knowledge

THAILAND – As the end of the tax year approaches, many individuals and business owners across Thailand face the daunting task of navigating their personal income tax obligations. Understanding the complexities of the Thai Revenue Code is not just a legal requirement but a critical component of sound financial management. Siri Audit, a leading accounting and advisory firm based in Phuket, today releases a comprehensive guide to help taxpayers strategically plan their deductions and avoid common pitfalls.

The Growing Scale of Thai Personal Income Tax

Personal Income Tax is a direct tax levied by the state on the net income of individuals. Any person earning over THB 120,000 annually (THB 10,000 per month) is legally required to file a tax return.

Recent statistics from the Thai Revenue Department underscore the increasing importance of tax collection for the national budget:

• Fiscal Year 2022: THB 367.97 billion
• Fiscal Year 2023: THB 395.74 billion
• Fiscal Year 2024: THB 415.42 billion

While collections are rising, a significant portion of the workforce remains outside the formal tax system due to a lack of knowledge or a “fear of tax.” This not only impacts the national economy but also exposes individuals to severe financial risks, including retroactive tax assessments and heavy penalties.

The High Cost of Non-Compliance

The Thai Revenue Department has the authority to conduct retroactive audits. For standard cases, the statute of limitations is two years from the filing date. However, in cases of suspected tax evasion, this period can be extended to five years. For those who fail to file a return altogether, the authorities can legally investigate and claim unpaid taxes for up to ten years. The consequences—including fines and accumulated interest—can be financially devastating.

Filing taxes is a legal responsibility and a civic duty that contributes to national development. Proactive and accurate tax planning is the best defense against unforeseen financial liabilities.

Your Strategic Guide to 2024 Tax Deductions (for filing in 2025)

Effective tax planning involves leveraging all legally available deductions to reduce your taxable income. Siri Audit has compiled a summary of the primary deduction categories for the 2024 tax year:

1. Personal and Family Allowances:

• Personal Allowance: THB 60,000
• Spouse (with no income): THB 60,000
• Child: THB 30,000 per child. (For children born in or after 2018, the allowance is THB 60,000 for the second child onwards).
• Parental Care: THB 30,000 per parent (for parents aged 60+ with annual income under THB 30,000).
• Disabled/Incapacitated Person Care: THB 60,000 per person.
• Childbirth & Antenatal Care: Up to THB 60,000.

2. Insurance and Long-Term Savings:

• Life Insurance Premiums: Up to THB 100,000.
• Personal Health Insurance: Up to THB 25,000.
• Parents’ Health Insurance: Up to THB 15,000.
• Annuity Life Insurance: Up to THB 200,000.
• Social Security Fund: Up to THB 9,000.
• Super Savings Fund (SSF): Up to THB 200,000.
• Retirement Mutual Fund (RMF): Up to THB 500,000 (when combined with other retirement funds).
• Provident Fund (PVD), GPF, PFF: Up to THB 500,000 (combined with RMF).
• Thai ESG Fund: Up to THB 300,000.

3. Housing and Social Contributions:

• Home Loan Interest: Up to THB 100,000.

4. Donations:

• General Donations: Up to 10% of net income.
• Donations to Education/Public Health: 2x deduction (not exceeding 10% of net income).
• e-Donations: 2x deduction.
• Political Party Donations: Up to THB 10,000.

5. Government Stimulus Measures:

• Easy E-Receipt 2.0: Up to THB 50,000 for goods/services with an e-tax invoice (Jan 16 – Feb 28, 2025).
• Tourism in Secondary Cities: Up to THB 15,000 for travel (May 1 – Nov 30, 2024, with valid receipts).

Systematic tax planning is the foundation of robust personal finance. Understanding your liabilities and opportunities allows for more effective saving, investment, and long-term wealth creation.

Don’t Navigate Your Taxes Alone. Partner with an Expert.

Navigating these deductions can be complex, and regulations can change. Ensuring compliance while maximizing your benefits requires professional expertise. Siri Audit provides personalized tax advisory services to help you build a robust financial foundation that supports your strategic goals.

Frequently Asked Questions (FAQ)

1. Who is required to file personal income tax in Thailand? Anyone earning a total income of more than THB 120,000 per year from all sources has a legal duty to file a tax return annually.

2. What are the consequences of not filing my taxes or filing incorrectly? Failure to file can lead to significant penalties, including fines, surcharges, and potential retroactive tax assessments going back as far as 10 years. This can result in a substantial and unexpected financial burden.

3. Can I manage all these tax deductions on my own? While it is possible, the rules for each deduction can be intricate. A professional tax advisor can ensure you meet all criteria, maintain proper documentation, and legally maximize your savings, preventing costly errors.

4. Why should I choose a Phuket-based firm like Siri Audit? As a local firm with extensive international client experience, Siri Audit possesses a unique understanding of the financial landscape in Phuket and greater Thailand. We offer personalized, accessible services tailored to both Thai nationals and expatriates.

5. What is the first step to getting professional help with my taxes? The first step is to contact us. You can call or email our office to schedule a consultation. We will discuss your individual financial situation and outline a clear strategy to optimize your tax position for the year.

Take control of your financial future. Contact Siri Audit today for a personalized tax consultation and ensure you are fully prepared for the year-end, stress-free.

• Visit Us: Siri Audit Office Company Limited 63/769 Moo 4, Virat-Hongyok 5/11 Road, Vichit Sub district, Muang district, Phuket 83000 Thailand
• Call Us: 092-4241798 | 076-609399
• Mail Us: info@siriaudit.com