2023 Tax Return Filing in Thailand

The season for filing personal income taxes in Thailand has now arrived.

Thai taxpayers have the right to report their income to the Revenue Department from 1 January to 10 April 2023. It is useful to know how much money you made in Thailand between January 1 and December 31, 2022.

Are you a tax resident in Thailand?

A person who spends 180 days or more in Thailand during a calendar year is considered a Thai tax resident according to Thai tax law. Keep in mind that each day will count as one no matter what time you enter or leave Thailand. For tax purposes, a tax year that you are a resident in is treated as a full year. Keep a copy of your passport on hand to confirm this.

Submitting your tax return

Personal income tax returns must be filed electronically by 10 April, but hard copies must be received by the Revenue Department by 31 March. The Revenue Department’s website, https://efiling.rd.go.th/rd-cms/, is where individuals can file their personal income tax returns.

In order to file a hard copy personal income tax return using form PND 90/91, taxpayers must do so at any Revenue Department Area Office along with any additional tax that is owed in cash, by cashier’s check, or by QR code, and that must be paid within seven days of the date the tax return was issued. The deadline is March 31; after that, late filers will be charged an additional 1.5% monthly surcharge (or fraction thereof) on top of the unpaid tax. Those who apply will have access to interest-free installment payment plans for up to three months. The penalty for submitting documents late ranges from THB 200 to 2,000.

When submitting your Personal Income Tax Returns (PND 90, 91), please make sure that the correct taxable income has been reported. This includes income from all sources in Thailand (especially those connected to your Thai employment), regardless of where it came from or whether you are a Thai resident, as well as income from abroad brought into Thailand in the same tax year.

The tax rates range from 0% to 35% for both residents and non-residents. The distinction between residents and non-residents will be discussed in more detail below.

Income from abroad

The “Residence Rule” states that if you are a Thai tax resident and bring such foreign income into Thailand in the same year it is earned, Thailand will tax you on it. It might also be related to your employment abroad.

If you plan to bring in foreign income like capital gains, rental income, or interest income into Thailand before you begin working in the Kingdom, please think it through carefully before you do. Non-residents, however, are permitted to bring in such foreign income without being subject to Thai taxation.

Deductions for dependents

An individual who has no income during a tax year is considered a dependent. Children and spouses who reside abroad can also be considered dependents.

If you are a Thai resident, you can claim a family allowance deduction for your dependent spouse and up to three dependent children.

To qualify for this allowance, you must give the Revenue Department a copy of your entire passport—from front to back, including the blank pages—that you used for travel during the tax year, as well as a marriage certificate and/or copies of any children’s birth certificates.

If you can demonstrate that your children are students—for example, by providing a copy of a tuition fee receipt—you may be able to claim them as dependents for tax purposes. For instance, it may be deducted from your taxes if your child qualifies as an incompetent person or a quasi-incompetent person and is 25 years of age or older during the tax year.

If your dependents are Thai citizens, you can still claim these deductions even if you are not a Thai resident by giving the Revenue Department copies of their entire passports, front to back, including the blank pages.

Tax reduction

Let’s look at some legal ways that foreign workers can lower their tax obligations, starting with the different deductions that will be available in 2022.

1. Up to THB 60,000 can be claimed by the taxpayer.
2. The taxpayer’s spouse is eligible for THB 60,000 Baht under the proviso that the union must be legally recognized and that the spouse has to be unemployed.
3. Up to THB 30,000 can be claimed by the taxpayer, which is limited to 3 children.
4. Due to the social security rate reduction in 2022, the social security fee shall be applied as a tax deduction based on the actual paid amount of no more than THB 6,300.
5. According to the actual paid amount of not more than THB 100,000, life insurance premiums and savings insurance premiums may qualify for a tax deduction under the following circumstances:
   • Must have 10 years or more of insurance coverage with a Thai life insurance company, and the insurance cannot be surrendered during the first 10 years. If that is the case, it will be regarded as a breach and not eligible for a tax deduction. The maximum tax deduction for the spouse’s insurance premiums is THB 10,000 if there is no income from the spouse.
6. Premiums for accident and health insurance: Premiums which cover the health part can be used for a tax deduction according to the actual paid amount of not more than THB 25,000. Additionally, the total sum cannot be greater than THB 100,000 when combined with savings insurance and life insurance.
7. Annuity life insurance premiums can be used to claim a tax deduction of 15% of your income, up to a maximum of THB 200,000. The requirements are that the insurance must be with a Thai Life Insurance Company, that it must cover a period of at least 10 years, and that the insurance company must pay benefits to the insured from the time they are 55 years old until they are 85 years old or older.
8. Retirement Mutual Fund (RMF) contributions can be deducted from taxes at a rate of 30% of taxable income, up to a maximum of THB 500,000, and for a period of five years.
9. Super Saving Funds (SSF) (for long-term saving) are eligible for a tax deduction of 30% of taxable income based on the actual amount paid, up to THB 200,000, with benefits for a five-year period.
10. Investment fund for social enterprises are eligible for tax deductions up to THB 100,000 and subject to the following requirements:
    • These businesses must be registered as nonprofit social enterprises, and the taxpayer must hold shares until the social enterprise is dissolved.

Tax deduction from donations

1. Donations to charitable, educational, and religious organizations that does not exceed 10% of annual net income
2. Donations to state hospitals, schools, sports teams, and other charitable organizations are tax deductible up to two times the amount of the donation, but not more than 10% of gross income after other deductions.
3. Donations to political parties are tax deductible up to a maximum of THB 10,000.

Tax deduction from immovable property

A tax deduction of up to THB 100,000 can be claimed for loan interest on residential property purchases.

Other tax deductions such as the government’s economic stimulus program

The Shop Dee Mee Kuen Project 2565 allows a maximum deduction of THB 30,000 for purchases of goods and services in the country between January 1 and February 15, 2565, based on the actual paid amount. Goods and services subject to Value Added Tax (VAT) such as OTOP products and books (including e-books), are examples of tax-deductible goods and services.

The following are deductible for those with a Thai dependent spouse:

1. Life insurance premiums of up to THB 10,000 per year for the spouse.
2. An amount up to THB 30,000 for each dependent parent of the spouse.
3. Up to THB 15,000 in annual health insurance premiums for you and your spouse’s parents if they are covered by a Thai plan.

Remark: If you receive income from a foreign source and bring it into Thailand, you must show a receipt proving that you already paid tax on it so that Thailand can credit your account for it.

If you have any questions related to tax in Thailand, please do not hesitate to contact us at info@franklegaltax.com