Section 38 Income tax is an assessment tax. An assessment official shall make assessment on tax under this Chapter.
Section 39 In this Chapter, unless the context otherwise requires:
Assessable income means income that is taxable under this Chapter. Such income also includes a property or any other benefit received which may be computed into a monetary value, any amount of tax paid by the payer of income or by any other person on behalf of a taxpayer and tax credit under Section 47 Bis.
Associated companies or juristic partnerships means two or more companies or juristic partnerships having relationship in any of the following manners:
(1) More than one half of the same shareholders or partners in a juristic person constitutes more than a half of the number of the shareholders or partners in another juristic person;
(2) The shareholders or partners holding more than fifty percent of the value of the total capital of a juristic person are also the shareholders or partners holding more than fifty percent of the value of the total capital of another juristic person;
(3) A juristic person is a shareholder or partner holding more than fifty percent of the value of the total capital of another juristic person;
(4) Persons constituting more than one half of the number of the directors or partners controls the management of a juristic person are also directors or partners who controls the management of another juristic person.
Tax year means calendar year.
Listed company means a company listed in the Securities Exchange of Thailand.
Investment management company means a security company licensed to carry on business of investment management under the law governing the control of trading activities that affect public safety and welfare.
Mutual fund means a body of persons who participate in a fund that is established and operated by an investment management company for a project under the law governing the control of trading activities that affect public safety and welfare.
Finance company means a finance company or a credit foncier company established under the law governing the control of trading activities that affect public safety and welfare.
A non-juristic body of persons means two or more persons agree to unite for a common undertaking, but not as an ordinary partnership.1
1R.C.A.A. (No. 39) B.E. 2557 as of 26 December B.E. 2557Company or juristic partnership means a company or juristic partnership established under a Thai or foreign law, and shall include:
(1) A business operating in a commercial or profitable manner by a foreign government, organization of a foreign government or any other juristic person established under a foreign law;
(2) A joint venture, operating in a commercial or profitable manner, between a company or juristic partnership on one hand and companies, juristic partnerships, individuals, non-juristic body of persons, ordinary partnerships on the other hand;2
2R.D.No.10 Section 5 Bis(3) A foundation or association carrying on revenue generating business, but does not include the foundation or association as prescribed by the Minister in accordance with Section 47 (7) (b).3
3R.D.No.10 Section 5 Novem(4) Any juristic person as prescribed by the Director-General with an approval of the Minister and published in the Government Gazette.4
4N.DG.IT.No.271Sale includes sale with right of redemption, exchange, gift, transfer of ownership or possessory right in an immovable property by any means, and whether with or without any consideration, but does not include:
(1) a sale, exchange, gift or transfer of ownership or possessory right in an immovable property to a government authority or a state enterprise that is not a company or juristic partnership under the rules, conditions and at the price or value prescribed by a royal decree.5
5R.D.No.121 R.CT.No.4/2526(2) A transfer of ownership or possessory right in an immovable property to an heir by way of inheritance.
Sale price includes the price determined by an assessment official under Section 49 Bis.
Possessory right means possessory right in the holding of an immovable property.
Section 40 Assessable income is income of the following categories including any amount of tax paid by the payer of income or by any other person on behalf of a taxpayer.
(1) Income derived from employment, whether in the form of salary, wage, per diem, bonus, bounty, gratuity, pension, house rent allowance, monetary value of rent-free residence provided by an employer, payment of debt liability of an employee made by an employer, or any money, property or benefit derived from employment.4
4R.CT.No.29/2538(2) Income derived from a post or from performance of work, whether in the form of fee, commission, discount, subsidy, meeting allowance, gratuity, bonus, house rent allowance, monetary value of rent-free residence provided by a payer of income, payment of debt liability of a taxpayer made by a payer of income, or any money, property or benefit derived from a post or from performance of work, whether such post or performance of work is permanent or temporary.
(3) Fee of goodwill, copyright or any other rights, annuity or annual payment of income derived from a will, any other juristic act, or court decision.
(4) Income that is:
(a) Interest on a bond, deposit, debenture, bill, loan whether with or without security, the part of interest on loan after deduction of withholding tax under the law governing petroleum income tax, or the difference between the redemption value and the selling price of a bill or a debt instrument issued by a company or juristic partnership or by any other juristic person and sold for the first time at a price below its redemption value. Such income also includes income assimilated to interest, benefit or other consideration derived from the provision of a loan or from a debt-claim of every kind whether with or without security. 5
5M.R.No.126 Clause 2 (30) R.CT.No.30/2538(b) Dividend, share of profits or any other gain derived from a company or juristic partnership, a mutual fund or a financial institution established under a specific law in Thailand for the purpose of providing a loan in order to promote agriculture, commerce or industry; the part of dividend or share of profits after deduction of withholding tax under the law governing petroleum income tax.
For the purpose of income calculation under paragraph 1, if a lawful child who is a minor derives income and the marital status of the parents exists throughout the tax year, the income of the child shall be treated as income of the father. However, if the marital status of the parents does not exist throughout tax year, the income of the child shall be treated as income of the parent who exercises parental power, or of the father if both parents jointly exercise parental power.
The provisions of paragraph 2 shall apply mutatis mutandis to an adopted child who is a minor deriving income.
