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SALARY PAYMENT IN Thai baht (THB, ฿)
CONTRACT LANGUAGES Thai / English
PAYROLL TAX 5.2% – 6%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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Thailand employers pay one of the lowest taxes in the world. The average payroll tax is between 5.20% to 6%. The tax year in Thailand runs from 1st January to the 31st December.
There are eight progressive income tax thresholds that employees in Thailand have to pay. The income tax rates are as follows:
| Taxable Income (THB) | Tax rate 2023 |
|---|---|
| First 150,000 THB | 0% |
| 150,001 – 300,000 THB | 5% |
| 300,001 – 500,000 THB | 10% |
| 500,001 – 750,000 THB | 15% |
| 750,001 – 1,000,000 THB | 20% |
| 1,000,001 – 2,000,000 THB | 25% |
| 2,000,001 – 5,000,000 THB | 30% |
| 5,000,001 THB and above | 35% |
Employers are obligated under the Revenue Code of Thailand to withhold employee taxable income based on the thresholds listed above.
Employers are mandated to make the following minimum contributions out of an employee’s salary:
| Contribution item | Contribution rate |
|---|---|
| Pension | 3% |
| Health Insurance (maternity, disability, and death) | 1.5% |
| Unemployment | 0.05% |
| Work Injury Cover | 0.20% – 1% |
Employees also make mandatory contributions as part of their salary. These contributions and amounts are as follows:
This contribution is broken down into the following social security benefits:
| Contribution item | Contribution rate |
|---|---|
| Pension | 3% |
| Health Insurance (maternity, disability and death) | 1.5% |
| Unemployment | 0.05% |
Your business can easily hire employees in Thailand without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The tax bureau in Thailand is called the Thailand Revenue Bureau. The Revenue Bureau is a department of the Ministry of Finance and is responsible for the administration of personal income taxes, corporate and specific business taxes, petroleum income tax, value added tax (VAT), and stamp duties.
Yes, employers are expected to contribute to the social security fund. Employers can also contribute to an employee’s pension fund, health insurance fund, unemployment, and work injury cover.
Employers have a duty to withhold income taxes, involuntary and voluntary contributions for an employee.
Thailand – Individual Income Tax
