Personal income tax in Thailand is calculated on a progressive scale and depends on the total annual income — the higher the income, the higher the tax rate.
On Tuesday, April 19, the government approved a number of amendments to the Tax Code. Starting from 2017, individuals earning less than 26,000 baht per month will be exempt from salary tax.
In addition, both the annual tax deduction and personal allowance will be increased:
- The standard deduction will increase from 40% (capped at 60,000 baht) to 50% (capped at 100,000 baht).
- The personal allowance will be doubled from 30,000 baht to 60,000 baht.
- Annual income up to 5 million baht will be taxed at a rate of 30%.
All of the above changes came into effect in 2017.
Source: The Bangkok Post