Individuals liable to pay tax on their income are classified as either ‘resident’ or ‘non-resident’. A resident is any person living in Thailand for a cumulative 180 days or more in the calendar year.
Keywords: Mazars, Thailand, Tax, Payroll, Personal Income Tax, Social Security Fund, Revenue Department
20 January 2021
A resident will be taxable on income from all sources in Thailand on a cash basis regardless of where the money is paid, and on the portion of income that is brought into Thailand in the same year that it is earned.
A non-resident is only taxable on income from sources in Thailand.
Taxable income covers both cash and benefits in kind and includes income from employment, hire of work, receipts from copyright, interest, dividends, capital gains and the letting of property.
The tax rates in 2021 for employment income and hire of work are as follows:
The amount of assessable taxable income is net of allowances:
The above list is not definitive and allowances on specific classes of income may differ.
* The total amount cannot be more than 100,000 baht when including the allowance for life insurance premiums for the taxpayer and health insurance premium for the taxpayer.
** The amount must not exceed 500,000 baht when including the allowance for provident fund contributions (PVF), a retirement mutual fund (RMF), super savings fund (SSF), national savings fund contributions, pension life insurance premiums, government pension funds, and private teachers’ aid fund contributions.
Social Security Fund and Provident Fund
Employees and employers are required to contribute 5% of their salary, up to a maximum of THB 750 per month, to the Social Security Fund (‘SSF’).
Due to the COVID-19 pandemic, there is a temporary reduction (January to March 2021) in SSF from 5% to 3% for both employees and employers.
A Provident Fund is a managed fund to which voluntary contributions from both the employer and employee are made. The contribution can range between 2% to 15% of monthly remuneration. The employee is allowed to make higher contributions than his or her employer (up to 15%).
Payments and Forms
The employer is responsible for the completion and submission of Form PND 1 and for related withholding tax, social security fund deductions, and provident fund contributions, where applicable. Responsibility for the completion and submission of Form PND 90 or Form 91 rests with the employee.
The Revenue Department has announced that companies registered for e-filing with have an extra eight days to file all tax returns. This incentive will run until January 2024.
- PND.1 to be filed on or before the 15th of the month
- PND.90 and PND.91 to be filed by 8 April
For more information, please refer to the Revenue Department.