February 5, 2021

Personal Income Tax Returns – the Sooner the Better

Personal Income Tax Returns – the Sooner the Better

A lesser known service that MBMG provides is that each year we complete and submit the income tax returns for our clients (and our accounting team does this for the staff of our corporate clients) – our service can save a significant amount of your time and for a minimal cost.

We will ensure that you benefit from the statutory allowances

Thailand is a relatively inexpensive place to live tax wise. The more common allowances are for work related expenses (no receipts required); the self-allowance, spouse, parents, child delivery and child allowances (rules changed 2018 for the second child), and for a home mortgage. The work expense allowance also is for those working freelance.

We make sure that the correct form(s) are used: –

There are several tax related forms but the two that are commonly used for income tax are the PND 90 or PND 91. The latter is for company employees while the former is for income that might not be derived from employment. Sometimes it is better to complete both if, for example, you have a work-permit specifying a single work place but you also have commissions or referral income from another firm. Capital gain, interest and dividend income are also other incomes that need to be stated.

Registration: https://canchamthailand.org/event-4143454

The Thai Revenue Department will return your money if you’ve overpaid on taxes and the sooner that you submit your tax returns, the sooner you will receive your rebate. Given that your employer may not know of the tax saving investments that you’ve made in mutual funds, or Thai life assurance then it’s common for many o have you to have overpaid on their income tax. Providing that you submit all of the documented evidence (we can help collate this) then you should not have any problem in receiving your money back. Sometimes rebates are delayed but in most cases they take about a month to materialize if we submit online for you (based on the past two years) and a few months if you submit in person.

Last week the Thai government announced that tax return submissions can be delayed for online submissions from the end of March until the end of June 2020 but not for hardcopies. They also delayed the deadlines for corporate withholding tax (PND 1,2,3, 53 and 54) and VAT (PP .30 and 36) until the end of June. We recommend that you submit as early as possible to ensure no delay on receiving your rebate.

Besides Social Security monthly payments, there are also tax allowances for investing in Retirement Mutual Funds (RMFs) and Super Saver Funds (SSFs). The rules changed for these in 2020 and are not always easy to follow or remember. There’re also Life Assurance Plans that are akin to a defined saving plan, and these are for 10 years and pay out interest each year.

MBMG Investment Advisory has written extensively on all types of tax saving schemes and can provide a bespoke report for you. We can assist you with how to open a fund or subscribing to the life assurance plan. These reports are normally minimally priced but your potential tax saving is multiple times the cost of the report because it is based on your highest tax brackets so a THB 600,000 total investment could save up to THB 180,000 each year based on a 30% income tax bracket. You will find all kinds of valid mutual funds including ones that invest in gold related assets, overseas funds or Thai government bonds.

From October 23rd to December 31st the Thai government provided a special tax allowance for spending at any outlet that paid VAT. Other special tax breaks last year included the SSF(X) one-time investment in the 1H of 2020.

MBMG Investment Advisory is licensed by the Securities and Exchange Commission of Thailand as an Investment Advisor under licence number Dor 06-0055-21.

For more information and to speak with our advisor, please contact us at info@mbmg-investment.com or call on +66 2 665 2534.

Disclaimers:

1. While every effort has been made to ensure that the information contained herein is correct, MBMG Investment Advisory cannot be held responsible for any errors that may occur. The views of the contributors may not necessarily reflect the house view of MBMG Investment Advisory. Views and opinions expressed herein may change with market conditions and should not be used in isolation.

2. Please ensure you understand the nature of the products, return conditions and risks before making any investment decision.

3. An investment is not a deposit, it carries investment risk. Investors are encouraged to make an investment only when investing in such an asset corresponds with their own objectives and only after they have acknowledge all risks and have been informed that the return may be more or less than the initial sum.

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