Currently, it is the season for filing the mid-year personal income tax return (PND94). At this stage, approximately half of the projected annual tax is paid.
At the same time, it is still possible to influence the tax burden — both upwards and downwards. Let’s review a real example from our practice involving a married couple.
Joint or separate tax filing?
Spouses can choose to:
- file a joint tax return
- or file separately
The main task is to calculate both options and choose the more beneficial one.
Initial data
Rental income for the first half of the year:
- Total income: 1,400,000 THB
- Husband’s income: 1,000,000 THB
- Wife’s income: 400,000 THB
Option 1. Joint filing
Income: 1,400,000 THB
Standard deduction (30%): 420,000 THB
Personal allowance: 30,000 THB
Spouse allowance: 30,000 THB
Taxable income:
1,400,000 – 420,000 – 30,000 – 30,000 = 920,000 THB
Tax calculation:
- 0 – 150,000 THB → 0% → 0 THB
- 150,001 – 300,000 → 5% → 7,500 THB
- 300,001 – 500,000 → 10% → 20,000 THB
- 500,001 – 750,000 → 15% → 37,500 THB
- 750,001 – 920,000 → 20% → 34,000 THB
Total PIT: 99,000 THB
Option 2. Separate filing
1. Husband
Income: 1,000,000 THB
Deduction (30%): 300,000 THB
Personal allowance: 30,000 THB
Taxable income:
1,000,000 – 300,000 – 30,000 = 670,000 THB
Tax calculation:
- 0 – 150,000 → 0 THB
- 150,001 – 300,000 → 7,500 THB
- 300,001 – 500,000 → 20,000 THB
- 500,001 – 670,000 → 25,500 THB
Total: 53,000 THB
2. Wife
Income: 400,000 THB
Deduction (30%): 120,000 THB
Personal allowance: 30,000 THB
Taxable income:
400,000 – 120,000 – 30,000 = 250,000 THB
Tax calculation:
- 0 – 150,000 → 0 THB
- 150,001 – 250,000 → 5,000 THB
Total: 5,000 THB
Total PIT with separate filing: 58,000 THB
Conclusion
In this case, separate filing is significantly more выгодно:
58,000 THB vs 99,000 THB
Moreover, if the spouses had distributed the income more evenly, the tax burden could have been even lower.
Deadlines and ответственность
The deadline for filing the PND94 mid-year return is the end of September.
Penalties for late filing:
- surcharge of 1.5% per month on the tax amount
- fine from 200 to 2,000 THB
What should be done?
Before filing the return, it is important to:
- calculate both scenarios (joint and separate)
- take into account deductions and allowances
- plan the tax burden in advance
Author: Alexandra Agapitova.
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