Accounting and Tax

1. Personal Income Tax
2. Corporate Income Tax
3. Stamp Duty
4. Specific Business Tax

In Thailand, there are several other legal authorities that can collect taxes e.g. Custom departments are legally responsible to collect taxes on the import and export of products, enforce the tax law and make guidelines or policies. Similarly Excise department is responsible for the excise taxes and the Land department is responsible for the collection of property tax, stamp duty, etc.

Personal Income Tax:

The personal income tax is levied on any individual working as an employee or ordinary partnership, a non-juristic body. The individual is legally responsible to submit tax returns and pay the taxes on a yearly basis. In Thailand if anyone is living for more than 180 days is responsible to pay the personal income tax. Personal Income Tax is only for a person who is not running a company or any business association, etc. The Personal Income Tax is implemented according to the level of the income. More the level of income, more will be the personal income tax. According to the tax law of Thailand disabled person and senior citizen taxpayer i.e., 65 years or more than 65 is exempted from the personal income tax. They do not have any legal liability to pay the taxes. Similarly, if a person has income of 150,000 baht or less than it, is exempted from the personal income tax.

Structure:

Tax deductions:

There are also allowances and deductible expenses in Thailand for every individual taxpayer and they have the legal right to claim the following:

1. Personal allowance of 60,000 baht
2. Expense allowance of 50 percent but should not exceed 100,000 baht.
3. Child allowance of 30,000 baht
4. Retirement Insurance Premium up to 20,000 baht
5. Mortgage interest up to 100,000 baht
6. Social security fund. retirement mutual fund, etc. up to 9,000 baht
7. Insurance Premium up to 100,000 baht.

Corporate Income Tax:

The Corporate Income Tax directly implements on the juristic bodies i.e. limited companies, business organizations, registered ordinary partnership, running any business association to generate revenue or any other profit-making business. The limited companies in Thailand regulate and run under the Thai and foreign law so both types of companies with different laws are legally responsible to pay corporate income tax and submit tax returns. If any two people are working with each other to generate the revenue i.e. profit making activity then they are also legally responsible to pay corporate income tax. In Thailand, the Corporate Income Tax is fixed I.e. (The corporate income tax (CIT) rate is 20%) so the companies or other business associations are bound to pay the fixed taxes and submit the tax returns.

Companies and juristic partnerships with paid-in capital not exceeding 5 million Thai baht at the end of any accounting period and income from the sale of goods and/or the provision of services not exceeding THB 30 million are subject to tax at the following rates: