Understanding Employment Taxes in Thailand
Employment taxes in Thailand primarily encompass personal income tax (PIT) and social security contributions. Employers are responsible for withholding these taxes from employees’ salaries and remitting them to the Thai Revenue Department.
Thailand Employees (Citizen and Expat) – Statutory Compliance:
- Personal Income Tax: 5%-35%
- Thailand Tax year is January-December.
- First THB 150,000 income is exempt tax.
- Social Security (Employee 5% and Employer 5%)
- Social Security benefits are tax exempted with max THB 9,000.00 per year.
- Employee Welfare Fund (Mandatory)
- Employee & Employer Rate = 0.25% from 1st October 2025 – 30th September 2030
- Employee & Employer Rate = 0.50% from 1st October 2030 onwards
- Mandatory to company employ employees > 10 & No Provident Fund.
- Optional for any company to provide Provident Fund.
- No capping of Age, Income Computation Base.
- Provident Fund (if any)
- (Employee 2-15% and Employer 2-15% (cannot be lower than employee rate)).
- Provident fund benefits are tax exempt with max. THB 500,000.00.
- (Employee 2-15% and Employer 2-15% (cannot be lower than employee rate)).
Tax Rates for 2025
Thailand employs a progressive personal income tax system for residents, with rates ranging from 0% to 35%. The tax brackets for the 2025 tax year are as follows:
Additionally, both employers and employees are required to contribute to the Social Security Fund (SSF). Each contributes 5% of the employee’s monthly salary, capped at THB 750 per month.
Annual Taxable Income (THB) Tax Rate (%)
| Up to 150,000 | 0% |
| 150,001 – 300,000 | 5% |
| 300,001 – 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,001 – 1,000,000 | 20% |
| 1,000,001 – 2,000,000 | 25% |
| 2,000,001 – 5,000,000 | 30% |
| Over 5,000,000 | 35% |
Employee Welfare Fund (EWF)
Starting from 1 October 2025, in accordance with the Royal Decree on the Collection of Employee Welfare Fund Contributions B.E. 2567 (2024) and the Ministerial Regulation on Contribution Rates B.E. 2567 (2024).
The primary objective of the EWF is to provide financial support to employees who lose their jobs, regardless of the reason (e.g., voluntary resignation, dismissal, or redundancy).
EWF contribution rates and payment deadlines
Contributions are divided into two phases:
| Periods | Employee Contributions | Employer Contributions |
| From 1 October 2025 to 30 September 2030 | 0.25% | 0.25% |
| From 1 October 2030 onward | 0.50% | 0.50% |
Annual Income Tax Returns
The tax year in Thailand aligns with the calendar year, running from January 1 to December 31. Employees must file their annual personal income tax returns by March 31 of the following year. Employers are responsible for withholding and remitting income tax on a monthly basis.
Compliance and Penalties
Timely compliance with tax obligations is essential to avoid penalties. Late filing of tax returns can result in fines ranging from THB 1,000 to THB 2,000 per month. Additionally, a surcharge of 1.5% per month is imposed on any unpaid tax amount. In cases of deliberate tax evasion, offenders may face fines up to THB 200,000, imprisonment of up to one year, or both.
Best Practices for Tax Planning
To ensure compliance and optimize tax liabilities, consider the following best practices:
- Stay Informed: Regularly update yourself on changes in tax laws and regulations to ensure compliance.
- Maintain Accurate Records: Keep detailed records of all income, deductions, and tax filings to support your tax returns.
- Seek Professional Advice: Consult with tax professionals to navigate complex tax matters and identify potential tax-saving opportunities.
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By adhering to these guidelines, both employers and employees can effectively manage their tax responsibilities in Thailand.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Thailand’s employment laws and regulations, please visit the official governmental websites.
Updated on: August 2025
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