Connect with us

Business

Phuket business: Tax filing deadline approaches

Published

 on 

PHUKET: For anybody who generated income in Thailand last year – regardless of where or how they were paid – the personal income tax filing deadline is March 31.

In this two-part series, the Phuket Gazette will outline the need-to-know basics for filing personal income tax in Thailand.

First, we will cover taxable income, deductions and tax certificates. In the next part, we will go over tax allowances, and how to apply progressive tax rates.

When it comes to taxes, many residents prefer to let a trusted partner or certified accountant on the payroll take care of everything.

In this case, it is important for whoever calculates your taxes to be aware of all your traceable income sources. This will ensure that they calculate and withhold the correct amount of tax, otherwise you may find yourself with an unexpected bill.

For those with multiple income sources, and those who are required to file a tax return with their respective home country, Americans for instance, it’s a good idea to have a good grasp on your finances, so you can benefit from tax treaty benefits.

Thailand has tax treaties with at least 55 countries, with 10 more on the table for negotiations.

Contrary to common office talk, luck has nothing to do with determining whether one will receive a bill or a check from Thailand’s revenue department. With a basic understanding of the system, filing procedures and regulations, tax payers can determine pretty easily before filing if they are owed or will owe.

The value of taxable income (Ti) will determine one’s income bracket and thus the tax rate they should have paid.

Before you can determine your income bracket rate, you have to determine how much of your income is actually taxable. The government overlooks a certain amount of your earnings to compensate for living expenses.

To calculate Ti, the formula is Ai – (D +A), where Ai is Accessible income, D is Deductions and A is Allowances.

Ai is your gross income, not necessarily how much you actually got paid.

The value of D accounts for basic living costs and depends on the category of income(s).

The Revenue Department identifies six categories of income including regular employment, copyright, property rental (with five subcategories), liberal professions, contracted work and a broad “other” category.

Most regular employees fit into the first category and are thus allowed to deduct a maximum of 60,000 baht for living expenses which is applied to the entire tax year, regardless of how much they actually spent on rent, food and other necessities.

Those who had gross income of less than 150,000 baht (US$ 5,000) can only deduct 40% of all wages, however.

For example, if last year you only made 100,000 baht (US$ 3300), you would be entitled to deduct 40,000 baht for living expenses, not 60,000 baht.

Income from contracted jobs, rental income, and dividends may also allow for certain deductions.

Whether you can actually claim these extra deductions will depend on the category identified on the withholding tax certificate.

This certificate is an official receipt of tax paid and is known as the PND Form.

PND is a transliterated acronym from “Por Ngor Dor” which stands for Pasee Ngoen Deuan, or literally, “tax income”.

If an employer withheld tax, then they must issue a PND to show it was paid. For fixed salaries, the company will issue a single PND summary of the tax year, but for other, irregular income sources, a separate PND for each payment should be issued.

Whether you’re filing the PNDs yourself or someone else does so on your behalf, all liability and responsibility for erroneous calculations and owed payments will ultimately fall on the employee.

Every source of income requires its own PND. There are at least 8 different PND forms (1a, 1a special, 2, 3, 2a, 3a, 53, and 54) which vary depending on the category of income and tax payer’s resident status.

In conclusion, use the PND to determine D.

In the next issue, we will cover Allowances (A) and how to apply and calculate Thailand’s progressive income rates.

Disclaimer: The information provided in this article is based on the personal experience of the author and direct inquiries with the Revenue Department. The Phuket Gazette will not be held liable for damages caused by misuse, misinformation or misunderstanding. All specific tax issues should be directly addressed with the Revenue Department. For more information, see W: rd.go.th, or T: 1161.

— Steven Layne

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Video4 hours ago

Timeline of the mass shooting in Thailand

Crime5 hours ago

Finnish CEO detained for alleged mistreatment of 1,100 Thai berry pickers

Thailand6 hours ago

Thailand News Today | No drugs detected in system of daycare center killer

Sponsored13 hours ago

5 reasons why Thailand educators shouldn’t miss Bett Asia in Bangkok this year

Myanmar6 hours ago

Burmese junta sentences Japanese journalist for sedition and other charges

Thailand6 hours ago

Thai woman & foreign men charged for child sex trafficking in Pattaya

Guides6 hours ago

10 strange laws to be aware of in Thailand

Join the conversation on the Thaiger Talk forums today!
Thailand6 hours ago

Love rat Thai soldier threaten’s Israeli husband of adulterous wife

Best of7 hours ago

Outstanding halal restaurants in Bangkok

Pattaya7 hours ago

Pattaya dwellers want public restrooms built faster at pier

Thailand7 hours ago

No Buddhist temples willing to cremate body of daycare centre killer

Phuket8 hours ago

AI upgrade planned for pier in Phuket

Medical8 hours ago

When snakes strike, why not call for the chicken-ass squad?

Crime8 hours ago

Massacre in Thailand: No drugs detected in system of daycare centre killer

Thailand8 hours ago

Woman’s body in suitcase identified as Lao millionaire

Crime8 hours ago

Massacre in Thailand raises questions on gun control

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending