Question

Income tax rates schedule “ (1) for the Personal Income Tax Net income which does not exceed 300,000 baht 5 percent Net income which only the amount in excess of    300,000 baht but not exceeding    500,000 baht 10 percent Net income which only the amount in excess of    500,000 baht but not exceeding    750,000 baht    15 percent Net income which only the amount in excess of    750,000 baht   but not exceeding 1,000,000 baht   20 percent Net income which only the amount in excess of    1,000,000 baht but not exceeding 2,000,000 baht     25 percent Net income which only the amount in excess of    2,000,000 baht but not exceeding 5,000,000 baht 30 percent       Net income which only the amount in excess of    5,000,000 baht 35 percent   (the Revenue Code as amended by the Revenue Code Amendment Act (No. 45) B.E.2560) which is applicable for assessable income in the tax year 2560 which tax return shall be filed in 2561 onwards) “ (2) for the Corporate Income Tax “ (a) The tax on net profits of a company or juristic partnership is 20 percent” (Amended by the Revenue Code Amendment Act (No.42) B.E. 2559 (2016) which is applicable for the accounting periods on or after 1 january B.E. 2559 (2016)) “(b) The tax under section 70 not specified in (c) is 15 percent” “(c) The tax under section 70 specified in the case of the payment of assessable income under section 40(4)(b) is 10 percent (d) The tax under section 70 Bis is 10 percent” (Amended by the Revenue Code Amendment Emergency Decree (No.16) B.E. 2534 (1991) which has come into force as from 1 may B.E. 2535 (1992)) “(e) The tax on revenue before deducting any expense of a foundation or association which carries on business that produces revenue not be revenue under section 65 Bis (13) is 10 percent” (Amended by the Revenue Code Amendment Emergency Decree (No.16) B.E. 2534 (1991) which is applicable for the accounting periods on or after 1 january B.E. 2535 (1992))

PRACTICE: Mr. A = Man = husband = employee Mrs. B = Woman = wife = entrepreneur Both are married with 2 children aged 15 and 13. In the year 2017, Mr. A worked as a teacher earning a salary of 50,000 baht per month. The wife engaged in real estate sales brokerage as an entrepreneur and earned a commission of 2.5% on each sale. For the entire 2017, Mrs. B earned 500,000 Baht in commission from real estate sales. The couple paid 5,000 each for life insurance premium. Mrs. B also paid 1,000 Baht per month on health insurance for herself. The couple made a contribution of 5,000 Baht per month to retirement account under Mr. A's name because his employer has a individual retirement account. In the middle of 2017, the couple rented their condo for 10,000 Baht per month. The money from rent was put into a savings account earning 2.5% interest. Each year in December, the couple attend the Red Cross fund raising event. In 2017, the couple donated 50,000 Baht to the Red Cross. QUESTION: What is the income tax liability for the couple if they file a joint return?

Witholding form

https://drive.google.com/file/d/1uVdK6lnPASeZj2DC-9OQRNnYyi4u5Epy/view?usp=drivesdk

Personal income tax https://drive.google.com/file/d/1Vhn1jm6eo7uKSP74CNa2z0OixIUd5-FX/view?usp=drivesdk

Answer 1

The income tax liability for Mr.A and Mrs.B	2017		Status
Income under the salary:			Taxable
Mr.A=(salary*12)=(50000*12)	600000
In an employement income against the deductions income capped at THB1000000	-1000000
Income from the head business or profession:			Taxable
Net amount at 10%	450000
The income of hiring of services aganist the deductions atTHB100000	-100000
Income from the head house property:			Taxable
Let out for 6 months	60000
Other sources income			exempt
Earned 6 months of interestat 15%	1275
Total income	910000
Deductions:
Lic premium of A	5000
Lic premiumof B	5000
Health insurance of B	12000
Retirement contribution of A	60000
Total Donation	50000
Total taxable income	778000
Net income till300000	5%	300000	15000
Net income at 500000 to778000	15%	278000	41700
Net inocme 300000to 500000	10%	200000	20000
The income Tax of Mr.A and Mrs B			76700