A. Update

The Thailand Revenue Department has updated Tax Ministerial Regulation No. 394, increasing the personal income tax exemption on statutory severance payments for terminated employees. The exemption is now the lower of the employee's total wages for the last 400 days or THB 600,000, replacing the previous limits of 300 days or THB 300,000, respectively.

Additionally, Ministerial Regulation No. 126, concerning tax exemptions under Section 51 of the Revenue Code, has been revised to reflect this change.

This change is applicable for assessable income received from January 01, B.E. 2566 (January 01, 2023) and onwards

B. Statutory Compliance Release Date: July 17, 2024

C. Effective Date: January 01, 2023

A. Update

Notification issued by the Director-General of the Revenue Department (No.438), dated September 21, 2023, introduces a notable change in the process for the submission of monthly withholding personal income tax returns (PND1) and their summaries (PND1K). As per this latest directive, all companies subject to PND1 and PND1K tax return requirements are now required to adopt the designated online filing format, effective from October 2023. This shift to online filing represents a strategic modernization effort by the Revenue Department, aimed at enhancing and streamlining the tax filing process.

The key difference between the old paper filing forms and the new online filing forms pertains to how income information is reported:

• For the paper filing forms (PND1 & PND1K), individuals are required to manually input specific categories of income, such as salary, additional benefits, and the taxes paid by their employer. These details must be explicitly provided on the printed forms.
• In contrast, online forms require users to select income types on a website or software, but these choices do not automatically show on the PDF when printed.

In case the companies find it challenging to use the online filing system, they would still have an option to do physical filing after submitting a formal letter explaining the reason for the same to the nearest Revenue Department branch office.

B. Statutory Compliance Release Date: September 21, 2023

C. Effective Date: October 1, 2023

A. Update

Due to the COVID-19 impact, the Ministry of Labor reduced Social Security Contribution rates. These measures have been introduced to support employers, entrepreneurs, and insurers, especially low-income people, who have suffered due to COVID-19.

The social security contribution rate during the period of October 2022 to December 2022 will be as follows:

B. Statutory Compliance Release Date: September 20, 2022

C. Effective Date: October 1, 2022 to December 31, 2022

A. Update

Due to COVID-19 impact, the Ministry of Labour reduced Social Security Contribution rate for a period of 3 months starting May 2022 to July 2022 as follows:

• Employer contribution – 1%
• Employee contribution – 1%

B. Statutory Compliance Release Date: April 11, 2022

C. Effective Date: May 01, 2022 to July 31, 2022

A. Update

The PND91 is the personal income tax return and is obliged to be filed by employee/taxpayer. The format of the same report has been changed in December, 2021 for the tax year 2021. The last two pages of report consisting of details of deductions and allowances has been revised.

Please be informed that it is not mandatory for employer to issue same to employee.

B. Statutory Compliance Release Date: December 20 , 2021

C. Effective Date: Financial year 2021

A. Update

The Ministry of Finance has determined donation made to Southern Border Provinces Administrative Centre Welfare Fund as tax exempt donation. The tax exemption is available for the donation made on January 01, 2021, onwards.

This exemption will be included in the standard deduction of Donation, and accordingly the deduction amount shall be the actual amount of donation made not exceeding 10% of Net Assessable Income.

B. Statutory Compliance Release Date: November 19, 2021

C. Effective Date: January 01, 2021

A. Update

The Ministry of Finance has introduced tax exemption through Royal Decree No. 735 for the donation made through electronic donation system to the Social Enterprises Promotion Fund. The tax exemption is available for the donation made during the period November 08, 2021 to December 31, 2023.

This exemption will be included in the standard deduction of Donation, and accordingly the deduction amount shall be the actual amount of donation made not exceeding 10% of Net Assessable Income.

B. Statutory Compliance Release Date: November 09, 2021

C. Effective Date: November 08, 2021

A. Update

The Ministry of Finance has introduced tax exemption through Royal Decree No. 732 for the donation made through electronic donation system to the Equitable Education. The tax exemption is available for the donation made during the period January 01, 2021 to December 31, 2023.

This exemption will be included in the standard deduction of Donation, and accordingly the deduction amount shall be twice the actual amount of donation made not exceeding 10% of Net Assessable Income.

B. Statutory Compliance Release Date: November 09, 2021

C. Effective Date: January 01, 2021 to December 31, 2023

A. Update

The Ministry of Finance has extended the effective period for availing tax exemption introduced by Royal Decree No. 701 for the donation made through electronic donation system to the Office of Permanent Secretary, the Prime Minister’s Office for supporting the resolution of the Coronavirus Infection 2019. The tax exemption is available for the donation made during the period March 06, 2021 to March 05, 2022.

This exemption will be included in the standard deduction of Donation, and accordingly the deduction amount shall be the actual amount of donation made not exceeding 10% of Net Assessable Income.

