How to submit your online tax in Thailand

Introduction : An overview of tax obligations in Thailand

Thailand’s tax system has increasingly adopted digital solutions, making it mandatory for certain taxes to be filed and paid online. These include:

1. Personal Income Tax: Mandatory for both residents and non-residents with income earned in Thailand.
2. Value Added Tax (VAT): Applicable to businesses with a turnover exceeding 1.8 million THB.
3. Withholding Tax: Required for businesses making payments to employees, contractors, and suppliers.
4. Corporate Income Tax: Imposed on company profits, filed both mid-year and annually.
5. Specific Business Tax (SBT): Applicable to certain industries, such as finance and real estate.
6. Social Security Contributions: Paid by employers on behalf of their employees.

Each of these taxes requires specific online procedures, from registration and form submission to payment and record-keeping. The following sections will guide you through each of these processes in detail.

Personal Income Tax: How to file online :

Filing personal income tax in Thailand is a legal obligation for residents and non-residents who earn income within the country. The process has been greatly simplified with the introduction of the Revenue Department’s e-filing system, which allows taxpayers to submit their returns from the comfort of their own homes. Despite the convenience, it is important to follow each step carefully to ensure that your tax return is accurate and compliant with Thai law.

Step 1: Registering for e-filing

To file personal income tax online, you must first register on the Revenue Department’s e-filing platform. This involves creating an account using your Thai national ID or passport number (for foreigners), along with a secure password. Once registered, you gain access to all the necessary tax forms and submission tools.

Step 2: Preparing your tax return

For personal income tax, most individuals will use either Form PND 90 or PND 91. The difference lies in the sources of income reported—PND 90 is used for those with multiple income sources, while PND 91 is for those with only employment income.

• Log in to the e-filing system.
• Select the appropriate form (PND 90 or PND 91).
• Enter your income details for the tax year, including salary, bonuses, and other sources of income.
• Input deductions such as expenses, donations, and allowances. The system will guide you on allowable deductions.

Step 3: Submitting the tax return

After reviewing your entries, you can submit the form directly through the e-filing system. You will receive an electronic confirmation of your submission, which should be saved for your records.

Step 4: Paying any tax due

If your calculation shows that you owe tax, the system provides several payment options, including bank transfers, credit cards, and QR codes for mobile payment. Once paid, a receipt is generated electronically.

Value Added Tax (VAT): Online filing procedure :

Value Added Tax (VAT) is one of the most significant taxes for businesses operating in Thailand. Applied to the sale of goods and services, VAT must be filed monthly by companies with a turnover exceeding 1.8 million THB. The online filing process not only streamlines compliance but also minimizes the risks of errors that can occur with manual submissions. Here’s a step-by-step guide to help you navigate the VAT online filing system.

Step 1: Accessing Form PP30

Businesses registered for VAT must file monthly returns using Form PP30. This form is available on the Revenue Department’s e-filing system.

• Log in to the e-filing portal.
• Select Form PP30 from the list of available forms.

Step 2: Entering sales and purchases

You will need to report your total sales and purchases for the month. The system calculates the VAT due based on the data you provide:

• Enter the total sales for the month.
• Enter the total purchases (input tax credits).

Step 3: Reviewing and submitting the form

Review the VAT payable, which is the difference between the VAT collected and the VAT paid. If the input VAT exceeds the output VAT, the system will indicate a credit that can be carried forward.

• Submit the completed form electronically.
• Save the submission confirmation for your records.

Step 4: Making the payment

If there is VAT payable, complete the payment using the e-filing system’s payment options. A payment receipt is issued electronically.

Withholding Tax: A step-by-step process :

Withholding tax plays a critical role in Thailand’s tax system, ensuring that taxes are collected at the source of income. This tax is levied on various types of payments, including salaries, service fees, and royalties. As a business owner or an employer, it is your responsibility to withhold the correct amount of tax and remit it to the Revenue Department. The following steps outline how to complete this process online.

