In Thai personal income tax computation, there are several types of income that the taxpayer shall not include or may not choose to include such income to the assessable income.
- Income from sale of immovable property
A taxpayer shall not include income from sales of immovable property acquired by bequest or by way of gift to the assessable income when calculating personal income tax. However, if the sale is made for a commercial purpose, it is essential that such income must be included as the assessable income and be subject to personal income tax.
2. Interest income
The following forms of interest income may at the taxpayer’s selection, be excluded from the computation of PIT provided that a tax of 15% is withheld at source:
a. Interest on bonds or debentures issued by a government organization;
b. Interest on saving deposits in commercial banks if the aggregate amount of interest received is not more than 20,000 Baht during a taxable year;
c. Interest on loans paid by a finance company;
d. Interest received from any financial institution organized by a specific law of Thailand for the purpose of lending money to promote agriculture, commerce or industry.
A taxpayer, who resides in Thailand and receives dividends or shares of profits from a registered company or a mutual fund which tax has been withheld at source at the rate of 10%, may opt to exclude such dividend from the assessable income when calculating personal income tax. However, in doing so, taxpayer will be unable to claim any refund or credit.
Contact MSNA for your Thai accounting and tax questions.