As mentioned in the Pattaya Mail article linked above, there is much disagreement in the Expat community as to whether to file a Thai Personal Income Tax Return. Further, one gets conflicting advice on what one should do from both Tax professionals and Thailand Revenue Department Staff.

If you followed the approach suggested by the PCEC, you should have a better understanding of your financial situation. In considering your decision, the following information sets forth additional information to consider in forming  your decision. 

You do not have any “assessable income” to report

The Thai Personal Income Tax Return does not include any place to report income other than "assessable income."

There is conflicting advice given by both Thai Revenue Department staff and tax professionals.  One is do nothing as a Return is not required. The other is to be on the safe side and file a Return with an attached statement showing the amount(s) remitted to Thailand and the reason it is not assessable.

In deciding which advice to follow, you should consider the following if you do not file a Return:

• Based on reports received, most Thai Revenue  Department Offices will tell you that if you have no assessable income you do not need to file a Return and will no accept a TIN application that will allow you to do so if you do not already have one.
• If you consult with a Tax Professional you may get advice either way - no need to file or yes, you should file to avoid risk of being fined at a later date for not filing.  If their advice is to file a return you may wish to consider (1) their fee for obtaining a TIN and/or filing a Return, (2) the risk of the Revenue Department subsequently selecting you for audit, and (3) the fine for not filing a Return (which may or may not happen), is 2,000 baht.

You have “assessable income,” but it is not enough to result in a tax liability

Similar to Thai Immigration Offices, Thai Revenue Offices differ from one location to the other.  One is that if there is no tax liability, there is no need for a TIN or to file a Tax Return. The other is that a Tax Return should be filed showing assessable income along with appropriate deductions and allowances.

In the event of an eventual audit, it will be the Revenue Department staff conducting the audit that will decide whether you should have filed a Return. If yes, the fine is 2,000 baht for failure to file.

You have “assessable income” and have a tax liability

The Thai Revenue Department will issue a TIN and assist in filing a Tax Return or you can use the services of a tax professional. 

One tax professional speaking to the Club advised Expats to not bother with filing a Thai Income Tax Return as Thai Revenue resources are limited and the risk of a future audit is unlikely. 

However, this goes against the advice of most other tax professionals on this subject including one that has also spoken to the Club. Their advice as it is from the Thai Revenue Offices is to obey the rules and file the required Thai Personal Tax Return if you have a tax liability. 

In making your decision, you need to consider the penalties for not filing a Return and paying the tax owed - See Tax Penalty section below.

Fines and surcharges are one form of punishment related to taxes and duties, and there could be additional criminal penalties depending on the severity of the offense.

For instance, if an individual files their taxes on time but fails to pay the full amount, or submits their tax forms late, neglects to submit, or evades tax form submission, they will have to pay additional charges and fines as per the law. If they refuse to pay, they may face criminal charges.

Click here for Thailand Public Relations Department* information on tax penalties.

The penalties can be categorized as follows:

1. If taxes are not paid within the specified period, an additional 1.5% surcharge per month (a fraction of a month is counted as one month) of the tax due will be imposed from the day following the deadline for filing until the tax is paid.
2. If tax officials issue a summons and it is found that no tax form has been submitted or the tax paid is less than due, in addition to the surcharge, the individual will also be liable to pay a fine of either equal to or double the amount of tax due, depending on the case. The fine may be reduced or waived as per the director's regulations, with the Minister's approval.
3. If the tax forms (Form Por Ngor Dor 90, 91, or 94) are not submitted within the due date, a maximum fine of 2,000 Baht may be imposed.
4. If someone intentionally provides false information, presents false evidence, or commits fraud to evade or attempt to evade taxes, they may face imprisonment ranging from 3 months to 7 years and a fine ranging from 2,000 Baht to 200,000 Baht.
5. If there is a deliberate intention to not file tax forms in order to evade taxes, the individual may face a fine of up to 200,000 Baht, imprisonment of up to 1 year, or both.

* Thailand.go.th is a Thai government website under the responsibility of the Public Relations Department, providing accurate and comprehensive information for Thai people and foreigners.

Whatever decision you make, we suggest that you retain your records in the event of any eventual audit.  It is our understanding that the Revenue Department has up to 10 years following the due date of Thailand Personal Income Tax return.

The due date is on the 31st of March in the year following the calendar year to be reported.

Thai Tax

Identification

Number

Thai Revenue

Department

Offices in Pattaya

There are two Revenue Department Offices in Pattaya. One is in Naklua and the other Jomtien. Click here for information on location and reports by fellow Expats of their experience at these two office.

Tax Professional

Consultant's Offices

in Pattaya

There are several accounting and law office in Pattaya.  These offices can assist in obtaining a Taxpayer Identification Number and/or filing the Thai Personal Income Tax Return.  Their fees vary and they usually offer a free first consultation.  Click here for more information.

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