Forvis Mazars Payroll Flash News - June 2024
On 18 June 2024, the Cabinet approved a draft Ministerial Regulation to increase the personal income tax exemption for severance pay provided in the event of termination of employment. However, this does not include severance pay provided upon retirement or when an employment contract expires at the end of a set period.
The new personal income tax exemption for severance pay is equal to wages paid for the last 400 days of employment, but not more than THB 600,000, effective retroactively from 1 January 2023.
Taxpayers who received severance pay in 2023 should file an amended personal income tax return for 2023 and request a tax refund by March 2027.
Current regulation | New draft regulation |
Severance pay provided for termination of employment under Thai labour law, not including for retirement or when an employment contract expires at the end of a set period, shall be exempt from personal income tax equal to wages paid in the last 300 days of employment, but not more than THB 300,000. | Severance pay provided for termination of employment under Thai labour law, not including for retirement or when an employment contract expires at the end of a set period, shall be exempt from personal income tax equal to wages paid in the last 400 days of employment, but not more than THB 600,000. |
Source (in Thai):
Royal Thai Government