Allowed charitable donations for Personal Income Tax computation
A taxpayer who made charitable donations other than to support educational projects may be entitled to a deduction. Such qualified charitable donation must be made to one of the following institutions:
- Public hospitals
- Thai Red Cross Society
- Public or private educational institutions
- Government agencies (such as for the donation to the nation’s natural disaster victims)
- Charitable institutions, government employee welfare or funds, etc. as prescribed by the Ministry of Finance
The qualified amount is:
- The actual amount you donated;
- The maximum amount is 10% of the amount after deducting allowances and contribution to educational projects.
Need help in filing your Personal Income Tax in Thailand? Contact MSNA for consultation.
Changes made to the Personal Income Tax Filing for year 2012
There are a few changes being made to the tax laws in 2012, notably the Personal Income Tax rule for married couples.
Previously, Sections 57 Ter and 57 Quinque of the Revenue Code stipulated that if your marriage existed throughout the tax year, you and your spouse must file a joint tax return with the opinion that a wife may select to file her employment income, Section 40(1) income, separately.
However, on 4 July 2012, the Constitutional Court ruled that Sections 57 Ter and 57 Quinque of the Revenue Code are in breach of the constitution. Consequently, those two sections are no longer applicable. Hence, the government passed an Emergency Act to change the rules for married couples as follows:
- You and your spouse can file a tax return jointly as before, for all types of income or
- You and your spouse can file a tax return jointly, however either you or your spouse may select to file income from employment (Section 40 (1)) separately from the joint income by using PND.91 tax form or
- You and your spouse can file separate tax returns for all types of income received and pay personal income tax separately. In the case where certain income cannot be clearly identified as yours or your spouse’s, the following rules shall apply:
- Sections 40(2) – 40(7) income must be proportioned equally between you and your spouse.
- Section 40(8) income can be proportioned equally or as agreed between you and your spouse. When you and your spouse agree on a proportion, you must notify the tax officer and pay income tax on that amount accordingly.
Note: If you and your spouse choose to file tax return jointly as in a) or b), you and your spouse are responsible for any tax payable incurred together. On the other hand, if you and your spouse choose to file tax return separately, each of you is responsible for any tax incurred separately as well.
Contact MSNA for preparation and filing of personal income tax returns in Thailand.
Thailand Board of Investment extended 2 more years permission for 101 promoted companies
The Board of Investment of Thailand has approved a 2 more year permission for 101 promoted companies to employ foreign unskilled labor.
Under the relief measure on foreign unskilled labor employment, the BOI permits 101 promoted companies to continue hiring foreign unskilled laborers until December 31, 2014. However, these 101 companies are required to propose a concrete plan to gradually reduce the number of foreign unskilled workers to BOI within February 28, 2013. During the extended period, they must implement a plan to reduce the number of foreign unskilled workers by 25% every 6 months until no foreign unskilled labor is hired by January 1, 2015. Any of these 101 companies that fail to implement the plan as proposed will have their corporate tax exemption terminated.
Inquire now with MSNA about Thailand BOI promotion and other options in doing business in Thailand.
Social security benefits in case of illness
Part of Thailand social security benefits is that if an insured person has sustained injury or has been ill, he shall be entitled to be admitted for medical treatment at the hospital of his choice according to the Certified Entitlements Card or at an affiliated hospital without bearing any cost and shall be entitled to compensation benefit at half of the receiving wage according to the actual number of days of leave not exceeding 90 days or 180 days in a year for loss of income in the course of medical treatment at the recommendations of the attending physician.
In case of chronic sickness, the insured person shall be entitled to compensation for loss of income for not exceeding 365 days.
To receive medical treatment and compensation, the following requirements must be presented:
- Certified Entitlement Card and Citizenship Identity Card or passport is required when applying for medical treatment from the hospital;
- When applying for compensation payment to the loss of income, the insured person is required to present the Application for Compensation Benefit Form (Sor Por Sor. 2-01 Form); the medical certificate, a certificate from the employer and a copy of the bank account, particularly the copy of the first page on which the name of account and account number are shown (in the case of receiving compensation payment through the Bank).
Contact MSNA for your Thailand Social Security questions and payroll needs.
Are all foreigners required to obtain a Tax Clearance Certificate?
According to Section 4 quarter of the Thai Revenue Code, NOT all foreigners are required to obtain a Tax Clearance Certificate in Thailand. Those who are not required to apply for a Tax Clearance Certificate are as follows:
1. A foreigner traveling across Thailand, or entering or residing in Thailand for a period or period aggregating not more than 90 days in a tax year without earning assessable income;
2. A foreigner as prescribed by the Director-General with the Minister’s approval;
3. A foreigner departing Thailand except for the 3 cases described as required to obtain Tax Clearance Certificate
Contact MSNA for your accounting, tax and other business needs.