3 worth-to-know techniques before filing taxation

Here comes the tax filing fest that every Thai citizen has to face with Taxation Filing at the early of 2024. Is there anyone who has filed taxes before but is still confused? For those who do not understand about taxes or would like to plan about taxes, ACU PAY has gathered some techniques for you to know more before filing taxes.

1. Plan before file taxes

Normally, every Thais whose income reaches a certain threshold are obliged to file taxes. It can be easily divided into 2 groups; the first one is the singles who earn more than 120,000 baht per year or have other ways of income of more than 60,000 baht per year, another group is those who are married and earn more than 200,000 baht per year or have other ways of income more than 120,000 baht per year.

It can be calculated from the amount of assessable income, salary, or income for the whole year, whether it is a fixed salary (for the whole year), bonus, overtime or OT, or other special money.

Calculate net income

Then, find the net income to use in tax calculation. The net income can be calculated by deducting the annual income with expenses and allowances.

“Annual income – Expenses – Allowances = Net Income”

Before filing taxes, we can calculate the net income used in tax filing with tax calculation programs at any website that provides this service for free.

Calculate progressive Tax

Then, compare the net income with the personal income progressive tax rate.

“Tax = [(Net Income – The highest net income of that level) x Tax Rate] + The highest accumulated tax of that level”

The table compares net income with tax rates

Net Income (Baht)	Tax Rate	The highest accumulated tax (Baht)
0 – 150,000	Tax exemption	0 Baht
150,000 – 300,000	5%	7,500 Baht
300,001 – 500,000	10%	27,500 Baht
500,001 – 750,000	15%	65,000 Baht
750,001 – 1,000,000	20%	115,000 Baht
1,000,001 – 2,000,000	25%	365,000 Baht
2,000,001 – 5,000,000	30%	1,265,000 Baht
more than 5,000,000	35%	Calculate the true value

2. File tax allowance as much as possible

Tax allowances that we all have and should pay attention to are such as personal and family expenses, including;

Personal allowance of 60,000 baht
Spouse allowance (register a marriage – have no income) of 60,000 bat
Child allowances of 60,000 baht each
Prenatal Care allowance and childbirth allowance are calculated according to the actual payment but not more than 60,000 baht
Parental care allowance for parents aged 60 or older of 30,000 baht each. Parents must earn not more than 30,000 baht per year and can be used for tax breaks up to 30,000 Baht each for their spouse’s parents.
Allowance for supporting the disabled or persons with disabilities of 60,000 baht each. The income of the disabled must not exceed 30,000 baht per year and have a Disabled Person ID Card.

Additional tax breaks can also be used to reduce taxes, such as health insurance, life insurance, pension insurance, investment in RMFs, SSFs, TESGs, donations, and government economic stimulus programs. In terms of allowances, it is recommended to gradually accumulate the purchases. It is not recommended to pay a large amount at a time because this may affect your liquidity. Each allowance should be carefully studied before deciding to pay. Be careful of the payments that exceed the maximum right of that allowance.

The details are as follows;

Social security of up to 9,000 baht
Health insurance premiums for your parents and your spouse’s parents can be used for tax allowance as the same amount of actual payment but not more than 15,000 baht.
General life insurance premiums or Endowment Insurance (protect from 10 years upward) can be used for tax allowance as the same amount of actual payment but not more than 100,000 baht
Allowances on insurance premiums for yourself can be used for tax allowance as the same amount of actual payment but not more than 25,000 baht, and when combined with general life insurance, it must not exceed 100,000 baht.
Pension insurance premiums can be used for tax allowances by 15% of income but not more than 200,000 baht and may be up to 300,000 baht if general life insurance premiums have not been applied.
Provident Fund / Private teacher aid fund contribution can be used for a tax allowance of 15% of income but not more than 500,000 baht and for Government Pension Fund (GPF) of 30% of income but not more than 500,000 baht
The Super Savings fund (SSF) can be used for a tax allowance of up to 30% of income but not more than 200,000 baht.
The Retirement Mutual Fund (RMF) can be used for a tax allowance of up to 30% of income but not more than 500,000 baht.
The National Savings Fund (NSF) can be used for tax allowance as the same amount of actual payment of up to 30,000 baht.
House interest can be used for tax allowance as the same amount of actual payment but not more than 100,000 baht.
Social enterprise of 100,000 baht
Shop Dee Mee Kuen used in goods purchasing during 1 January to 15 February 2023
Donation to political party of 10,000 baht
Donations for education, sports support, social development, public health foundations, and public hospitals can be used for tax allowance as the same amount of actual payment but not more than 10% of the income after expenses and allowances deduction.
Other donations to foundations and charitable organizations can be used for tax allowance as the same amount of actual payment but not more than 10% of the money after expenses and allowances deduction.

3. Easier filing taxes via online

As we know, right now we can file taxes more easily through online channels at the Revenue Department’s www.rd.go.th. In addition to being convenient and fast, the online system also links some tax allowances information such as interest on home loans, contributions, life insurance, and so on to the Revenue Department without having to spend any time calculating or filling out. You can file via this online channel until April 8, 2024, for the tax year 2023.

Those who have a lot of income and want to be sure can file taxes at the District Revenue Department. There will be staff to provide advice. However, this channel must only be done by March 31, 2024.

In case of paying extra taxes

This can be done through the Revenue Department’s website via either a bank account transfer or a QR code scan. Those who have to pay extra taxes in large amounts may choose to pay with a credit card, but will not earn points and may incur a 1% fee in some banks.

In case of tax refund

Customers can choose to receive a refund in cheque form or through ‘Prompt Pay’ which binds the bank account to the mobile phone number or ID number. If approved, the system automatically transfers the money back to the account.

If you’re done filing taxes, keep the paperwork well.

After filing taxes, it is recommended that the documents or digital files should be kept separately by year without mixing them because the Revenue Department can request documents back up to 5 years.

เพียงแค่เรารู้จักวางแผนการจ่ายภาษีให้ดี การยื่นเสียภาษีในแต่ละปีก็ไม่ใช่เรื่องยุ่งยากอีกต่อไป ยิ่งกว่านั้นเรายังสามารถใช้สิทธิลดหย่อนภาษีให้คุ้มค่ามากที่สุดอีกด้วย

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