News & Update

As in any country, tax payments in Thailand are important for the country’s economy. Taxes collected are used to fuel up the economic activities of the country – infrastructure, health and education services, basic necessities, and to support financial requirements of the government in running the country. With all of these services dependent on tax collected by the Thai Revenue Department, it is critical that all tax payments due be paid on time as prescribed by the law under the Thai Revenue Code.

Failure to pay taxes, whether it’s individual or personal income tax or corporate, there are corresponding penalties that will be imposed against the faulty taxpayer. It is therefore, important to know the tax calendar of Thailand.

The tax year in Thailand is the calendar year and every individual liable to taxation is required to file a return not later than 31 March of the following year. Taxpayers deriving income from lease of property, liberal professions, and contractual work and other businesses must file a mid-year tax return by 30 September for income earned during the first half of the year (up to 30 June). This will be creditable against the annual tax liability.

To inhibit this kind of tax penalties, refer to this article. 

Penalties and Surcharge for Personal Income Taxpayers

There are two reasons for imposing penalty- filing of inaccurate return and failure to file a return. The penalty rates are as follows:

• 100% if tax return filed is inaccurate
• 200% if tax return is not filed

The penalty rate may be reduced to 50% if the taxpayer submits a written request to consider and if the assessment officer deems that the taxpayer has no intention of evading tax liabilities and cooperated with the assessment officer during audit.

In addition to the penalty, a person or individual who fails to remit tax payment within the specified time will be imposed a surcharge of 1.5% per month, or fraction thereof, of the taxable total amount subject to a maximum amount equal to the amount of tax to be paid. 

Penalties and Surcharge for Corporate Taxpayers

Corporate taxpayers who fail to comply with tax administration requirements are subject to the same penalties and surcharges imposed on personal income taxpayers. 

Penalties and Surcharge for Value Added Tax (VAT) Payers

• Failure to file monthly VAT returns within the time limit will be imposed a penalty of 200% of tax due
• Miscalculation of amount of tax in return will be imposed a penalty of 100% of underpaid tax
• Misstatement of output tax or input tax amount will be imposed a penalty of 100% of the deficient output tax or the excess input tax
• An additional surcharge of 1.5% per month of the tax underpaid will be imposed to the taxpayer subject to a maximum equal to the amount of the tax due