In Focus Issue 10 | KPMG | TH

In Focus Issue 10

In Focus Issue 10

Personal Income Tax Season for 2016

1000

Key Contacts

Related content

Personal Income Tax Season for 2016

There are things to consider and new items you should be aware of for your 2016 personal income tax filing.

To be forewarned is to be forearmed! So let’s begin. 

Thai tax identification number

• Do you have a Thai tax identification (“ID”) number to file your personal income tax return?

Non-Thai individuals would need to register, if not done so by your employer in Thailand, with the Revenue Department to request a 13-digit Thai tax ID number. Depending on the location of the tax office where you register, it can take 2-3 business days to process your Thai tax ID number.

Thai nationals can use the Thai ID numbers on their Thai Identification Card. 

Due date

• When is the return due?

There are two ways to file your tax return and it determines the due date.

Paper-based manual filing is due by no later than Friday, 31 March 2017 whilst electronic filing is due no later than Monday, 10 April 2017. Any tax due must be paid by the filing deadline or in three equal installments over a period of 3 months.

To E-file your return, a taxpayer needs to register with the Revenue Department through their website (http://www.rd.go.th/publish/ ) to obtain a username and password.  Beware of e-filing if you anticipate having a tax balance owing since the payment method can be complicated and restrictive as it has to be with a bank in Thailand that the Revenue Department has a bank account with. One of the benefits of using E-file to lodge your return is that you can track and monitor the status, particularly any tax refund claim.

Tax form

• Which form should you use?

If you earn employment income exclusively, use 2559 PND.91 (2016 PND.91).  If you earn other income including employment income, use form 2559 PND.90 (2016 PND.90).  For employment income earned from a regional headquarter, international headquarter or international trading company in Thailand which provides reduced tax rates, use form 2559 PND.95 (2016 PND.95).  You can access the form at the Revenue Department website (http://www.rd.go.th/publish/56676.0.html).  The English version for 2016 may not be available.  You can reach out to your employer or KPMG for the English version.

 

Since the Revenue Department has the authority to conduct a tax audit for a period of 2 years (which may be extended to a period of 5 years from the date of filing the tax return in certain instances), we recommend that a copy of your tax return and all supporting documentation should be retained for this period.

Special tax allowance deductions applicable for 2016 – NEW

• Are there any changes to allowances and deductions?

In order to promote and encourage domestic spending in 2016, the Government issued notifications to provide special tax allowances, as followed:

Type of special tax allowance

Nature of spending

Tax deductible amount

Songkran Festival

Food, dining, accommodation and travelling with a package tour in Thailand during the Songkran festival, 9 to 17 April 2016.

Actual amount paid (including VAT) not exceeding THB 15,000.

One-Tumbol-One-Products (“OTOP”) Products

Purchases of any OTOP products made during the period 1 to 31 August 2016.  The products must be registered by the Community Development Department and sold by a VAT registrant.

Actual amount paid (including VAT) not exceeding THB 15,000.

Domestic Travel during 1 January to 31 December 2016

Accommodation and/or tour package in Thailand during 1 January 2016 to 31 December 2016.

 

Advance payment for domestic travel can qualify as long as hotel or tour operator issued official tax invoices during the specified period.

Actual amount paid (including VAT) not exceeding THB 15,000 during January to December 2016.

Domestic Travel during 1 to 31 December 2016

Accommodation and/or tour package in Thailand during 1 to 31 December 2016.

 

Advance payment for domestic travel can qualify as long as hotel or tour operator issued official tax invoices during the specified period.

Actual amount paid (including VAT) not exceeding THB 15,000 during December 2016

Goods and Services

Goods and services, excluding alcoholic drinks, tobacco, fuel for vehicle, automobile, motorcycle, ship and accommodation, in Thailand during 14 to 31 December 2016. 

 

Accommodation spent during this period can be claimed under Domestic Travel Allowance (above).

Actual amount paid (including VAT) not exceeding THB 15,000.

It is important to have official tax invoices for proof of purchases and spending in order to take advantage of these special tax allowances since the tax officers will request this. 

PromptPay System - NEW

• What is the PromptPay System?

With the above special tax allowances granted for 2016, you may be entitled to a tax refund.

Similar to prior years, you will need to request a tax refund when filing your tax return. There is a separate section on the tax return for this request.

Upon review and approval of your tax return by the Revenue Department, they can issue a tax refund cheque in your name.  Alternatively, you can request the tax refund to be transferred directly to your bank account in Thailand.

For 2016 the Revenue Department is encouraging taxpayers to request that the tax refund be transferred directly into your bank account held in Thailand since this will expedite the process.  To do so, you need to register for “PromptPay” at the specific bank in Thailand with your 13-digit Thai tax ID number or Thai ID number on Thai ID card for Thai nationals.

If you are not familiar with the tax filing procedure in Thailand or simply you cannot read Thai, you may appoint your employer or a an advisor to assist you in preparing and submitting your 2016 Thailand tax return on your behalf, providing you sign a power of attorney.

Even though you may authorize someone to assist you, you still need time to collect the data and necessary supporting documents to file your tax return on time.  There are penalties for late filing with additional interest of 1.5 per cent per month on any tax payable (limited to the tax payable).

Should you require any specific advice or assistance on your personal income tax filing, please contact us for assistance.

© 2017 KPMG Phoomchai Tax Ltd., a Thailand limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Connect with us

 

Request for proposal

 

Submit