(c) bonus paid to a shareholder or partner of a company or juristic partnership;
(d) a decrease of the capital holdings in a company or juristic partnership which does not exceed the total amount of profits and reserves;
(e) an increase of capital holdings in a company or juristic partnership that is determined from the total amount of profits or reserves;
(f) a benefit derived from the amalgamation, acquisition or dissolution of a company or juristic partnership and having the monetary value which exceeds the capital;
(g) gains derived from transfer of partnership holdings or shares, debentures, bonds, or bills or debt instruments issued by a company or juristic partnership or by any other juristic person.6
6M.R.No.126 Clause 2 (30)(5) Money or any other gain derived from:
(a) rent of property,
(b) breach of a hire-purchase contract,
(c) breach of an installment sale contract, where the seller regains the property sold without paying back the money or gains already received.
In the case of (a), if an assessment official has reason to believe that the taxpayer underreports the amount of income, he shall have the power to assess the income according to the reasonable rent of property under normal circumstances, and the amount so assessed shall be deemed assessable income of the taxpayer. In such case, the taxpayer may appeal against the assessment and shall apply the provisions on appeals under Part 2, Chapter 2, Title 2 mutatis mutandis.
In the case of (b) and (c), all the money and gains received from the date of entering into contract to the date of breaching the contract shall be deemed assessable income of the year of which the contract is breached.
(6) Income from liberal professions, namely, laws, arts of healing, engineering, architecture, accounting, fine arts or other liberal professions as prescribed by a Royal Decree;
(7) Income derived from a contract of work where the contractor has to provide essential materials besides tools;
(8) Income from business, commerce, agriculture, industry, transport or any other activity not specified in (1) - (7).
The amount of tax under paragraph 1, which is paid for by the payer of income or by any other person on behalf of taxpayer on any category of income or in whichever tax year, shall be treated as income of the same category and of the same tax year as the income where payment of tax is made.
Section 40 Bis Any person who exports goods abroad, to or under the instruction of the head office, branch, principal, agent, employer or employee shall be deemed as also having made sale in Thailand, and the market price of good as on the date of export shall be deemed the price of good sold.
The provisions of the previous paragraph shall not apply to cases where the goods are-
(1) goods sent exclusively as samples or for the purpose of research,
(2) goods in transit,
(3) goods imported into Thailand and returned to the sender within one year from the date of import,
(4) goods exported out of Thailand and returned to the sender in Thailand within one year from the date of export.
Section 41 A taxpayer who in the previous tax year derived assessable income under Section 40 from an employment, or from business carried on in Thailand, or from business of an employer residing in Thailand, or from a property situated in Thailand shall pay tax in accordance with the provisions of this Part, whether such income is paid within or outside Thailand.
A resident of Thailand who in the previous tax year derived assessable income under Section 40 from an employment or from business carried on abroad or from a property situated abroad shall, upon bringing such assessable income into Thailand, pay tax in accordance with the provisions of this Part.
Any person staying in Thailand for a period or periods aggregating 180 days or more in any tax year shall be deemed a resident of Thailand.
Section 41 Bis In the case where the ownership or possessory right in an immovable property is transferred without any consideration, the transferor shall be treated as a taxpayer and pay tax in accordance with the provisions of this Part.7
7M.R.No.126 Clause 2 (18) (26) (28) (29)Section 42 The assessable income of the following categories shall be exempt for the purpose of income tax calculation:
(1) Per diem or transport expenses that an employee or a person performing work spends honestly, necessarily, exclusively and wholly in carrying out his duties.
(2) Transport expenses and traveling per diem at the rates prescribed by the Government in the Royal Decree governing the rates of transport expenses and traveling per diem.
(3) The part of traveling expenses paid by the employer to the employee which the employee spent wholly and necessarily in traveling from a different place to take up employment for the first time or for returning to his place of origin after the termination of the employment. However, this exemption shall not cover traveling expenses received by an employee who returns to his place of origin and then takes up employment with the same employer within three hundred fifty five days from the last working day of the previous employment.
(4) Where a contract of employment which was bona fide entered into before the entry into force of the Royal Act on Income Tax B.E. 2475 requires that the employer shall pay to the employee upon the termination of employment a single payment of gratuity, fee, commission or bonus, such payment shall be excluded for the purpose of income tax calculation, notwithstanding the whole amount that is paid after the entry into force of the provisions of this Part.
(5) Special post allowance, house rent allowance and rent free residence granted to an official of a Thai embassy or consulate abroad.
(6) Income from a sale or discount received from purchase stamp duties or government postage stamps.
(7) Board or committee meeting allowance and teaching and examination fees paid by the government or public educational institutions.
(8) The following interest:
(a) Interest from Government savings lotteries, or interest on demand deposit with the Government Savings Bank;
(b) Interest on savings deposit with a cooperative;
(c) Interest on savings deposit with a bank in Thailand which is repayable on demand; only in the case where the total amount of interest received by any taxpayer does not exceed one thousand baht throughout tax year, in accordance with the rules, procedures and conditions as prescribed by the Director- General.8910
8R.D.No.301 B.E. 2539 9N.DG.IT.No.55 10N.DG.IT.No.64(9) Sale of a movable property acquired from inheritance or acquired not in a commercial or profitable manner, but not including ship or vessel with freight of six tons or over, steam boat or motor boat with freight of five tons and over, or floating house.
(10) Income derived from an inheritance.11
11R.C.A.A. (No. 40) B.E. 2558(11) Award for the purpose of education or technical research, government lottery and government savings prize, prize given by government authority in contest or competition to a person other than a professional contestant or competitor, or reward paid by government authority for the purpose of prevention of wrongdoing.
(12) Special pension, special gratuity, inherited pension or inherited gratuity.
(13) Compensation against wrongful acts, amount derived from insurance or from funeral assistance scheme.
