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Tax-free earnings in Thailand??

Discussion in 'Tax issues' started by Randy, 24 Apr 2014.

  1. Randy

    Randy Thread Starter New Member

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    A Filipino colleague of mine has been paying tax on his salary for a few years now. He earns less than 20k per month. I had a friend a while back who was teaching part-time, I can't remember exactly how much he was earning but I'm pretty sure it was less than 20k per month. He told me that because he earned under a certain amount per month he was exempted from paying any tax. Is this true? and if so what is the maximum salary before tax? It would be nice to help out a friend, I imagine if he is tax exempt he would be entitled to a handsome rebate by now. Thanks for any help clarifying this matter.
     
  2. Stamp

    Stamp Administrator Staff Member

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    Everybody who's working has to file personal income tax before the first of April following the taxable year. Whether you have to pay (additional) personal income tax or will get back depends on the height of the taxable income which is determined by the salary/ allowances and deducted tax payments.

    Below is the table.

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    Below's the table of allowances.

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    Capture_10.jpg

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    Last edited by a moderator: 26 Apr 2015
    Mister T likes this.
  3. luibkk

    luibkk Well-Known Member

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    Your friend shouldn't pay any income tax at all. Basically it's 240,000 THB that is tax free because it includes another 60,000 THB deduction that is not shown in the table above. I can't find the clause in question at the moment but I will post the source as soon as I can locate it.
    Your friend can still file the tax return at the local revenue office, even after the 31 March. The revenue office may fine your friend a small sum for filing late. The downside is that it can be done only for the last two years afaik. I think it will still be worth trying to get some money back. Good luck!

    Okay. I found it, here it is. ::Personal Income Tax::

    40% but not exceeding 60,000 THB are deductible from your income from employment.

    TAXABLE INCOME = Assessable Income - deductions - allowances

    Deductions allowed for the calculation of PIT

    Type of Income Deduction
    a. Income from employment 40% but not exceeding 60,000 baht
    b. Income received from copyright 40% but not exceeding 60,000 baht
    c. Income from letting out of property on hire
    1) Building and wharves 30%
    2) Agricultural land 20%
    3) All other types of land 15%
    4) Vehicles 30
    5) Any other type of property 10%
    d. Income from liberal professions 30% except for the medical profession where 60% is allowed
    e. Income derived from contract of work whereby the contractor provides essential materials besides tools actual expense or 70%
    f. Income derived from business, commerce, agriculture, industry, transport, or any other activities not specified in a. to e. actual expense or 65% - 85% depending on the types of income
     
  4. Rastus

    Rastus Well-Known Member

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    Not everybody has the same circumstances so your colleague should read this ::Personal Income Tax:: himself but for general guidance, here's a simple example for a single person ...


    The first 150,000 of taxable income is exempt from income tax
    Up to 60,000 earned from employment is not assessable for tax purposes
    A single person gets a personal allowance of 30,000
    ____________________________________________
    150,000 + 60,000 + 30,000 = 240,000 per year

    240,000 / 12 = 20,000 per month

    . . . . . . .

    If your employer regularly deducts money for income tax purposes, it might be an idea for your friend to inform them of the personal allowances and exemptions available to him, point out that he will not/does not exceed this and then ask them nicely not to make deductions for income tax purposes. Your colleague will then receive more money per month and not have to wait for a rebate at the end of the tax year to get his money.
     
  5. Randy

    Randy Thread Starter New Member

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    Thanks for the help guys. I'll pass on this helpful information and hopefully my buddy will get some cash back. Much appreciated!

    - - - Updated - - -

    Thanks for this advice Rastus. It looks like my friend will have to have a chat with the administration about this.
     

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