Sharewhat is the significance of the half-year tax?
Many people may have questions. Individuals who have income are already filing taxes every year, why do they have to pay half-year tax again? Only those with certain incomes are eligible for the half-year tax. That is, paying taxes for half this year is a relief from the tax burden. Because if there is no filing of the P.N.D. 94 or half-year personal income tax return, individuals must file personal income tax returns and pay large amounts of tax. However, the amount paid can be used to deduct from the calculated annual tax. For example, Mr. A has filed a return and paid half-year personal income tax of 6,000 baht. At the end of the year, He calculates the tax that must be paid in the amount of 9,000 baht. So, he will pay an additional tax of only 3,000 baht (9,000-6,000 baht).
P.N.D. 94
In addition to filing annual personal taxes, there is another group of income that must be taxed in the middle of the year through filing a P.N.D. 94 form or a return for personal income tax filing. For non-salary income from January to June, the tax must be filed between July and September. And when filing this P.N.D. 94 form at the end of the year, income tax must be calculated from January to December and filed P.N.D. 90 again by bringing the amount of tax that has been paid in accordance with the P.N.D. 94 to subtract.
Who is required to submit a Por Ngor Dor 94 form?
Those who must submit a P.N.D. 94 form are individuals having income according to the tax law section 40(5) - (8), which are:
- Category 5: money or benefits derived from renting properties such as land, houses, cars, etc.
- Category 6: income from independent professions such as law, practice of the art of healing, engineering, architecture, accounting, fine arts or other independent professions
- Category 7: Income from contracts that provide essential baggage other than equipment.
- Category 8: income, income from business, commerce, agriculture, industry, transportation or other things other than those specified in income categories 1-7.
A half-year tax payment can be applied for deduction?
"Deductibles" are benefits that help earners pay less tax. Tax payers have the right for the tax deduction in half of the year. The tax abatement scheme is divided into 3 groups as follows
The first group is the group that can reduce half of the full year's right
|
Item |
Deductibles |
|
- personal expenses
|
30,000 baht (60,000 baht for a full year) |
|
- Spouse has no income or having income only under Section 40 (1)-(4)
|
30,000 baht (60,000 baht for a full year) |
|
- Spouse has income, Section 40 (5)-(8) if calculating tax together
|
Personal deductible is 30,000 baht and spouse of income earner is 30,000 baht |
|
- Childcare allowance
|
15,000 baht per person (30,000 baht for a full year) |
|
- Parental alimony
|
15,000 baht per person (30,000 baht for a full year) |
|
-Alimony to the parents of the spouse who has no income |
15,000 baht per person (30,000 baht for a full year) |
|
- Alimony for the disabled or handicapped |
30,000 baht per person (60,000 baht for a full year) |
The second group is the group that can reduce the actual amount paid during the first half of the year
But the deductible may be less than the full year, such as life insurance premiums and interest on housing loans. Both parts can be exercised as actually paid, but not more than 95,000 baht, which is less than a full-year deduction of a maximum of 100,000 baht.
The last group is the group that receives the highest deductible as actually paid during the first half of the year and the maximum deduction amount equal to the full year as follows:
- LTF mutual fund not more than 15% of taxable income in the first half of the year and not more than 500,000 baht
- RMF fund, government pension fund, provident fund, not more than 15% of the taxable income during the first half of the year and not more than 500,000 baht
- Parental health insurance premiums - as actual pay, not more than 15,000 baht
- Social Security money – as actual pay, not more than 9,000 baht
Can I not file personal income tax for half a year?
Failure to file taxes will be punished by law, which is a fine of 2,000 baht and an additional fee (interest) from the tax that must be paid at a rate of 1.5% per month (a fraction of a month is equal to 1 month) starting from the 30th September onwards.
In summary, what everyone needs to know as an individual is to file half-year personal income tax within the period specified by law. Because filing semi-annual taxes is not a burden. But it is a duty and something that everyone should know and understand in order to file and pay taxes correctly.
