Maintaining Tax Rate Tables
Thailand Personal Income Tax has two progressive tax rate tables: one for normal income and the second for termination income.
The following table lists the taxable income ranges and related tax rates in the Normal Income Tax Rate table:
|
Taxable Income Range |
Tax Rate |
|---|---|
|
0-150000 |
0 |
|
150001-300000 |
0.05 |
|
300,001-500000 |
0.1 |
|
500001-750000 |
0.15 |
|
750001-1000000 |
0.2 |
|
1000001-2000000 |
0.25 |
|
2000001-5000000 |
0.3 |
|
5000001-99999999 |
0.35 |
The following table lists the taxable income ranges and related tax rates in the Termination Income Tax Rate table:
|
Taxable Income Range |
Tax Rate |
|---|---|
|
0-150000 |
0 |
|
150001–300000 |
0.5 |
|
300001-500000 |
0.1 |
|
500001-750000 |
0.15 |
|
750001-1000000 |
0.2 |
|
1000001-2000000 |
0.25 |
|
2000001-4000000 |
0.3 |
|
4000001-99999999 |
0.35 |
For example, assume that a person's annual taxable income is 520,000 THB. Based on the Normal Income Tax Rate table, the tax calculation would be:
150,000 * 0 for the first 150,000 THB, for a tax amount of 0 THB.
350,000 * 0.1 for the next 350,000 THB, for a tax amount of 35,000 THB.
20,000 * 0.2 for the remainder of the annual income, for a tax amount of 4,000 THB.
Add the three tax amounts together to obtain an annual tax amount of 44,000 THB.
Global Payroll for Thailand adds two columns to the tax rate tables so that the system does not need to read the tables row by row in order to calculate the final tax amount.
The following table lists the Normal Income Tax Rate table with the additional information added by Global Payroll for Thailand:
|
Taxable Income Range |
Tax Rate |
Flat Amount |
Base |
|---|---|---|---|
|
0-150000 |
0 |
0 |
0 |
|
150001-300000 |
0.05 |
0 |
150000 |
|
300,001-5,000,00 |
0.1 |
7500 |
300000 |
|
500001-750000 |
0.15 |
27500 |
500000 |
|
750001-1000000 |
0.2 |
65000 |
750000 |
|
1000001-2000000 |
0.25 |
115000 |
1000000 |
|
2000001-5000000 |
0.3 |
365000 |
2000000 |
|
5000001-99999999 |
0.35 |
1265000 |
5000000 |
The following table lists the Termination Income Tax Rate table with the additional information added by Global Payroll for Thailand:
|
Taxable Income Range |
Tax Rate |
Flat Amount |
Base |
|---|---|---|---|
|
0-150000 |
0 |
||
|
150001-300000 |
0.05 |
0 |
|
|
300001-500000 |
0.1 |
15000 |
300000 |
|
500001-750000 |
0.15 |
35000 |
500000 |
|
750001-1000000 |
0.2 |
72500 |
750000 |
|
1000001-2000000 |
0.25 |
122500 |
1000000 |
|
2000001-4000000 |
0.3 |
372500 |
2000000 |
|
4000001-99999999 |
0.35 |
1272500 |
5000000 |
The modified tax rate tables enable the equation for tax calculation to look like this:
So, for the previous example with an annual taxable income of 520,000 THB, the tax calculation equation would be:
Calculating the Flat Amount for Normal Income
The values entered in the Flat Amount column of the modified Normal Income Tax Rate table are calculated with the following formula:
Multiply the numeric value of the tax income range for the previous row with the tax rate for the previous row and add any flat rate amount from the previous row.
Calculate the individual flat rate amounts in the table as follows:
The first row is 0 THB. There is no previous row with any data.
The second row is 0 THB. This is calculated with the equation 150,000 * 0% = 0. The income range for the first row is 0 to 150,000 THB, which is a range of 150,000 THB. The tax rate for the first row is 0%.
The third row is 35,000 THB. This is calculated with the equation 0 + (35,000 * 10%) = 35,000.
0 is the flat amount from the second row.
350,000 represents the range of the second row, from 150,001 to 500,000 THB.
10% is the tax rate from the second row.
The fourth row is 135,000 THB. This is calculated with the equation 35,000 + (500000 * .15) = 135,000.
35,000 is the flat amount from the third row.
500,000 is the income range for the third row.
20% is the tax rate from the third row.
The fifth row is 1,035,000 THB. This is calculated with the equation 135,000 + (3000000 * 30%) = 1,035,000.
Calculating the Flat Amount for Termination Income
The values entered in the Flat Amount column of the modified Termination Income Tax Rate table are calculated in the same manner as the modified Normal Income Tax Rate table. Calculate the individual flat rate amounts in the table as follows:
The first row is 0 THB. There is no previous row with any data.
The second row is 0 THB. This is calculated with the equation 150,000 * 0% = 0
The third row is 15000 THB. This is calculated with the equation 300000 * 0.05 = 15,000.
The fourth row is 35000 THB. This is calculated with the equation 15,000 + (500000 * 0.1) = 35,000.
The fifth row is 72500 THB. This is calculated with the equation 35000 + (500,000 * 0.1) = 145,000.
The sixth row is 1,045,000 THB. This is calculated with the equation 145,000 + (3,000,000 * 30%) = 1,045,000.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
Bracket Name Page |
GP_PIN |
Name the element and define its basic parameters. |
|
Lookup Rules Page |
GP_BRACKET1 |
Define the lookup rules for a bracket. |
|
Search Keys/Return Columns Page |
GP_BRACKET2 |
Identify the search keys and the return columns for the bracket. |
|
Brackets - Data Page |
GP_BRACKET3 |
Enter lookup values. The search key values and the return column values that you selected in the Brackets - Search Keys / Return Columns page appear here. |
Global Payroll for Thailand delivers two brackets for tax rates:
TAX BR PER RATE
This is the bracket for the Normal Income Tax Rate table.
TAX BR TER RATE
This is the bracket for the Termination Income Tax Rate table.
Important! Do not modify the structure, or any property of these brackets. You should only maintain the data within the brackets if a tax rate change is introduced by the Thailand Revenue Department.