B. Statutory Compliance Release Date: October 04, 2021

C. Effective Date: March 06, 2021 to March 05, 2022

A. Update

Due to COVID-19 impact, the Ministry of Labour reduced Social Security Contribution rate for a period of 3 months starting September 2021 to November 2021 as follows:

• Employer contribution – 2.5%
• Employee contribution – 2.5%

B. Statutory Compliance Release Date: September 27, 2021

C. Effective Date: September 01, 2021 to November 30, 2021

A. Update

As per Royal Decree no. 719, donations made through an electronic donation system to the National Vaccine Institute to support COVID-19 measures. The donation made from 1 January 2021 to 31 December 2023 is allowed to take as the deduction for the personal income tax. Allowable deduction the amount donated as money, and it must be included in the other donation which is not exceed 10 % of assessable income (net of all exemptions, deductions, and extra charitable donations and allowances). This is like other deductions if employees do not inform their employers to take this deduction on the monthly tax return/payroll. The employees can take it as the deduction on the annual tax return filing and get the tax refund. In case the employees have already filed the annual tax return and forget to take the deduction, they can do the amended annual tax return to get the tax refund.

B. Statutory Compliance Release Date: July 14, 2021

C. Effective Date: January 01, 2021 to December 31, 2023

A. Update

Due to COVID-19 impact, the Ministry of Labour reduced Social Security Contribution rate for a period of 3 months starting June 2021 to August 2021 as follows:

• Employer contribution – 2.5%
• Employee contribution – 2.5%

B. Statutory Compliance Release Date: May 28, 2021

C. Effective Date: June 01, 2021 to August 31, 2021

A. Update

Due to COVID-19 impact, the Ministry of Labour reduced Social Security Contribution rate for 2 months during the period of February to March 2021 as follows:

• Employer contribution – 3%
• Employee contribution – 0.5%

B. Statutory Compliance Release Date: February 05, 2021

C. Effective Date: February 01, 2021 to March 31, 2021

A. Update

Due to COVID-19 impact, the Ministry of Labour reduced Social Security Contribution rate for 3 months during the period of January to March 2021 as follows:

• Employer contribution – 3%
• Employee contribution – 3%

From April 2021 onwards, the regular rate will be applied for the Social Security Contribution as follows:

• Employer contribution – 5%
• Employee contribution – 5%

B. Statutory Compliance Release Date: December 30, 2020

C. Effective Date: January 01, 2021 to March 31, 2021

A. Update

As per the Ministerial Regulation no. 368 tax measure are taken for boosting the consumer spending. The individual can take the expense deduction for the value of goods or services purchased between 23 October – 31 December 2020 as actually paid, up to a maximum of THB 30,000. The purchase must be from 1) sellers VAT Operator 2) Book and/or e-Book excluding Newspaper, Magazine and Journal 3) The product sold under the One Tambon One Product (OTOP) brand.

This allowance deduction is not allowed for purchasing some goods and services i.e. Alcoholic beverages, Tobacco, Newspaper and magazine, Vehicle, Gasoline, Accommodation, Tourism business and guide services.

If employees do not inform their employers to take this deduction on the monthly tax return/payroll. The employees can take it as the deduction on the annual tax return filing and get the tax refund.

B. Statutory Compliance Release Date: October 22, 2020

C. Effective Date: Financial year 2020

A. Update

As per Royal Decree no. 713, donations made through an electronic donation system donated to the government educational institutions, private educational institutions, established in Thailand in accordance with Thai regulation and educational institutions established in Thailand in accordance with treaties or agreements between the Thai government and Specialized Agency of the United Nations organization from January 01, 2020 to December 31, 2021, will be eligible for personal income tax exemption. Allowable deduction is two times the amount donated as money, and it must be included in the other donation which is not exceed 10 % of assessable income (net of all exemptions, deductions, and allowances). If the taxpayers have applied the two-time deductions, they cannot apply the same amount as one-time deduction.

This is like other deductions if employees do not inform their employers to take this deduction on the monthly tax return/payroll. The employees can take it as the deduction on the annual tax return filing and get the tax refund. In case the employees have already filed the annual tax return and forget to take the deduction, they can do the amended annual tax return to get the tax refund.

B. Statutory Compliance Release Date: September 23, 2020

C. Effective Date: Financial Year 2020

A. Update

As a result of the COVID-19, Thailand Government has offered a reduction in rates of Social Security (SSO) contribution as follows and this would be effective from September 1, 2020 to November 30, 2020:

Employee SSO contribution rate is 2% (previously 5%).

Employer SSO contribution rate is 2% (previously 5%).

Employers and / or employees can claim back any excess contribution paid from the Social Security Office.

