Personal Income Tax (PIT) and Social Security in Thailand

Personal Income Tax (PIT) and Social Security in Thailand

Thailand's tax and social security systems impose obligations on individuals earning income and employers who hire workers. 

1. Personal Income Tax (PIT)

a. Tax Residency Status

• Resident: An individual is considered a resident of Thailand if they stay in the country for 180 days or more in a calendar year. Residents are taxed on worldwide income.

• Non-Resident: Non-residents are taxed only on income earned in Thailand.

b. Taxable Income

Taxable income includes all income derived from employment, business, investments, or other sources. Common income categories include:

• Salary and wages (including bonuses and allowances).

• Business profits.

• Rental income.

• Dividends and interest.

• Capital gains.

c. Tax Rates (Progressive)

d. Deductions and Allowances

1. Personal Allowance:

• Taxpayer: 60,000 THB.

• Spouse: 60,000 THB (if jointly filed).

2. Dependent Children:

• 30,000 THB per child (limited to three children born after 2018).

3. Other Allowances:

• Parental support: 30,000 THB per dependent parent.

• Life insurance premiums: Up to 100,000 THB.

• Provident fund contributions: Up to 500,000 THB (combined with retirement funds).

• Mortgage interest: Up to 100,000 THB.

4. Standard Expenses:

• A fixed percentage of income (e.g., 50% of salary, capped at 100,000 THB) for certain categories.

e. Filing and Payment

• Deadline: PIT returns must be filed by March 31 of the following year.

• Filing Methods:

• Online via the Revenue Department’s e-filing system.

• Paper submission at local Revenue Department offices.

2. Social Security Contributions

a. Overview

The Social Security Fund (SSF) is a government-mandated program providing benefits for employees in areas such as health care, maternity, unemployment, disability, old age, and death.

b. Contribution Rates (2025)

• Salary Ceiling: Contributions are capped at a monthly salary of 15,000 THB.

• Example: For a salary of 20,000 THB, contributions are calculated on 15,000 THB, meaning 750 THB each from the employer and employee.

c. Coverage and Benefits

1. Health Insurance: Covers medical expenses, including consultations, treatments, and hospitalization.

2. Maternity Leave: Eligible employees receive paid maternity leave benefits.

3. Unemployment: Provides benefits for layoffs, resignation, or dismissal.

4. Pension: Contributions accumulate towards retirement benefits.

d. Filing and Payment of Social Security Contributions

1. Employer Responsibilities:

• Deduct employee contributions from monthly salaries.

• Submit both employer and employee contributions to the Social Security Office by the 15th of the following month.

2. Employee Responsibilities:

• Contributions are automatically deducted by the employer.

3. Penalties for Non-Compliance

• PIT Non-Compliance:

• Late filing: Fine of 2,000 THB.

• Late payment: Surcharge of 1.5% per month on unpaid taxes.

• Underpayment: Penalty of 20% of the underpaid amount.

• Social Security Non-Compliance:

• Late submission: Fines and penalties based on the amount of delayed contributions.

If you need assistance with tax planning, filing returns, or calculating social security contributions, feel free to ask!

XiaoHongshu Facebook-Management YouTube Facebook-Consultant Facebook-HR