(14) (Repealed by R.C.A.A. (No.39) B.E. 2557)
(15) Income of a farmer from sale of rice cultivated by the farmer and/or his family.
(16) Income derived from an undivided estate liable to tax under Section 57 Bis.
(17) Income prescribed for exemption by Ministerial Regulations.12
12M.R.No.126 No.201 B.E. 2539(18) Red Cross lottery prize, income from a sale or discount received from purchase of Red Cross lotteries.
(19) Interest received under Section 4 Decem.13
13M.R.No.161 B.E. 2526(20) (Repealed by R.C.A.A. (No.26) B.E. 2525 S.5)
(21) (Repealed by R.C.A.A. (No.29) B.E. 2534 S.6)
(22) (Repealed by E.A.R.C. (No.14) B.E. 2529 S.8)
(23) Income from sale of investment units in a mutual fund.
(24) Income of a mutual fund.
(25) Compensatory benefit received by the taxpayer from the social security fund under the law governing social security.
(26) Income derived from the transfer of ownership or possessory right in an immovable property without any consideration to a legitimate child, not including an adopted child, but only for the portion not exceeding twenty million baht per a legitimate child throughout the tax year. (R.C.A.A. (No. 43) B.E. 2559 which has come into force as from 1 February B.E. 2559)
(27) Income derived from maintenance and support or gifts from ascendants, descendants or spouse, but only for the portion not exceeding twenty million Baht throughout the tax year.
(28) Income derived from maintenances and support under moral purposes or gifts received in a ceremony or on occasions in accordance with custom and tradition from persons who are not ascendants, descendants or spouse, but only for the portion not exceeding ten million baht throughout the tax year.
(29) Income derived from gifts whereby a donor has expressed his or her intention or appeared to have an intention of using the gifts for religious, educational or public benefit activities in accordance with the rules and conditions as prescribed by a Ministerial Regulation.14
14R.C.A.A. (No. 40) B.E. 2558Section 42 Bis For the assessable income under Section 40 (1) and (2), a standard deduction of 40 per cent shall be allowed as expense. However, the amount deducted shall not exceed 60,000 Baht in total.
In a case where both husband and wife have income under paragraph 1 and their marital status exists throughout tax year, each shall be entitled to deduct expenses in the amount specified in paragraph 1.
Section 42 Ter For the assessable income under Section 40(3) with respect to only fee for copyrights, a standard deduction of 40 per cent shall be allowed as expense. However, the amount deducted shall not exceed 60,000 Baht in total.
In a case where both husband and wife have income under paragraph 1 and their marital status exists throughout tax year, each shall be entitled to deduct expenses in the amount specified in paragraph 1.
Section 43 For the assessable income under Section 40(5), deduction of expenses shall be allowed in accordance with a Royal Decree. 11
11R.D.No.11 Section 5Section 44 For the assessable income under Section 40(6), deduction of expenses shall be allowed in accordance with a Royal Decree. 12
12R.D.No.11 Section 6Section 45 For the assessable income under Section 40(7), deduction of expenses shall be allowed in accordance with a Royal Decree. 13
13R.D.No.11 Section 7Section 46 For the assessable income under Section 40(8), deduction of expenses shall be allowed in accordance with a Royal Decree. 14
14R.D.No.11 Sections 8, 8 BisSection 47 For the assessable income under Section 40, after deduction of expenses under Section 42 bis - 46, the following allowances may be further deducted in order to relieve tax burden:
(1) Allowances for:
(a) the taxpayer, 30,000 Baht;
(b) the taxpayers spouse, 30,000 Baht;
(c) legitimate or adopted children of the taxpayer, including legitimate children of the taxpayers spouse:
(1) 15,000 Baht for each child born in or before B.E. 2522 or adopted before B.E. 2522 or
(2) 15,000 Baht for each child born after B.E. 2522 or adopted in or after B.E. 2522, but not exceeding 3 children in total.
In a case where a taxpayer has children both under (1) and (2), he shall first deduct allowance for the children under (1), followed by the children under (2). Except where the taxpayer has 3 or more living children under (1), he shall not deduct allowances for children under (2). If he has less than 3 children under (1), he may deduct allowances for the children under (2); however, the total number of children shall not exceed 3.
In counting the number of children, only living children may be counted in the order of their ages. The counting shall also include those ineligible for deduction of allowance.
Child allowance shall be deducted only if the child is less than 25 years old and is still studying in a university or an equivalent educational institution or is a minor and an adjudged incompetent or quasi-incompetent person, and is under the taxpayers maintenance and support. However, no allowance shall be deducted for a child who has, during the tax year concerned, assessable income of 15,000 Baht or more which does not fall under Section 42.
Child allowance is deductible whether or not the ground for such allowance existed throughout the whole tax year. In a case of an adopted child, only a foster parent can deduct the allowance .
(d) Insurance premiums paid by the taxpayer during the tax year for the taxpayers life insurance policy shall be deducted in an amount actually paid but not exceeding 10,000 Baht, only in the case where the life insurance policy has a duration of 10 years or more and issued by an insurer carrying on business of life insurance in Thailand; 15
15M.R.No.126 Clause 2 (61)In a case where the taxpayers spouse carries life insurance policy and their marital status exists throughout tax year, the spouse shall be entitled to deduct allowance in an amount specified in paragraph 1.
(e) (Repealed by E.A.R.C. (No.16) B.E. 2534 S.8)
(f) the taxpayers child eligible under (c) who is still studying at a public educational institution, an educational institution under the law governing private educational institutions, or a private school under the law governing private school; additional education allowance of 2,000 Baht shall be deducted for each child.
