On 23 December 2013, the Thai Revenue Department announced that it would be reducing personal income tax rates for 2013 and 2014.
The new rates include an introduction of a 5%, 15% and 25% rate to the existing tax tiers. Of significance is the reduction of the maximum rate of 37% to 35%. There are now 7 tiers instead of the original 4. The announcement became effective on 24 December 2013.
Essentially, taxable net income is based on annual income less a deduction of 40% for living allowance (subject to maximum deduction of THB 60,000) and a deduction of THB 30,000 for individual allowance. There are also taxable deductions such as life insurance, parents allowance, and long-term mutual funds.
The tax rates are expressed in table form below:
|
Net Income (THB)
|
New Tax Rate (%)
|
|
0 – 150,000
|
Not required to pay tax
|
|
150,001 – 300,000
|
5
|
|
300,001 – 500,000
|
10
|
|
500,001 – 750,000
|
15
|
|
750,001 – 1,000,000
|
20
|
|
1,000,001 – 2,000,000
|
25
|
|
2,000,001 – 4,000,000
|
30
|
|
4,000,001 and higher
|
35
|
