Tax News No. 236 August 2016
Topix
To adjust the structure of personal income tax in year B.E. 2560 (2017)
Salary not more than 26,000 Baht shall not be paid tax, and shall be enforced in tax year B.E. 2560 (2017) (filing tax return in year B.E. 2561 (2018)).
Summary
- To adjust tax rate in the range of 30 per cent and 35 per cent
| New personal income tax rate |
| Net income per year |
Personal income tax rate |
| 0 – 150,000 Baht |
Be exempted |
| 150,001 – 300,000 Baht |
5 % |
| 300,001 – 500,000 Baht |
10 % |
| 500,001 – 750,000 Baht |
15 % |
| 750,001 – 1,000,000 Baht |
20 % |
| 1,000,001 – 2,000,000 Baht |
25 % |
| 2,000,001 – 5,000,000 Baht |
30 % |
| More than 5,000,001 Baht |
35 % |
- To increase the limit of deducting an expense
A standard deduction is 50 % of income but not exceeding 100,000 Baht (Previous standard deduction is 40 % of income but not exceeding 60,000 Baht).
- To increase the allowances
- Taxpayer can be allowed for 60,000 Baht (previous allowance is 30,000 Baht).
- The spouse can be allowed for 60,000 Baht (previous allowance is 30,000 Baht).
- Children can be allowed for 30,000 Baht per person and no limit of children (previous allowance is 15,000 Baht per person and children are not more than 3 person).
[Old and new comparison]
| Change point |
| Previous |
New |
| First 150,000 Baht shall not be paid tax. |
First 150,000 Baht shall not be paid tax. |
| Expense can be deducted for 60,000 Baht. |
Expense can be deducted for 100,000 Baht. |
| Allowance(single) can be deducted for 30,000 Baht. |
Allowance(single) can be deducted for 60,000 Baht. |
| A person who has salary not more than 20,000 Baht (single), does not have to pay tax. |
A person who has salary not more than 25,834 Baht (single), does not have to pay tax. |
| Tax rate |
| Previous |
New |
| 0 – 150,000 Baht |
Be exempted |
0 – 150,000 Baht |
Be exempted |
| 150,001 – 300,000 Baht |
5% |
150,001 – 300,000 Baht |
5% |
| 300,001 – 500,000 Baht |
10% |
300,001 – 500,000 Baht |
10% |
| 500,001 – 750,000 Baht |
15% |
500,001 – 750,000 Baht |
15% |
| 750,001 – 1,000,000 Baht |
20% |
750,001 – 1,000,000 Baht |
20% |
| 1,000,001 – 2,000,000 Baht |
25% |
1,000,001 – 2,000,000 Baht |
25% |
| 2,000,001 – 4,000,000 Baht |
30% |
2,000,001 – 5,000,000 Baht |
30% |
| > 4,000,000 Baht |
35% |
> 5,000,000 Baht |
35% |
| Personal Allowance |
| Previous |
New |
| Can be deducted for 30,000 Baht |
Can be deducted for 60,000 Baht |
| Allowance for Spouse |
| Previous |
New |
| Can be deducted for 30,000 Baht |
Can be deducted for 60,000 Baht |
| Allowance for Children |
| Previous |
New |
| Can be deducted not more than 3 person for 15,000 Baht / person |
Can be deducted for 30,000 Baht per person and no limit of children |
| Allowance for Children Education |
| Previous |
New |
| Can be deducted for 2,000 Baht per person |
Cannot be deducted |
Index of legal movement in relation to business
Interested tax news
Royal Decree Issued under the Revenue Code. Regarding Designation of Business Exempted from Specific Business Tax (No.609) B.E.2559
Royal Decree Issued under the Revenue Code. Governing Exemption from Revenue Taxes (No.610) B.E. 2559
Royal Decree Issued under the Revenue Code. Governing Exemption from Revenue Taxes (No. 611) B.E. 2559
Royal Decree Issued under the Revenue Code. Regarding Reduction and Exemption from Revenue Taxes (No.612) B.E. 2559
Royal Decree Issued under the Revenue Code. Regarding Exemption from Value Added Tax (No.613) B.E. 2559
Ministerial Regulation No. 314 (B.E. 2559) Issued under the Revenue Code. Governing Exemption from Income Tax
Ministerial Regulation No. 315 (B.E. 2559) Issued under the Revenue Code. Regarding Exemption from Revenue Taxes
Ministerial Regulation No. 316 (B.E. 2559) Issued under the Revenue Code. Governing Exemption from Revenue Taxes
Director-General Notification
Designation of Rules, Procedures and Conditions of Reduction on Income Tax Rate, Exemption from Income Tax and Exemption from Specific Business Tax of Company which Carries on International Headquarter Business
GorKor 0702/687 Date: 28 January 2016
Corporate Income Tax in case of deducting expenses in net profit computation from sale promotion
GorKor 0702/4780 Date: 13 June 2016
Corporate income tax, value added tax and withholding tax in case of hiring for painting line installation
