Previously, our Thai Tax Expert talked about the changes made by the Revenue Department in the Thai tax laws, particularly in the Personal Income Tax rule for married couples. In this post, we want to give more information about the allowed deductible expenses, allowances and filing options for married couples.
Deductible Expenses
The expenses are divided equally among the spouses as the joint income proportion.
Allowances
Each spouse can use these allowances to calculate their income tax as follows:
- Child allowance – each spouse can use Baht 15,000 (if the child is studying at the qualified level, each spouse can use Baht 17,000)
- Home Loan Interest Deduction – each spouse is entitled up to Baht 100,000 of interest deduction. However, if they entered into a loan agreement together, each of them is entitled to Baht 50,000 of interest deduction.
Filing Options
A married couple may have 5 options in submitting their tax returns:
- Each spouse files his/her tax returns separately;
- They file their returns jointly, combining the wife’s income with the husband’s income and submit the tax returns under the husband’s name;
- They file their returns jointly, combining the husband’s income with the wife’s income and submit the tax returns under the wife’s name;
- They file their returns jointly but the husband files his Section 40(1) income separately;
- They file their returns jointly but the wife files her Section 40(1) income separately.
Need help in filing your Thailand personal income tax returns? Contact MSNA now.