(g) Contribution made by an employee to a provident fund in accordance with the rules, procedures and conditions prescribed by a Ministerial Regulation under Section 65 Ter (2) in an amount actually paid, but not exceeding 10,000 Baht.
In a case where the taxpayers spouse pays a contribution to a provident fund under Paragraph 1 and their marital status exists throughout the tax year, the spouse is entitled to deduct the allowance in an amount specified in Paragraph 1.
(h) Interest paid by the taxpayer to a bank or any other financial institution, a life insurance company, a cooperative or his employer, on loan granted to him for buying, hire-purchasing or constructing a residential building, where such building is mortgaged as collateral for the loan, in an amount actually paid but not exceeding 10,000 Baht; subject to the rules and procedures prescribed by the Director-General with the approval of the Minister and published in the Government Gazette. The aforesaid building includes land. 16
16N.RD. Re: Evidence of Deduction of Allowance for Interest on Loan. N.DG.IT.No.86(i) Contribution made by the taxpayer to the social security fund under the law governing social security in an amount actually paid.
In a case where the taxpayers spouse pays a contribution to a social security fund under Paragraph 1 and their marital status exists throughout the tax year, the spouse is entitled to deduct the allowance in an amount specified in Paragraph 1.
(2) Where both husband and wife have income and their marital status exists throughout the tax year, the total allowance under (1) (a) and (b) shall be 60,000 Baht. If their marital status does not exist throughout the tax year, each may separately deduct an allowance under (1) (a) and for the allowance deducted under (c), (f) and (g), each may separately deduct, for each case, one half of the allowance in accordance with the prescribed rules.
(3) In the case where the taxpayer is not a resident of Thailand, the allowance under (1) (b) (c) and (f) shall be deductible only for the spouse and child who are residents of Thailand.
(4) In the case where the taxpayer dies during the tax year, the allowance shall be deductible as if the deceased were alive throughout the tax year in which he dies.
(5) In the case where the taxpayer is an undivided estate, the allowance of 30,000 Baht shall be deducted.
(6) In the case where the taxpayer is a non-registered ordinary partnership or non-juristic body of persons, the allowance shall be deductible under (1) (a) for each partner or person who is a resident of Thailand but shall not exceed 60,000 Baht in total.
(7) After the deduction of the allowances under (1), (2), (3), (4), (5), or (6), the taxpayer may further deduct the following donation allowance in an amount actually donated but not exceeding 10 per cent of the remaining amount after the deduction of expenses and allowances:
(a) money donated to public hospitals and educational institutions,
(b) money donated to charity organizations, hospitals or educational institutions as prescribed by the Minister and published in the Royal Gazette.17
17R.D.No.317 Notification of the Ministry of Finance on Income Tax and Value Added Tax. Re: Criteria for Consideration and Announcement of Organizations, Public Charitable Institutions, Clinics and Educational Institutions under Section 47 (7) (b) of the Revenue Code and Section 3 (4) (b) of the Royal Decree under the Revenue Code Regarding Value Added Tax Exemption (No.239), B.E. 2534 (1991) as Amended by the Royal Decree Issued under the Revenue Code Regarding Value Added Tax Exemption (No.254), B.E.2535 (1992)Section 47 Bis A taxpayer deriving income under Section 40 (4) (b) from a company or juristic partnership established under the Thai law shall receive a tax credit. The amount of tax credit is calculated by multiplying dividend or share of profit received with the income tax rate which is divided by the difference between 100 and the said income tax rate of the paying company or juristic partnership. In the case where the paying company or juristic partnership is subject to many income tax rates, it shall clearly specify the income tax rate of the business from which the payment is made in the certificate of withholding tax deduction.18
18N.DG.IT.No.62The said tax credit under paragraph 1 shall be included as assessable income and calculated the income tax in accordance with Section 48. Then the said tax credit shall be deducted from the total amount of tax payable. If the tax credit is less than the tax payable, the taxpayer shall pay the difference, if more, he shall be entitled to a refund.
The provisions of Paragraphs 1 and 2 shall not apply to a taxpayer who is not domiciled in Thailand and is not a resident of Thailand.
In the case where a company or juristic partnership paying dividends declares in the withholding tax certificate the information mentioned in paragraph 1 incorrectly and thereby the computed credit exceeds the amount that the taxpayer is entitled to, the payer of income shall be jointly liable with the recipient of income in an amount over-credited or underpaid. And if the payer or taxpayer fails to pay the amount within 7 days from the date of receiving a written notice from the assessment official, such amount shall be deemed tax arrears. If the assessment official finds out that the calculated tax credit is less than the amount receivable by the taxpayer, the taxpayer shall be informed of the right for refund under the law.
Section 48 The assessable income is subject to income tax as follows:
(1) Assessable income after deduction in accordance with Section 42 Bis to Section 47 or Section 57 Quinque shall be net income subject to tax at the rates prescribed in the Income Tax Schedule at the end of this Chapter. 6
6R.D.No.470(2) For a taxpayer having assessable income from 120,000 baht or more, the tax calculated in accordance with (1) shall not be less than 0.5 per cent of the total amount of the assessable income. 7
7R.D.No.480The assessable income under (2) shall not include the assessable income under Section 40 (1).
