While the recent changes in law increased the standard expenses deduction for employment income taxpayers, the opposite is true for self-employed income taxpayers where the new law provides for a reduction of the standard expenses deduction. In 2016 and prior years, self-employed income taxpayers were entitled to claim the standard expenses deduction up to 85 per cent of their income. This would be beneficial where the actual expenses incurred exceed the standard expenses deduction. Due to the significant reduction in the standard expenses deduction, the option of claiming the actual expenses may be more beneficial for self-employed income taxpayers. During the tax audit, the taxpayer cannot revert back to the standard deduction method if the audit results in the itemised deduction being less than the standard expenses deduction.

Source: The Nation Bangkok February 15, 2018 18:00 UTC