Personal Income Tax (PIT) is a direct tax levied on a person. Under Thai law, a person means and individual, an ordinary partnership, a non-juristic body of a person (such as a trust), a deceased individual, or an undivided estate. In general, a person liable to PIT has to compute tax liability, file a tax return, and pay taxes due on a calendar yearly basis.

Taxpayers are classified into "resident" and "non-redisent". "Resident" means any person residing in Thailand for a period or periods longer than 180 days in any calendar year. A resident of Thailand is liable to pay tax on any income from sources in Thailand on a cash basis, regardless of where the money is paid, as well as income from foreign sources brought into Thailand. A non-resident is subject to tax only on income derived from sources within Thailand.

Income chargeable to PIT is called "assessable income". The term covers income both in cash and in kind. Therefore, any benefits provided by an employer or other persons, such as rent-free housing, are treated as assessable income of the employee for the purposes of PIT. Certain deductions and allowances are allowed in the calculation of taxable income. Therefore, taxable income is calculated by:

Taxable income = assessable income - deductions - allowances

Thailand's PIT has a progressive rate schedule, ranging from 0% for the first B80,000 neet income per annum, to 37% for B4 million and over. Taxpayers normally need to file a tax return on the last day of March for taxable income derived in the previous year.

Sutlet Group's Accounting Services Division are highly experienced in personal income tax consultancy and processing, focusing on client legality, tax planning and tax minimumisation. By placing your annual tax return in our hands, you can be sure that you pay on time only the tax you need to pay.