(3) The taxpayer may elect to pay tax at the rate of 15.0 per cent of the following income under Section 40 (4) (a) and (g) instead of calculating the amount of tax as under (1) and (2):
(a) Interest on a bond, interest on a deposit with a bank in Thailand, interest on a deposit with a cooperative, interest on a debenture, interest on a bill received from a company or juristic partnership or any other juristic person, interest received from a financial institution established under a specific law in Thailand for the purpose of providing a loan in order to promote agriculture, commerce or industry.8
8R.D.No.290R.CT.No.19/2533
(b) The difference between the redemption value and the selling price of a bill or debt instrument issued by a company or juristic partnership or any other juristic person.
(c) Gains derived from transfer of a bond, debenture, bill or debt instrument issued by a company or juristic partnership or any other juristic person.
The taxpayer who is a resident of Thailand may elect to pay tax at the rate of 10.0 per cent of the income, instead of calculating the amount of tax as under (1) and (2), only for the income under Section 40 (4) (b) received from a company or juristic partnership established under the Thai law, a mutual fund, or a financial institution established under a specific law in Thailand for the purpose of providing a loan in order to promote agriculture, commerce or industry.
(4) The taxpayer may elect to pay tax, instead of calculating the amount of tax as under (1) and (2), only for the income under Section 40 (8) received from sale of an immovable property acquired by inheritance or acquired not in a commercial or profitable manner, as follows:
(a) For income from sale of an immovable property acquired by inheritance or by way of gift, the tax payable is calculated by deducting expenses at 50 per cent of the income, divided by the number of years of holding the property, multiply the income tax rate, and multiplied by the number of years.
(b) For income from sale of an immovable property acquired by any other means apart from (a), the tax payable is calculated by deducting expenses at the rate prescribed by a Royal Decree, divided by the number of years of holding the property, multiply the income tax rate, and multiplied by the number of years. 9
9R.D.No.165In the case where the taxpayer elects to pay tax by this method other than (1) and (2), then the total tax payable shall not exceed 20 per cent of the sale price.
In the case where the taxpayer elects to pay tax by method (1) and (2), he may deduct expenses at the rate of 50 per cent of the income under (a), or in accordance with a Royal Decree under (b), as the case may be, and the remaining amount shall be included with other income in tax calculation.
The term number of years of holding the property in (a) or (b) means the number of years as from the year of the acquisition of ownership or possessory right in an immovable property to the year of the transfer of such ownership or possessory right. A period exceeding ten years shall be treated as ten years only, and a fraction of a year shall be counted as one year.10
10R.CT.18/2533(4/1) The taxpayer may elect to pay tax at the rate of 5 percent of the income for the portion exceeding 20 million baht instead of calculating the amount of tax as under (1) (2) for the income under section 40(8) derived from the transfer of ownership or possessory right in an immovable property without any consideration to a lawful child, not including an adopted child which is not exempted under section 42(26).
(5) The taxpayer may elect to pay tax, instead of calculating the amount of tax as under (1) and (2), the income under Section 40 (1) and (2) which is paid in lump sum by the employer due to the termination of employment contract which is calculated on the basis of the duration of employment and paid in accordance with the rules prescribed by the Director-General. The tax payable is calculated by deducting assessable income with expenses which is calculated by 7,000 baht multiplied by the number of employment years but not exceeding the amount of assessable income, then further deduction is allowed at the rate of 50 per cent of the remaining income, and then multiplied by tax rate.
In the case where such assessable income is paid in the form of gratuity and in the form of pensions, only the gratuity shall be treated as lump sum payment made by the employer due to termination of employment contract, and the amount of expenses allowed shall be 3,500 baht.
In the case of gratuity or similar payments made by a government authority, the number of employment years under Paragraph 1 shall be used as the basis in the calculation of such gratuity or similar payments in accordance with the law, rules or requirements of the government authority.
In the calculation of the number of employment years other than the case under Paragraph 3, a fraction of a year amounting to one hundred and eighty three days, shall be treated as one year, otherwise it shall be ignored.11
11N.DG.IT.No.45The income tax assessed by the assessment official that is less than 5 Baht shall be waived.
"(6) The taxpayer may elect to pay tax at the rate of 5 percent of the income for the portion exceeding 20 million baht instead of calculating the amount of tax as under (1) (2) for the income under section 40(8) derived from maintenances and support or gift from ascendants, descendants or spouse which is not exempted under section 42(27).
(7) The taxpayer may elect to pay tax at the rate of 5 percent of the income for the portion exceeding 10 million baht instead of calculating the amount of tax as under (1) (2) for the income under section 40(8) derived from maintenance and support under moral purposes or gift received in a ceremony or on occasions in accordance with custom and tradition from persons who are not ascendants, descendants or spouse which is not exempted under section 42(28)."
R.C.A.A. (No. 40) B.E. 2558
Section 48 Bis. A government enterprise shall pay income tax on behalf of a seller who purchased goods at any or every stage from such enterprise in accordance with procedures, rates and types of goods as prescribed by a Ministerial regulation. Such income tax is paid only on income from the sale of such goods.
The tax paid on behalf the taxpayer under paragraph 1 shall be treated as credit of the taxpayer in tax calculation.25
25M.R.No.134Section 48 Ter. (Repealed by R.C.A.A. (N0.30) B.E. 2535.)
Section 49. In the case where a taxpayer deriving income does not file a tax return, or the assessment official considers that he underreports the amount of his taxable income, the assessment official with the approval of the Director-General shall have the power to determine the amount of his net income on the basis of the money or property owned or possessed by such taxpayer, his expenditure or standard of living or his behavior, or the income statistics either of the taxpayer or of other persons carrying on a similar business. The official shall make an assessment accordingly and give the taxpayer a notice of the amount of tax payable. In this respect, the provisions of Sections 19 through 26 shall apply mutatis mutandis.
