• Personal Income Tax Changes for 2017
Tax Updates:

Personal Income Tax Changes for 2017

10 January 2017

Paul Ashburn , Co - Managing Partner |
Duangnetr Sarachai , Principal, Tax & Legal Services |

A number of revisions to Thailand's personal income tax structure are scheduled to enter into force from 1 January 2017. The revisions include increased standard deductions and adjusting the income bands so that the top marginal tax rate of 35% will apply to net income over THB 5M rather than THB 4M.

Revisions to Thailand's Personal Income Tax structure are scheduled to enter into force from 1 January 2017.

The revisions include:

  1. The top marginal tax rate of 35% will now apply to net income over THB 5M. Previously it applied to income over THB 4M.
  2. Increase in standard expenses deduction from 40% to 50% of employment income with a ceiling of  THB 100,000 rather than THB 60,000.
  3. Doubling of the personal allowance deduction from THB 30,000 to THB 60,000.
  4. Doubling of the spouse allowance deduction from THB 30,000 to 60,000.
  5. Doubling of the child allowance deduction from THB 15,000 per child to THB 30,000 per child without limitation on the number of children that may be claimed. The deduction was previously limited to 3 children. The additional child education allowance of THB 2,000 per child has been cancelled as a result of the amendments to the standard child allowances.

The revisions will result in employees in general paying less personal income tax in 2017.

Revisions have also been made to increase expenses and allowances that can be claimed by undivided estates, ordinary partnerships and bodies of persons, and for income falling under Section 40 (3) of the Revenue Code e.g. copyright income.

The new personal income tax rates effective in 2017 are shown in the table below.

Personal income tax rates prior to 2017

New personal income  tax rates in 2017

 Taxable Income

Tax Rate

Taxable Income

Tax Rate

 0-150,000

 0%

 0-150,000

 0%

 150,001 - 300,000

 5%

 150,001 – 300,000

 5%

 300,001 – 500,000

 10%

 300,001 – 500,000

 10%

 500,001 – 750,000

 15%

 500,001 – 750,000

 15%

 750,001 – 1,000,000

 20%

 750,001 – 1,000,000

 20%

 1,000,001 – 2,000,000

 25%

 1,000,001 -2,000,000

 25%

 2,000,001 – 4,000,000

 30%

 2,000,001 – 5,000,000

 30%

 4,01000,0 and over

 35%

 5,000,001 and over

 35%

 

The legislation enacting these revisions had not been passed at the time of writing.