Thailand Payroll Compliance Map

Email: bkk4ww@evershinecpa.com
Manager Paul, Speaks Thai and English
WeChat: Paul0864580532

WWT – Thailand Payroll Income Tax Deduction

WWT-TH-01 WWT Tax Entity

Question from client:
Is the Thailand salary income tax levied in national or locals? Or both national and locals?
Are the national and local personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Answer from Evershine RD:
The national government generally enacts laws relating to income tax.
Thailand’s personal income tax rates and minimum and maximum amounts of annual income for each bracket are as follows:

WWT-TH-02 Registration

Question from client:
The Thailand salary income tax collection is under the jurisdiction of which government unit?
The registration of the Thailand salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate?
What is the advance certificate number of the number?
Do you need to use the industrial and commercial certificate e-card to apply?

Answer from Evershine RD:
Income taxes are regulated and administered by the Thailand Revenue Department under the Revenue Code of Thailand.
According to the Thai Revenue Code, all taxpayers must register with the Revenue Authority to receive a taxpayer identification number (TIN).

WWT-TH-03 WWT Order (OD)

Question from client:
What is the order of Thailand salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare?
Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:

Deposit First (DF): Make monthly payments then file the required forms.

WWT-TH-04 Mechanism of Filing (MOF)

Question from client:
Thailand’ salary income tax withholding declaration (information flow determines the tax base)
What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Answer from Evershine RD:
Thailand requires withheld income tax to be reported and paid monthly.
Income tax required to be withheld from employees’ wages during a month must be reported and paid to the Thailand Revenue Department within 7 days of the date of payment, which, for payments made on the last day of a month, causes the payment due date for the withheld income tax to be the 7th day of the following month.
Each payment of withheld income tax for a month must be accompanied by Form P.N.D. 1, Withholding Income Tax Return, which has the same due date as the due date for the withheld income tax detailed on the form.
Form P.N.D. 1 must be submitted to the department even if no income tax was required to be withheld from wages during the month for which the report is applicable.
An annual tax return, Form P.N.D. 1 Kor, which indicates income tax withheld from employees’ wages during a year, must be submitted by employers by Feb. 28 of the year following the year for which data are reported on the form.
Effective from Feb. 1, 2021, to Jan. 31, 2024, the deadlines for filing withholding returns are extended by 8 days for returns filed electronically, meaning monthly returns are due by the 15th of the following month and the annual return is due by March 8 of the following year.

WWT-TH-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for the Thailand salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:
Thailand requires withheld income tax to be reported and paid monthly which is due within 7 days of the date of payment.
Each payment of withheld income tax for a month must be accompanied by Form P.N.D. 1, Withholding Income Tax Return, which has the same due date as the due date for the withheld income tax detailed on the form.
Payments can be electronically submitted through the Revenue Department’s website.

BNF – Deduction of Employee Social Welfare

BNF-TH-01 BNF Entity

Question from client:
Thailand’s social insurance, medical insurance, pensions, and other employee social welfare levy, is it national?
Is it locals? Or is there a national plus local?
If there is a national and locals, are they levied separately? Or levied together?
What is the withholding tax rate?

Answer from Evershine RD:

Thailand’s national government levied taxes on social security benefits.

BNF-TH-02 Registration

Question from client:
Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country?
Paper certificate number application? Or online account application? Website?
Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Answer from Evershine RD:

Thai Provident Fund (TPF)

The Provident Fund in Thailand is a fund set up for voluntary contributions made by an employer and an employee.

Social Security Fund (SSF)

Social taxes are remitted to the Social Security Fund and are regulated and administered by the Social Security Office and the Social Security Act of 1990.
When a company is registered with the Department of Business Development (DBD), it will also be registered as an employer with the Social Security Office (SSO).
The company’s social security registration number will be the 13-digit company registration number issued by the DBD.

Workmen’s Compensation Program/ Fund (WCF)

Thailand’s workers’ compensation program also is known as its workmen’s compensation program, and the Social Security Office also manages the Workmen’s Compensation Fund.
Employers must register with the Social Security Office with the forms listed on the Social Security Office website (NSO 1-01).
Employers must also register their employees (NSO 1-03) with the Social Security Office within 30 days of the date in which an employee becomes eligible to be insured.
Once the employer is registered, you will receive 2 fund certificates, which are Certificate of social security fund registration and Certificate of Compensation Fund registration.

BNF-TH-03 BNF Order (OD)

Question from client:
What is the order of the withholding declaration of social welfare for Thailand employees (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:

Same Period: Report and pay at the same time.

BNF-TH-04 Mechanism of Filing (MOF)

Question from client:
What is the method of reporting for withholding of social benefits for Thailand employees (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? Every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Answer from Evershine RD:

Thai Provident Fund (TPF)

Contributions to a provident fund for an employee’s retirement must be made by the 3rd business day following the date when wages were paid to the employee from which contributions to the fund were to be withheld.

Social Security Fund (SSF)

Social Security Fund contributions required to be withheld from employees’ wages during a month, and an employer’s Social Security Fund contributions due based on wages paid to employees during a month, must be reported and paid to the Thailand Revenue Department by the 15th day of the following month.
The standard form for reporting Social Security Fund contributions to the Social Security Office is the Sor Por Sor 1-10.

Workmen’s Compensation Program/ Fund (WCF)

Contributions to the Workmen’s Compensation Fund generally are made on an annual basis and are due by Jan. 31 of each calendar year, together with Form Kor Tor 26. Reconciliation of any additional Workmen’s Compensation Fund amounts owed, if applicable, must be resolved by Feb. 28, with payment, if applicable, submitted together with Form Kor Tor 20.
However, in the first year of operation in Thailand, an employer must pay the Workmen’s Compensation Fund assessment on the first day of operation in the country.
Register at https://www.sso.go.th/eservices/esv/txn1d05.do to obtain a username and password.
Then access the e-services at https://www.sso.go.th/eservices/esv/login.do.

BNF-TH-05 Mechanism of Payment (MOP)

Question from client:

What is the funding method for Thailand employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:

Social Security Fund (SSF)

To pay the Social Security Office via internet, the companies must apply for services with the Social Security Office and apply for services with the bank by filling out an application and notifying the entrepreneur’s deposit account (savings account or current account) to agree to the bank debiting for payment to the Social Security Office.

Contributions can be paid at Bangkok Social Security Office, Area/ Province/ Branch, through the counter of Krung Thai Bank Public Company Limited, Bank of Ayudhya Public Company Limited, and Thanachart Bank Public Company Limited.
Or through Krungthai Bank’s e-Payment system, Bank of Ayudhya Public Company Limited, Siam Commercial Bank Public Company Limited, Kasikorn Bank Public Company Limited, Bangkok Bank Public Company Limited, Citibank, N.A., Mizuho Bank Co., Ltd. Bangkok Branch and Deutsche Bank (Employer pays by direct debit from bank account) and payment by debit card/ Mastercard credit card, through the counter service.

Workmen’s Compensation Program/ Fund (WCF)

Payment method includes obtaining at the responsible Social Security Office by cash or cheque, obtain at the post office, obtain via bank counter or electronic system (e-Payment).

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Bangkok Evershine BPO Service Limited Corp.
Email: bkk4ww@evershinecpa.com
Manager Paul, Speaks Thai and English
WeChat: Paul0864580532

or
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LinkedIn address:Dale Chen

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(version: 2024/07)

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