Section 49 Bis. In the case where the ownership or possessory right in an immovable property is transferred whether with or without a consideration, and regardless of the market price, the assessment official shall determine the sale price by applying the appraised value used for collecting registration and juristic acts fees under the Land Code.
Section 50. A person, partnership, company, association or body of persons paying assessable income under Section 40 shall withhold income tax at every time of payment in accordance with the following methods:
(1) In the case of paying assessable income under Section 40 (1) and (2), the amount of withholding tax is calculated as follows: multiply the assessable income paid with the number of times of payments; calculate the income tax in accordance with the rules in Section 48, and then divide the amount of tax calculated by the number of times of payment.
If the division of the calculated tax by the number of times of payments under paragraph 1 results in a fraction, such fraction shall be added to the amount of withholding tax on the last payment in that year so that the total withholding tax equals the tax liability for the whole year.
In the case of paying assessable income under Section 40 (1) and (2) in lump sum, by the employer due to the termination of employment contract, which is calculated on the basis of the duration of employment and paid in accordance with the rules prescribed by the Director-General, withholding tax shall be calculated in accordance with the rules in Section 48 (5).
In the case of paying assessable income under Section 40 (2), other than as described in paragraph 3, to a non-resident, withholding tax shall be made at the rate of 15.0 per cent of the income. 26
26N.DG.IT.No.45(2) In the case of paying assessable income under Section 40 (3) and (4), withholding tax shall be made at the income tax rate; except-
(a) In the case of paying assessable income under Section 40 (3) and (4), not specified in (b), (c), (d) and (e), to a non-resident, withholding tax shall be made at the rate of 15.0 per cent of the income;27
27R.D.No.270(b) In the case of paying assessable income specified in Section 48 (3) (a) and (c), withholding tax shall be made at the rate of 15.0 per cent of the income; 28
28R.D.No.290(c) In the case of paying assessable income specified in Section 48 (3) (b), the issuer of the bill or debt instrument or a juristic person who is the issuer of such bill or instrument shall be deemed to be the payer of assessable income and shall withhold income tax from the taxpayer at the rate of 15.0 per cent of the income.
(d) In the case of paying assessable income under Section 40 (4) (a) not specified in (b) and (c) of this Section, to a resident taxpayer, if the payer is not a juristic person, he is not liable to withhold tax under this Section;
(e) In the case of paying assessable income under Section 40 (4) (b), withholding tax shall be made at the rate of 10.0 per cent of the income. 29
29R.D.No.262 No.270 R.CT.No.20/2533 No.21/2533(3) In the case of paying assessable income under Section 40 (5) and (6) to a non-resident taxpayer, withholding tax shall be made at the rate of 15.0 per cent of the income.
(4) Except for the case in (5), where payer of income under this Section is the Government, a government enterprise, a municipality, a sanitation district or any other local government authority and pays assessable income under Section 40 (5), (6), (7) or (8), except payment for the purchase of agricultural produce, at a total amount of 10,000 baht or more to any one recipient; even if that total payment is divided into individual payments, the amount of which is less than 10,000 baht at one time; withholding tax shall be made at the rate of 1 per cent. However, withholding tax from the prize won in a contest or competition shall be made at the income tax rate.
(5) In the case of paying assessable income under Section 40 (8), to a seller of an immovable property, withholding tax shall be made as follows:
(a) In respect of an immovable property acquired by inheritance or by way of gift, tax shall be calculated in accordance with the rule in Section 48 (4) (a), and withholding tax shall be made at such amount.
(b) In respect of an immovable property acquired by any means other than (a), deductions shall be allowed as prescribed by a royal decree; tax shall be calculated in accordance with Section 48 (4) (b); and withholding tax shall be made at such amount.30
30R.D.No.165 No.376(6) In the case of the transfer of ownership or possessory right in an immovable property without any consideration, the transferor shall be deemed to be the payer of the income and shall withhold tax in accordance with (5), except in the case of transferring to a legitimate child, not including an adopted child, the transferor shall withhold tax 5 percent of income for the portion exceeding 20 million baht
R.C.A.A. (No. 40) B.E. 2558
Section 50 Bis. The person liable to withhold tax shall issue to the taxpayer, from whom tax is withheld, a withholding tax certificate in duplicate, each copy having the same contents, as follows:
(1) In the case of Section 3 Tredecim, the certificate shall be issued immediately every time tax is withheld.
(2) In the case of Section 50 (1), the certificate shall be issued within the 15th day of February in the year following the tax year, or within one month from the date of the termination of employment during the tax year of the taxpayer from whom tax is withheld.
(3) In the case of Section 50 (2) (3) or (4), the certificate shall be issued immediately every time tax is withheld.
A withholding tax certificate shall be in the form prescribed by the Director-General.31
31N.DG.IT.No.62The Director-General has the power to exempt the issuance of a withholding tax certificate in the case where he deems appropriate.32
32N.DG.IT.No.9Section 51 For the purpose of examination of withholding of taxes, the assessment official may send a notice to a person, partnership, company, association, or body of persons requiring him to produce accounts showing payments of the assessable income under Section 40 (1), (2), (3), (4), and (7) or other relevant evidences as he deems appropriate. The recipient of the notice shall comply within 15 days from the date of receiving the notice.
