How much income is subject to tax?

For those who are just beginning to work, they may wonder how much salary it takes to file a personal income tax. Since each person has a different income, some have income only from salary, others have multiple ways to get income, many people wonder how much income they have to pay taxes. Today, ACU PAY will show you how much salary and income it takes to be subject to paying taxes.

The annual tax payable rate

Those with an annual income not exceeding 150,000 baht per year will be exempt from taxes.

Those with the annual income from 150,001 baht to 300,000 baht are subject to a 5% annual tax.

Those with the annual income from 300,001 baht to 500,000 baht are subject to a 10% annual tax.

Those with the annual income from 500,001 baht to 750,000 baht are subject to a 15% annual tax

Those with the annual income from 750,001 baht to 1,000,000 baht are subject to a 20% annual tax

Those with the annual income from 1,000,001 baht to 2,000,000 baht are subject to a 25% annual tax

Those with the annual income from 2,000,001 baht to 5,000,000 baht are subject to a 30% annual tax

Those with the annual income more than 5,000,001 baht are subject to a 35% annual tax

Tax Calculation

Salaries for the entire year must be calculated for “net income” by deducting exemptions, expenses, tax deductions, and donations. Those with a net income of 150,000 baht or more are subject to personal income tax.

Annual salary – [Exempted income (if any) + allowance + expenditure + donation] = net income

A Tax Payable = net income × tax rate

Tax Deduction

These items can be used for tax reductions: Basic reductions such as personal expenses, payment of child or spouse support, parental support, and childcare allowance for disabled children.

For investment and savings, general life insurance and endowment Insurance with protection of 10 years or more can be tax-deductible, including health insurance for yourself, parents, and spouse. Social Security, Retirement Mutual Funds, provident funds, national savings funds, pension funds, savings funds, and sustainability funds, including investments in corporate stocks that have been registered as social enterprises can be tax-deducted as well.

Donations can be tax-deductible, but not more than 10% of the money after deducted from expenses and other allowances such as general donations, actual donations, educational, sports, and social development. Donations can be done via e-donations and donations to political parties can also be deducted from taxes.

If taxes are not filed at a certain time, a maximum of criminal penalties may be imposed at 2,000 baht along with a fine of not more than two times the tax payable. Therefore, when the tax is filed, all tax collections should be prepared and documented. Taxpayers should plan their finances on time. Moreover, they can use tax privileges to provide savings and investment in other ways.

References from
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