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Personal Income Tax for Married Couples in Thailand
05/02/2024
Managing personal income tax can be a complex task, especially for married couples. Understanding the rules, deductions, and filing options can help optimize your tax liabilities and ensure compliance with Thai tax laws.
In this blog post, we will explore the key aspects of Thailand’s Personal Income Tax for married couples, including deductible expenses, allowances, and filing options.
Key points
- Personal income tax returns for 2023 are due by March 31, 2024.
- Progressive tax rates range from exempt to 35%, based on income levels.
- Taxpayer categories include residents (in Thailand for over 180 days) and non-residents (income from within Thailand).
- Married couples are eligible for certain deductions and expenses.
- Married couples can file their returns separately or jointly.
When should a Personal Income Tax Return be Filed?
In Thailand, the tax year for personal income tax runs from January 1st to December 31st. Tax filings and payments for this period must be submitted by March 31st of the following year using forms PND 90 or 91.
For income earned from renting out a property, self-employed professions, and other income, taxpayers must file a half-yearly tax return by September 30th. These taxes can be used as credits at the end of the tax year.
It is possible for individuals to file their taxes either on paper or online.
What are the Personal Income Tax Rates in Thailand?
Thailand employs a progressive tax system for personal income tax, where the tax rates increase as the taxable income rises. The current tax rates for the 2023 tax year are as follows:
| Taxable Income (baht) | Tax Rate |
| 0 – 150,000 | Exempt |
| 150,001 – 300,000 | 5% |
| 300,001 – 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,001 – 1,000,000 | 20% |
| 1,000,001 – 2,000,000 | 25% |
| 2,000,001 – 5,000,000 | 30% |
| Over 5,000,000 | 35% |
Can Married Couples Claim any Deductible Expenses?
Under Thai tax laws, deductible expenses are divided equally among spouses based on their joint income proportion. This ensures a fair allocation of expenses and prevents any disproportionate tax burden on one spouse. Married couples in Thailand may be eligible for the following deductions:
Child Allowance
Each spouse is entitled to a child allowance, which can be used to reduce taxable income. As of the current regulations, the child allowance is set at THB 15,000 per child.
Home Loan Interest Deduction
For married couples who have taken out a home loan, the interest paid on the mortgage can be deducted from taxable income. Each spouse is individually entitled to claim up to THB 100,000 of interest deduction. However, if the loan agreement is jointly held, each spouse can claim up to THB 50,000 for the deduction.
Do Married Couples Receive any Allowances?
Thailand’s Personal Income Tax system provides various allowances for married couples. The following allowances can be used to reduce taxable income and optimize tax liabilities:
Personal Allowances
Each spouse is entitled to a personal allowance of THB 60,000. This allowance is deducted from the individual’s taxable income, reducing the overall tax liability. It is important to note that the personal allowance is only applicable if the spouse does not file a separate tax return.
Parental Care Allowance
A parental care allowance of THB 30,000 per parent is available for married couples. This allowance can be claimed when supporting and caring for parents. To qualify for this deduction, the parents must be dependent on the taxpayer for financial support.
Disabled or Incapacitated Family Members
In cases where a family member is disabled or incapacitated, married couples can claim a deduction of THB 60,000 per person. This allowance is designed to support the care and maintenance of disabled or incapacitated family members.
What are the Filing Options for Married Couples?
Thai tax laws provide married couples with the following filing options.
Separate Tax Returns
Each spouse can file their tax returns separately. This option allows for individual reporting and provides flexibility in managing personal income tax obligations.
Joint Tax Return
Married couples can choose to file a joint tax return, combining both spouses’ incomes. This option simplifies the filing process and can be beneficial if one spouse has a lower income or if certain expenses cannot be clearly attributed to one spouse.
Filing Separately for Section 40(1) Income
Under this option, the couple files a joint tax return, but one spouse files their Section 40(1) income separately. This allows for separate reporting of employment income while maintaining the benefits of a joint tax return for other sources of income.
How can Belaws help?
For more information about Personal Income Tax in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
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Frequently asked questions
When is the deadline for filing Personal Income Tax returns in Thailand?
The deadline for personal income tax returns in Thailand is March 31, 2024, for the 2023 tax year.
How are personal income tax rates structured in Thailand?
Thailand employs a progressive tax system with rates ranging from 0 to 35%, based on different income levels.
Can married couples file their tax returns separately in Thailand?
Yes, married couples in Thailand have the option to file their tax returns separately or jointly.
What are some deductible expenses for married couples in Thailand?
Married couples in Thailand may claim deductions for Child Allowance and Home Loan Interest. The child allowance is set at THB 15,000 per child.
What allowances are available for married couples in Thailand?
Married couples in Thailand can benefit from Personal Allowances, Parental Care Allowance, and allowances for supporting disabled or incapacitated family members.
What is the filing option of "Filing Separately for Section 40(1) Income"?
This option allows a married couple to file a joint tax return while one spouse files their Section 40(1) income separately, providing flexibility in reporting.
How are deductible expenses divided among spouses in Thailand?
Deductible expenses are divided equally among spouses based on their joint income proportion to ensure fair allocation and prevent disproportionate tax burdens.
What is the purpose of the Parental Care Allowance in Thailand?
The Parental Care Allowance of THB 30,000 per parent is designed to support married couples financially caring for their dependent parents.
What is the significance of the Personal Allowance in Thailand’s tax system?
Each spouse is entitled to a Personal Allowance of THB 60,000, deducted from taxable income, reducing the overall tax liability, provided the spouse does not file a separate tax return.
How can married couples optimize their tax liabilities in Thailand?
Married couples can optimize tax liabilities by strategically utilizing allowances, deductions, and choosing the most suitable filing option based on their financial circumstances.
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