Section 52 A person, partnership, company, association or body of person liable to withhold tax under Section 50 (1) (2) (3) and (4) shall, whether or not the tax has already been withheld, remit the tax at the Amphur office within 7 days from the date of payment. 33
33N.MF. Re: Extension of Timeframes for Remittance of Withholding Income Taxes, Remittance of Income Taxes, Remittance of Value Added Taxes and Filing of Returns.The person liable to withhold tax under Section 50 (5) and (6) shall remit the tax to the competent official who execute registration of rights and juristic acts at the time of registration, and such official shall not execute the registration unless the tax is remitted correctly in full amount. In the case where the registration of rights and juristic acts is not needed, the remittance shall be made under Paragraph 1.
The tax withheld under Paragraph 2 shall be remitted as government revenue under the regulation prescribed by the Minister.
Section 52 Bis A taxpayer deriving assessable income, which is not subject to withholding tax, in an amount of 10,000 baht or more may, prior to the time limit for filing returns under Section 56, pay tax in accordance with the rules in Section 48 at the Amphur office as well as file a return in the form prescribed by the Director-General.34
34N.DG.IT.No.28The tax paid under the Paragraph 1 shall be treated as credit against his tax liability in the tax calculation.
Section 53 In the case where the government enterprise or an organization of the government pays assessable income under Section 40, the official making the payment shall have the duty to ensure that the amount of tax to be withheld under Section 50 has been duly calculated and entered in the Disbursement Requisition Form, and to withhold the said amount before making payment. If no disbursement is made, the official making the payment shall comply with Sections 50, 52 and 59 mutatis mutandis.
Section 54 If the payer of income under Sections 50 and 53 does not withhold and remit tax or remits incorrect amount of tax, he shall be jointly liable with the taxpayer to pay the tax payable in an amount not withheld or remitted or in the missing amount, as the case may be.
In the case where the payer of income has withheld tax under Section 50 or 53, the taxpayer shall be discharged from the liability to pay tax in an amount equal to the amount withheld by the payer of income and only the payer of income shall be liable to that tax amount.
Section 55 The collection of tax by withholding at source in accordance with Sections 50 and 53 shall not prevent the assessment official to collect such tax by other methods.
Section 56 Every taxpayer except a minor or a person adjudged incompetent or quasi-incompetent shall, on or before the last day of March every year, file to the official appointed by the Minister a tax return reporting the assessable income received in the preceding tax year in the form prescribed by the Director-General, if such person-12
12N.DG.IT.No.28(1) has no spouse and has the assessable income of the preceding tax year exceeds 60,000 baht,
(2) has no spouse and has the assessable income of the preceding tax year under only Section 40 (1) exceeds 120,000 baht,
(3) has a spouse and the assessable income of the preceding tax year exceeds 120,000 baht, or
(4) has a spouse and the assessable income of the preceding tax year under only Section 40 (1) exceeds 220,000 baht.
In the case where an ordinary partnership or a non-juristic body of persons has assessable income during the preceding tax year exceeding the amount specified in (1), its director or manager shall in its name file a tax return of the income that it received in the preceding tax year within the time limit and in the form as prescribed in Paragraph 1. The director or manager shall, in such case, be liable for tax payment in the name of such partnership or body of persons on the total amount of the assessable income as if such partnership or body of persons were a single undivided individual. Each partner or person in the body is not required to file a separate tax return. However, if the partnership or body of persons has tax arrears, every partner or person in the body shall be jointly liable to pay such tax arrears.13
13 N.DG.IT.No.28 R.CT.No.24/2536Section 56 Bis For the purpose of tax collection prior to the time limit under Section 56, the taxpayer liable to file a tax return under Sections 56, 57, 57 Bis, and 57 Ter shall file a tax return in the form prescribed by the Director-General, within the month of September of every tax year, reporting only the income under Section 40 (5), (6), (7) or (8) derived during the period from January to June. 37
37N.DG.IT.No.108Income under Section 40 (5) in accordance with paragraph 1 does not include any key money, construction cost contribution, repairing charge, value of buildings or houses received in ownership.
With respect to tax return filing under paragraph 1, tax shall be calculated in accordance with Section 48, by deducting allowances under Section 47 but only for one half; and the tax shall be paid, if any, at the time of filing such tax return to the official under Section 56.
The tax paid under Paragraph 3 shall be treated as credit against tax liability in tax calculation in accordance with Section 57 Quarter.
Section 57 If a taxpayer who has assessable income under paragraph 1 of Section 56 is a minor, a person adjudged incompetent or quasi-incompetent, or a foreign resident, then his legal representative, guardian, curator, or manager of the business generating such assessable income, as the case may be, shall comply with the provisions of paragraph 1 of Section 56, and shall be his agent for payment of tax.
Section 57 Bis If a taxpayer who has assessable income under paragraph 1 of Section 56, dies before he has complied with the provisions of Paragraph 1 of Section 56, or before his legal representative, guardian or curator has complied with the provisions of Section 57, an estate administrator, his heir or the possessor of the estate, as the case may be, shall have the duty to file the tax return on his behalf and shall include all assessable income derived by the deceased and his estate throughout the tax year in which he died as the total amount of assessable income.
In respect of the following years, if the undivided estate of the deceased derives the assessable income in the tax year concerned which exceeds the amount specified in Section 56 (1), the estate administrator, or heir or possessor of the estate, as the case may be, shall have the duty to comply with the provisions of this Part in the name of the undivided estate of the deceased.
Section 57 Ter
(Repealed by E.A.R.C. (No.18) B.E. 2555 S.4)
Section 57 Quarter Subject to the provisions of Section 64, if there is any tax payable with respect to tax return filing under Section 56, 57, 57 bis, 57 Ter or 57 Quinque, the tax shall be paid at the local Amphur office within the time limit together with the tax return filing.
