How Personal Income Tax Thailand Reformed Rates in 2013
Personal income tax Thailand residents pay changed significantly in 2013 — new, more granular tax brackets, plus a Constitutional Court ruling letting married couples file separately.New Personal Income Tax Provisions for 2013
2012 marked the beginning of a significant reduction in Thailand’s corporate income tax rate, which dropped from the long-established 30% to 23% in 2012, and further to 20% in 2013. For 2013, the Thai government also decided to reduce personal income tax rates for Thai tax residents.
Old rates (2012):
| Net Income (THB) | Tax Rate |
|---|---|
| 0 – 150,000 | Exempted |
| 150,001 – 500,000 | 10.00% |
| 500,001 – 1,000,000 | 20.00% |
| 1,000,001 – 4,000,000 | 30.00% |
| 4,000,001+ | 37.00% |
The new system introduces more tax brackets and reduces the rate for several income levels.
New rates (2013):
| Net Income (THB) | Tax Rate |
|---|---|
| 0 – 150,000 | Exempted |
| 150,001 – 300,000 | 5.00% |
| 300,001 – 500,000 | 10.00% |
| 500,001 – 750,000 | 15.00% |
| 750,001 – 1,000,000 | 20.00% |
| 1,000,001 – 2,000,000 | 25.00% |
| 2,000,001 – 4,000,000 | 30.00% |
| 4,000,001+ | 35.00% |
In addition to the new rates, the government was required to implement a ruling of the Constitutional Court. Previously, married couples were required to combine spousal income for personal income tax purposes; the Court found this regulation unconstitutional and ruled that husbands and wives must be permitted to file separately.
For employment income, married couples may now choose to file jointly or separately. Note that under a separate filing, each spouse remains liable for any unpaid taxes of the other.
These changes to personal income tax Thailand imposes on residents reflect a broader shift toward more granular, taxpayer-friendly brackets, while the separate-filing option gives married couples meaningful flexibility in managing their combined tax exposure — though the shared liability rule under separate filing is worth careful consideration before choosing that option.