Duties and taxes calculator Thailand-Did you Know?

Duties are fees charged by the government on import/export and manufactured goods and a tax is a compulsory amount paid to the government. The central government is responsible for taxes. These taxes in duties are calculated in a different manner in Thailand. In this article you will be able to know each and everything about the Duties and taxes calculator at Thailand.

Duties and taxes calculator Thailand

What are the types of taxes in Thailand?

1 Personal income tax-this a tax charged on people that are residents in Thailand.

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2. corporate income tax-this is a tax given to the government by companies or juristic partnerships.

3. Value-added tax-this is a non-accumulative based consumption that is levied on the manufacture and provision of goods and the provision of services.

4. Stamp duty -This is a tax that is given to written documents namely cheques, marriage certificates, legal documents, transfer of shares, etc.

5. Custom Duties-a tax imposed on imports and exports.

6. Petroleum income tax-taxed to companies producing petroleum products.

How are duties and taxes in Thailand calculated?

In this topic, we are going to cover some of the above taxes and duties and get to know how they are calculated.

1.Personal Income Tax. 

This is a tax whereby is levied on persons who reside in Thailand one or more times in a tax year.

Taxable persons include:

1. Natural persons.

2. ordinary unregistered partnerships.

3. Deceased

4.non- juristic body of persons.

What are the types of personal income tax?

Assessable income

This is a type of tax that is given to residents and nonresidents from businesses that run in Thailand regardless of where the money is paid from. This tax is grouped into 7 categories that include:

  1. Salaries and wedges
  2. Employment
  3. Goodwill
  4. Stocks, shares, and digital tokens
  5. Professional jobs like law, engineering, medicine, etc.
  6. Selling of property, hire purchase breach.
  7. Contractual work
  8. Business income.
Capital Gains

Most capital gains are charged as ordinary taxes but some are exempted from the tax for example shares, the stock exchange of Thailand, gains on the sales of non-interest-bearing debentures, bills, and debt instruments that are issued by a corporate entity.

Capital losses are not categorized as capital gains and this can attract a fixed rate of 15% on the gains sold from bonds etc. 

Gift Tax.

This is derived from a living person giving his or her to parents, siblings, children, wife/husband, friends, and any other prescribed beneficiaries, etc.

Tax rates range from 5% which covers a net income of 0- 150,000 which is the lowest and rises by the amount of net income, to 35% which is the highest for persons earning over 5000000 worth of net income.

Taxpayers are also licensed against their annual tax liability for the tax withheld at a source.

Tax Implementation.

Personal income tax is levied on persons who:

  1. Are not married and earn a salary of 60000 Baht or more.
  2. Have no partner with a salary of 12000 Baht or more
  3. A married person with a salary of more than 220000 Baht

The couple can choose to file their returns jointly or separately whichever suits them the best.

There is a penalty of 100 % for taxpayers who inaccurately file their returns and a fine of 200% for persons who fail to file their returns at all. The penalties may be reduced to 50% only if the taxpayer submits written documents that the failure to file was not intentional.

2. Corporate income tax.

This is a tax that is applied to companies operating in and from Thailand. These companies are called resident companies

Taxable corporates include:

  1. Companies and juristic partnerships
  2. Associations, foundations, and joint ventures.
  3. Foreign government agencies.
  4. Companies assimilated by foreign law.
Tax Rates

The standards tax fee for the corporate income tax is 20% but the fee is reduced for small and medium enterprises (SME) to 15% for the corporates earning 300000-3000000 Baht net profit while those from 0-300000 Baht get a nil tax charge.

Airlines from other countries are subject to an income tax of 3% covering transport and also a 3% covering cargo services.

Custom Duties.

Custom duties are inflicted on imports and exports. Harmonized commodities descriptions and coding systems are used to determine imports.

Duties are levied according to the value of a commodity from 0% and 80%.

Some imported goods from other countries have a free trade agreement with Thailand (FTA) which include: Australia, Chile, India, Japan New Zealand, etc.

Custom duties are due upon arrival of a shipment carrying the imported goods where the goods may be stored for 45 days with no submission of import entry and 60days with submission of import entry before the goods are released at a fee.

Conclusion:

When shipping internationally you incur customs duty charges up to 7% while the average (MFN)Most Favored Nation custom duty for agricultural products is 29% and 7% for non-agricultural products.

Duties and taxes calculator Thailand-Did you Know?

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