Section 57 Quinque
(Repealed by E.A.R.C. (No.18) B.E. 2555 S.5)
Section 57 Sex In collecting income tax from husband and wife, each shall file a tax return reporting the assessable income received in the preceding tax year under Section 56.
In the case of joint income which cannot be apportioned between husband and wife, one-half of the income is deemed to be received by each spouse, except in the case of assessable income under Section 40 (8), the joint income shall be apportioned as agreed by the spouses and the combined amount shall not be less than the total amount of joint income received. In the absence of such an agreement, one-half of the income is deemed to be received by each spouse.
A husband and wife may file a tax return and pay tax jointly by deeming income of one spouse to be income of the other, or may file a tax return and pay tax jointly with one spouse electing to file his or her income under Section 40 (1) separately. However, if there is any tax in delinquent, both husband and wife shall be jointly liable to pay tax due.
Once the method of filing a tax return under Paragraph 2 or 3 in a tax year is elected, it shall not be changed for that particular tax year unless the Director-General grants an approval to change the method of filing.
Section 58 Within the month of January every year-
(1) the head of a ministry, department, local area office, or government enterprise shall file to the assessment official a tax return in the form prescribed by the Director-General indicating the payment of assessable income under Section 40. However, he may be exempted from compliance if the Director-General deems it appropriate;
(2) a person, partnership, company, association or body of persons liable to withhold tax under Section 50 shall file to the assessment official a tax return in the form prescribed by the Director-General indicating the assessable income under Section 40 (1), (2) and (4).38
38N.DG.IT.No.19 No.58Section 59 Together with the tax remittance under Section 52, a person, partnership, company, association or body of persons shall file a tax return in the form prescribed by the Director-General indicating tax withheld of each individual person deriving assessable income.39
39N.MF. Re: Extension of Timeframes for Remittance of Withholding Income Taxes, Remittance of Income Taxes, Remittance of Value Added Taxes and Filing of Returns. N.DG.IT.No.28 No.58 No.106 No.111Section 60 For the purpose of calculating the total amount of assessable income of a taxpayer, the tax withheld and remitted in accordance with Sections 50, 52 and 53 shall be deemed assessable income derived by the taxpayer. The amount of tax withheld and remitted shall be treated as credit against tax liability of the taxpayer in tax calculation.
Section 60 Bis In the case necessary for the purpose of tax collection in accordance with this Chapter, the assessment official shall have the power to assess and charge tax on any person prior to the time limit for tax return filing in accordance with Section 56, 57 or 57 Bis, as the case may be. After the assessment, he shall notify the amount of tax assessed to the taxpayer. In this case, the taxpayer may appeal against the assessment.
The tax assessed and charged in accordance with the provisions of paragraph 1 shall be treated as credit against tax calculated from taxpayers net income.
Section 61 Where the name of any person appears in any important document showing that
(1) he is the owner of the property specified in a written document and such property generates an assessable income, or
(2) he derives an assessable income by virtue of such document;
the assessment official shall have the power to assess and charge the whole amount of tax on such income to the person whose name appears in such document. However, if such person transfers the assessable income to another person, he is entitled to deduct the tax amount imposed on the amount of assessable income which is transferred to that other person.
Section 62 In the case where a minor, a person adjudged incompetent or quasi-incompetent, a deceased, a person who has appointed an agent to manage his properties, or a trust beneficiary is a person deriving income in excess of the threshold, his legal representative, guardian, curator, estate administrator, heir or other person in possession of the estate, agent or trustee, as the case may be, shall have the obligation to comply with the provisions of this Part on behalf of such minor, person adjudged incompetent or quasi-incompetent, deceased, person who has appointed an agent to manage his properties, or trust beneficiary.
Section 63 A person whose tax had been withheld and remitted in an amount that exceeds the amount that he should pay under this Part, shall be entitled to a refund of that amount. However, he shall file a claim to the assessment official within 3 years from the last day of the year in which the excess was withheld.
A person who has no duty to file assessable income in tax year but had been withheld and remitted tax, shall be entitled to a refund of that amount. However, he shall file a claim to the assessment official within 3 years from 31 March of the following year of the year that tax had been withheld.
R.C.A.A. (No.38) B.E. 2557 as on 10 November B.E. 2557
Section 64 Except in the case under Section 18 Bis, if the tax liability in accordance with the provisions of this Part is an amount of 3,000 Baht or over, the taxpayer may pay the tax in 3 equal installments; namely:
(1) In the case where he is liable to pay tax in accordance with Section 56 Bis or 57 Quarter, the first installment shall be paid within the time limit prescribed in such Section, the second installment shall be paid within 1 month from the date when the first installment is due, and the third installment shall be paid within 1 month from the date when the second installment is due.
(2) In any other case, the first installment shall be paid within 30 days from the date of receiving notice of the amount of the tax assessed, the second installment shall be paid within 1 month from the date when the first installment is due, and the third installment shall be paid within 1 month from the date when the second installment is due.
For payment of tax under (1), if any installment under (1) is not paid within the time limit prescribed under (1), the taxpayer shall no longer be entitled to pay in installments and shall pay surcharge in accordance with Section 27 on the unpaid installment as well as the subsequent installments.
Payment of tax under (2) does not constitute a ground for exemption of payment of surcharge in accordance with Section 27 and if the taxpayer does not pay any one installment within the prescribed time limit, he shall no longer be entitled to pay tax in installments.