2021 Thailand Personal Tax Allowance and Deduction – Update – RSM Payroll Services Thailand

By Monnapak Siritaworajan

There have been a number of recent changes and updates with respect to employee personal tax allowances so this is an opportune time to provide readers of RSM Focus with relevant information regarding the latest payroll outsourcing Bangkok tax news. An individual, resident or non-resident, who derives assessable income from employment in Thailand or from income sourced in Thailand, is liable to report their income and pay taxes at the progressive tax rate of 0% - 35% (if any) via filing their Thai annual tax return (PND 90/91). This is regardless of where the income is paid.

Thai annual personal income tax filing deadline for the calendar year 2021

Form

Paper Filing

Online filing

PND 90/91

31 March 2022

8 April 2022

Note: The filing extension may be allowed if there are any further notices from the tax authorities.

What are personal allowances and / or deductions?

The Thai Revenue Department allows an individual to claim personal allowances and deductions from net income after the deduction of standard expenses according to Thai tax laws. This can help individuals to minimize their tax liabilities by offsetting them against assessable income before calculating their tax liabilities.

As you may be aware the Thai Revenue Department always updates/announces additional personal allowances and deduction each year to support tax payers or also to make things easier and fairer when economic situations dictate a need during particular periods of turbulence or other.

As taxpayers, you should be aware of some of the personal allowances and deductions which may have been discontinued. Therefore, below is an updated personal allowances and deductions summary which are still applicable for the tax year 2021.  

Type of Allowance and Deduction

Amount

Personal allowance

60,000 Baht

Spouse (with no income)

60,000 Baht

Child (born before 2018 with no income or income not exceeding 30,000 Baht)

Note: Age under 25 and studying. There is no limit of no. of natural children but there is a limit of three when claiming for adopted children.

30,000 Baht per child

Second child born from 2018 onwards

(Same conditions as above)

60,000 Baht per child

Expenses for antenatal care and child delivery

60,000 Baht per each pregnancy

Parents allowance

(Applicable only for parents with Thai nationality and income not exceeding 30,000 Baht per annum)

30,000 Baht per parent

Disabled or incapacitated family members care allowance

60,000 Baht

Social Security Fund Contribution

Actual amount contributed during the year, max. 5,100 Baht per annum

Parents health insurance

Amount actually paid, but not exceeding 15,000 Baht

Health Insurance Premiums *

Amount actually paid, but not exceeding 25,000 Baht

Life Insurance Premiums *

Amount actually paid, but not exceeding 100,000 Baht

Pension Life Insurance Premiums **

Up to 200,000 Baht, but not exceeding 15% of total assessable income

Provident Fund Contribution **

Up to 500,000 Baht, but not exceeding 15% of total wages

Retirement Mutual Fund (RMF) **

Up to 500,000 Baht, but not exceeding 30% of total assessable income

Super Saving Fund Contribution **

Up to 200,000 Baht, but not exceeding 30% of total assessable income

Civil Servant Pension Fund **

Up to 13,200 Baht

Mortgage Interest Expenses

Amount actually paid, but not exceeding 100,000 Baht

Charitable contributions

Amount actually donated, but not exceeding 10% of net assessable income after standard deductions and allowances

 

There is a double deduction allowed for education, sport and hospital.

Donation to political parties

Up to 10,000 Baht

Note: * The total amount of premiums paid cannot exceed 100,000 Baht

           ** Total amount must not exceed 500,000 Baht

Please note that supporting documents may be required by the tax officer to provide proof for the amounts claimed for the above personal allowances and deductions.  A sample of the required documents are listed below: -

  • A copy of marriage certificate or family certificate (for Japanese tax payers)
  • A copy of child birth certificate
  • The official medical receipts for antenatal care and child delivery claims
  • Copies of parents Thai ID cards and LorYor 03 form
  • Copies of insurance premiums certificates
  • Copy of provident fund certificate
  • Copies of investment (i.e. RMF, super saving fund) certificates
  • A copy of a mortgage interest certificate
  • Copies of donation receipts

This article was compiled and put together by Khun Monnapak Siritaworajan - Payroll Manager of RSM Payroll Outsourcing Thailand. For more information, please visit Revenue Department website at https://www.rd.go.th/557.html or feel free to contact us at [email protected]