Effective 1 January 2008 (i.e. from and including the 2008 calendar year) the first THB 100,000 of tax-free income has been increased to THB 150,000.  The personal income tax rates are now as follows:

Taxable Income

Tax Rate

0 –    150,000

0%

150,001 –    500,000

10%

500,001 – 1,000,000

20%

1,000,001 – 4,000,000

30%

4,000,001 –

37%

For the first three months of January, February and March 2008, you and your employees would probably have paid personal income tax based on the previous tax-free amount of THB 100,000, and whilst the law dictates that tax adjustments shall be made in the last month of every year (i.e. in the month of December), we believe that you could adjust for the overpaid tax in the personal income tax calculations for the month of April 2008 without causing any major problem.