B. Statutory Compliance Release Date: September 11, 2020

C. Effective Date: September 1, 2020 to November 30, 2020

A. Update

The Ministry of Finance has issued Ministerial Regulation No. 366/2020 implementing the tax exemption in a bid to boost the morale of the healthcare workers dealing with the COVID-19 outbreak in the country. Accordingly, the government will grant tax exemption to certain individuals, including Medical and Health care professionals, who receive special compensation from the Ministry of Public Health (MOPH) for the year of assessment 2020. The special compensation refers to the compensation paid by the MOPH, as approved by the Ministry of Finance (MOF) to the:

1. Healthcare professionals for their work performed in dealing with the COVID-19 pandemic, including diagnosing, investigating, treating, and preventing the spread of the said pandemic; and

2. Other officials and third parties providing COVID-19-related medical and public health consultations.

B. Statutory Compliance Release Date: July 02, 2020

C. Effective Date: January 01, 2020

A. Update

The Ministry of Finance has issued a Royal Decree No. 701 wherein a new tax exemption has been introduced for the donation made through electronic donation system to the Office of Permanent Secretary, the Prime Minister’s Office for supporting the resolution of the Coronavirus Infection 2019. The tax exemption is available for the donation made during the period March 05, 2020 to March 05, 2021.

This exemption will be included in the standard deduction of Donation, and accordingly the deduction amount shall be the actual amount of donation made not exceeding 10% of Net Assessable Income.

B. Statutory Compliance Release Date: July 02, 2020

C. Effective Date: March 05, 2020 to March 05, 2021

A. Update

A new exemption for e-donation is announced through Ministerial Regulation No. 706 by The Revenue Department. 

In accordance with the regulation the exemption is available only when donation made through the e- donation service available on the Revenue Department website. The exemption is limited to twice the actual amount donated but not exceeding 10% of the total income after the deduction of expenses and other tax allowance. 

The new exemption of donation is applicable for the deduction made from January 01, 2020 to December 31, 2022.

B. Statutory Compliance Release Date: June 26, 2020

C. Effective Date: January 01, 2020

A. Update

As a result of the Covid19 pandemic, the Thailand Government has announced an increment in the exemption amount of Health insurance premium paid by employee.

As per the Ministerial regulation No. 365 the health insurance premium deduction is increased to 25000 THB from 15000 THB. This regulation is effective from January 01, 2020. The existing limitation is still in existence i.e. adding up this deduction with Life Insurance Premiums paid, the amount must not exceed 100,000 Baht.

B. Statutory Compliance Release Date: June 26, 2020

C. Effective Date: January 01, 2020

A. Update

A notice of Revenue Department of income tax has announced that the donations paid to The Welfare Fund of the office of the Parliament Secretary, Ministry of Justice which is a government welfare fund is considered as income tax exemption.

This exemption is included in the standard deduction for Donations capped at the maximum of 10% of net assessable income after all exemptions and deductions.

B. Statutory Compliance Release Date: June 08, 2020

C. Effective Date: January 01, 2019

A. Update

The Revenue Department  has passed a Royal Gazette wherein a new tax deduction (as Tax Allowance) has been introduced on the amount invested by the employee in Super Saving Fund (SSF) Extra during the year 2020.

In the Ministerial Regulation, they have defined some conditions and procedures to avail the benefit of newly introduced tax deduction which are as follows:

• Super Saving Fund Extra is separate from regular SSF deduction.
• The deduction is available for investment made during April 01, 2020 to June 30, 2020.
• The maximum tax deduction is 200,000 Baht.
• SSF Extra tax deduction shall be over and above the maximum deduction limit of 500,000 Baht.
• The investments in SSF Extra should be held by employees for at least 10 years from the date of first purchase.
• The above deduction shall be provided only if the employees have invested in a fund whose 65% of net assets are invested in Security Exchange of Thailand-listed securities.

B. Statutory Compliance Release Date: May 27, 2020

C. Effective Date: January 01, 2020

A. Update

As a result of the COVID19 pandemic, the Thailand Government has offered a reduction in rates of SSO contribution. However, it is not officially announced that the reduced rates can be implemented by employers.

According to news on the official site, the contribution rates are effective from March to May 2020 and the proposed rates of contribution are as follows:

Employee SSO contribution rate is 1% (previously 5%) and employer SSO contribution rate is 4% (previously 5%).

B. Statutory Compliance Release Date: April 03, 2020

C. Effective Date: January 01, 2020

A. Update

The PND90/91 is the personal income tax return and is obliged to be filed by employee/taxpayer. The format of the same report has been changed in January, 2020. The last page of report consisting of details of deductions and allowances has been updated.

Please be informed that it is not mandatory for employer to issue same to employee.

B. Statutory Compliance Release Date: January 07, 2020

C. Effective Date: FY 2019