Thailand Income Tax

• Individuals Exempt From Income Tax
• Countries with Double Tax Agreement
• Personal Deductions
• Tax Computations

Individuals Exempt From Income Tax

• Persons in accordance with the obligation of Thailand under compacts on economic and technical cooperation between the Thai government and foreign governments.

• Officials or experts of the United Nations Organization or its specialized agencies performing their duties in Thailand, whenever Thailand is under the obligation to grant exemption under a convention or agreement, (which is the General Convention or agreement, Privileges and Immunities of the United Nations).

• Members of diplomatic or consular corps and persons who are by agreement regarded as members of diplomatic corps, subject, however, to the principle of reciprocal treatment.

• Individuals possesing American nationality who are employes or personnel of the juristic companies and partnerships organized under the laws of the United States, which are parties to contracts with the United States Government in respect of the business carried on in Thailand in connection with the maintenance of military equipment and supplies and related services performed under contracts entered into between such juristic companies or partnerships and the United States Government for the project approved by the Thai Government, provided that such juristic companies or partnerships do not carry on any other business, and such individuals entered into Thailand solely for the execution of the described work.

• Members of a cooperative receiving dividend or profit destribution from the cooperative.

Countries with Double Tax Agreement

Norway, Sweden, Denmark, Japan, Germany, France, Sri Lanka, The Netherland, Singapore, Korea, Italy, United Kingdom, Pakistan, Belgium, Indonesia, Malaysia, the Philippines, Poland, Bangladesh, India, Finland, Austria, Hungary.

Personal Deductions

40 % of salary but not exceeding 60,000 Baht.
Joint Application : If spouse is employed, than each is entiled to 40 % but not exceeding 60,000 Baht together.

Allowances.

30,000 Baht for taxpayer.
Joint Application : An additional 30,000 for tax-payer's spouse.

Children.

15,000 Baht per child upto a maximum of 3 children for children born after 1979.
15,000 Baht per child for children born before or in 1979.

Life Insurance.

The amount paid towards Life Insurance for a duration of ten years or more with an Insurer carrying on business in Thailand but not exceeding 10,000 Baht.
Joint Application : The tax-payer's spouse's insurance premium to be included and not exceeding 10,000 together.

Providend Fund.

The amount contributed towards providend Fund but not exceeding 10,000 Baht.
Joint Application : The tax-payers's spouse to be included if spouse contributes towards her fund but not exceeding 10,000 together.

Housing Loan.

Interest paid towards housing loan but not exceeding 10,000 Baht.

Social Insurance or Security.

Total amount paid to Social Insurance or Security.

Donations.

Amount donated to government-owned clinics and educational institutions.

Amount donated for public benefits.

Tax Computations

Proposed New Tax structure to be effective 1st Jan 1998

Net Taxable Income	Tax Rate	Tax Amount	Cumulative Tax
1 to 200,000	5 %	10,000	10,000
200,001 to 500,000	10 %	30,000	40,000
500,001 to 1,000,000	20 %	100,000	140,000
1,000,001 to 4,000,000	30 %	900,000	1,040,000
4,000,000 and above	33 %

New Thai Taxation,
February 1993,
Dr. Suvaran Valaisathien,
L.L.B. (magna cum laude),Chulalongkorn Diploma,
Barrister-at-law L.L.M,, Harvard
S.J.D., Geroge Washington.

Published in Association with
Finance One Public Company Limited.

Price : 700 baht.

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