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Taxation Summary - 2018
Taxation Summary - 2018
Taxation Summary - 2018

Personal Income Tax

Based on total earnings during calendar year

Individual personal expense allowance is 60,000 baht. Each employee is also granted an exemption for 50% of their salary income, but with a maximum exempted amount of 100,000 baht.

Additional exemptions include the full amount of any Social Fund tax deducted, plus the first 100,000 baht of any personal life insurance policy premiums paid by taxpayer.

Remaining amount is taxable income.

Tax rates on taxable income:

Minimum Maximum Tax Rate
The first 150,000 baht 0%
150,001 baht 300,000 baht 5%
300,001 baht 500,000 baht 10%
500,001 baht 750,000 baht 15%
750,001 baht 1,000,000 baht 20%
1,000,001 baht 2,000,000 baht 25%
2,000,001 baht 5,000,000 baht 30%
All income above 5,000,000 baht 35%

Note: There is a government proposal under consideration to increase the 0% tax bracket to cover the first 270,000 baht in annual income.

Corporate Income Tax

Companies with registered capitalization above 5,000,000 baht: Flat 20% tax rate

Companies with registered capitalization at or below 5,000,000 baht:

The first 300,000 baht in profit: 0% tax rate
The next 2,700,000 baht: 15% tax rate
All income above 3,000,000 baht: 20% tax rate

Value Added Tax - The rate currently charged is 7%

Must be charged and collected by any business that records 1,800,000 baht or more in income during a calendar year.

Must be charged and collected by any business that sponsors a foreign work permit.

VAT is not charged on: rent; transportation, medical and health services, educational services, cultural services, exports

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