assessed for

additional tax by an assessment officer.

These may be reduced by 50% upon

submission of a written request by the
taxpayer and the assessment officer is of
the opinion that the former did not
intend to evade tax.

2. Failure to pay or remit tax within specified

time
1.5% per month, or a fraction thereof, of
the amount of tax to be paid or remitted
subject to a maximum amount equal to
the amount of tax to be paid or remitted.
In the case where a Director-General
extends the time limit for tax payment or
tax remittance, and the tax is paid or
remitted within the extended time, the
surcharge shall be reduced to 0.75% per
month or a fraction thereof.

http://www.rd.go.th/publish/6045.0.html
http://www.pwc.com/th/en/publications/2014/
2014-thai-tax-booklet-web.pdf