Overview
Working in Thailand comes with tax obligation that both employers & employees must be aware of. From personal income tax to social security contributions, Understanding the Thai tax system help everyone to remain fully compliance and legally protected.
Key Regulations
Personal Income Tax
Under current regulations (effective from 1 January 2024) , Thai tax residents are subjected to personal income tax on worldwide income on the portion of income that is brought into Thailand, regardless of where the income was paid or when the income was originally earned. Non-Thai residents on the other hand are taxed from employment or business carried on in Thailand, regardless of where it’s paid from.
Withholding Taxes
Employers must withhold personal income tax from employees’ salaries each month based on progressive tax rates. The tax withheld has to be reported and remitted to the Revenue Department using Form PND1. At the end of the year, employers have to issue a Withholding Tax Certificate (Form 50 Tawi) for staff to file their annual tax return.
Progressive Rates 2025
Deductions & Allowances
Thailand offers a variety of deductions and allowances to reduce taxable income:
• Standard deduction: 50% of income, maximum 100,000 THB
• Personal allowance: 60,000 THB for the taxpayer.
• Spouse allowance: 60,000 THB (if spouse has no income).
• Child allowance: 30,000 THB per child (up to 3 children).
• Other deductions: Contributions to provident funds, life insurance premiums, mortgage interest, donations, and certain government-approved investments.
Annual Tax filing
Employees must file an anuual tax return (Form PND 90/91) by Mar 31 of the following year. If taxes withheld during tax year are more than final tax due, employees can claim a refund. On the other hand, if taxes withheld are not enough, the balance must be paid with the filing.
Summary
• Employee income in Thailand is taxed progressively, with rates ranging from 0% to 35%.
• Employers are responsible for withholding tax each month.
• Employees can benefit from deductions and allowances to reduce their tax liability.
• Annual tax filing is mandatory for all employees, even if tax is fully withheld at source.
เรียบเรียงโดย : www.aplthailand.com
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