Step 1: Determine the appropriate form

Businesses must file withholding tax for payments made to employees, contractors, and other service providers. The form used depends on the recipient:

• PND 1 for employee salaries.
• PND 3 for payments to non-corporate entities.
• PND 53 for payments to corporate entities.

Step 2: Accessing the correct form

Log into the Revenue Department’s e-filing system and select the appropriate withholding tax form.

• Select Form PND 1, 3, or 53 as needed.

Step 3: Enter payment details

Input the details of payments made during the month and the corresponding tax withheld. The system will calculate the total withholding tax due.

Step 4: Submitting the form

After entering the required data, submit the form electronically. A confirmation of submission will be generated.

Step 5: Payment of withholding tax

Pay the withholding tax online using the available payment options. Save the electronic receipt for future reference.

Corporate Income Tax: Filing mid-year and annual returns

Corporate income tax is a key obligation for businesses operating in Thailand. Companies are required to file returns twice a year—an interim return mid-year and an annual return at the end of the fiscal year. The introduction of the e-filing system has made this process more efficient, reducing the administrative burden and ensuring compliance with Thai tax laws. Below is a detailed guide to filing corporate income tax online.

Step 1: Filing the interim tax return (Form PND 51)

Midway through the fiscal year, companies must file an interim corporate income tax return using Form PND 51. This involves estimating the annual profit and calculating the tax due for the first half of the year.

• Log in to the e-filing portal.
• Select Form PND 51.
• Estimate your annual profit and enter the data.
• Submit the form electronically.

Step 2: Filing the annual return (Form PND 50)

At the end of the fiscal year, companies must submit the annual corporate income tax return using Form PND 50. This form reports the actual profit and final tax liability.

• Access Form PND 50 through the e-filing system.
• Enter the final profit figures.
• Submit the form electronically.

Step 3: Payment of corporate income tax

Any tax due can be paid through the e-filing system, with options for online banking or card payments. Ensure you save the electronic receipt.

Specific Business Tax (SBT): Detailed online filing instructions

Specific Business Tax (SBT) applies to particular businesses such as financial institutions and real estate developers, which are subject to this tax instead of VAT. The process of filing SBT online ensures that these businesses comply with their tax obligations efficiently. The steps below outline how to navigate the online system for SBT filings.

Step 1: Filing Form PT40

Specific Business Tax applies to certain industries and must be reported monthly using Form PT40. The process is similar to VAT but specific to businesses like financial institutions and real estate developers.

• Log in to the e-filing portal.
• Select Form PT40.
• Enter the gross revenue for the month.

Step 2: Calculate and submit the tax

The system calculates the SBT based on the entered revenue. Submit the form electronically after reviewing the calculation.

• Submit the form.
• Make the payment using the available online options.

Social Security Contributions: Online submission guide

Employers in Thailand are required to contribute to the Social Security Fund on behalf of their employees, a critical aspect of employee welfare in the country. The contributions are based on the employees’ wages and must be reported and paid monthly. With the Social Security Office’s online portal, this process is now more streamlined and manageable. Here’s how to handle social security contributions online.

Step 1: Registering with the Social Security Office

Employers must first register for online filing with the Social Security Office. This process is done through the Social Security Office’s online portal.

• Create an account with the Social Security Office.
• Verify your company’s details.

Step 2: Filing monthly contributions

Each month, the company must report the wages paid and calculate the corresponding contributions using Form SSO1-10.

• Log in to the Social Security Office portal.
• Select Form SSO1-10.
• Enter the wage details and calculate the contributions.

Step 3: Submit and pay

Submit the form electronically and make the payment through the portal. Save the electronic receipt for your records.

Conclusion:

Navigating the online tax system in Thailand requires familiarity with the digital platforms and a clear understanding of the specific obligations for each type of tax. By following the step-by-step guides outlined in this article, taxpayers can ensure compliance with Thai tax laws while taking advantage of the convenience offered by online filing systems. This guide serves as a comprehensive resource for individuals and businesses to manage their tax obligations efficiently and effectively.