How to File Personal Income Tax in Thailand in 2022-23?
posted 9 months ago
Are you a Tax Resident of Thailand?
An individual’s income may be subject to personal income tax if it falls into the following categories:
- Benefits obtained in Thailand, whether monetary or non-monetary (paid in or outside Thailand)
- The income brought into Thailand within a year from a foreign source
Non-residents are only required to pay personal income tax on their income if they receive their benefits in Thailand.
Each year, both residents and non-residents must apply for a personal income tax ID and file a personal tax return in Thailand. If you are a foreigner staying for more than 180 days in Thailand in a single tax year and made income, you are a tax resident of Thailand.
What are the Types of Taxable Income in Thailand?
In Thailand, there are eight categories for assessing income:
- Earnings from employment, including wages, salaries, bonuses, gratuities, pensions, housing allowances, the monetary value of a home that an employer provides for free, the payment of an employee’s debt obligations by an employer, or any other money, asset, or benefit obtained from employment
- Income from jobs, employment offices, or services
- Goodwill, copyright, franchise, patent, and other rights income
- Income from interest, dividends, investor bonuses, gains from mergers, acquisitions, or dissolutions of businesses or partnerships, as well as gains from the sale of stock
- Property lease, violation of a hire-purchase contract, and installment sale deal
- Income from the liberal arts, engineering, architecture, accounting, and other professions
income from a work agreement where the contractor is responsible for supplying all necessary materials other than tools
- Earnings from commerce, business, agriculture, transportation, or any other activity not already listed
- Capital gains, as stated in the fourth point, are taxed as regular income. Moreover, capital losses cannot be used to offset capital gains, as is the situation in many other nations.
However, capital gains are not always taxable, and there are three exceptions:
- Income from earnings and salaries, including any perks offered by the company (such as stock option income, employer-paid personal income taxes, living expenses, the value of rent-free housing, etc.), but excludes costs for business travel and medical care.
- Gains on the selling of debt instruments or government bonds that don’t pay interest (although there are exceptions)
- Revenue from the sale of government bonds
Tax Season in Thailand is around the corner, therefore, to educate yourself with the updates and latest information, read through - https://www.konradlegal.com/2022/12/21/how-to-file-personal-income-tax-in-thailand-in-2022-23/
For assistance in tax and return filing in Thailand, contact us!
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