[Guide] Thailand - Employee Monthly Tax Exemption

27 June, 2019
By G-Team in Payroll
Gpayroll - thailand tax
Having a new hire and wondering why there is no personal withholding tax calculated by the payroll software? Here is a guide on how you can do a simple check on your payroll with our Tax Rate Report. It is simple and easy.

First, you need to know that employee is exempted from tax if their taxable income is THB 150,000 and below. Here is the taxable income table for your reference. To check whether your employee is tax exempted, go to our payroll software, generate the tax rate report.

User can look at whether “Total Regular & Irregular Income (Net)” is less than 150,000THB. If yes, then the employee is tax exempted.

How the payroll software arrive at 111,950 is as shown below.

All Thai employees have Tax Relief Standard as below:
- Personal Allowance: THB 60,000
- Expense Allowance: THB 100,000
- Social Security Fund THB 9,000 (this employee join company 1 Jun, so he/she will get 750*7 months =THB 5,250)

The monthly basic salary for this new hire is THB 40,000. This is the only remuneration for this employee.

Step 1:  His taxable income of this year is THB 280,000 (40,000 * 7 months = 280,000)
Step 2: Total of Tax Relief is 60,000 + 100,000 + 5,250 +2800 (pension) = THB 168,050
Step 3: So Taxable income - Tax Relief = THB 111,950

This is how the user can do the verification. That's it for now. Remember to subscribe and follow our Facebook and LinkedIn page if you find our articles useful for your business.

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