SIAC Consulting Co. Ltd
Payroll
Managing payroll for foreign employees in Thailand involves navigating labor laws, immigration rules, taxation, and social security compliance. This guide outlines the essential steps from setup to monthly filing.
1. Overview
Employers must secure the right visa, work permit, and payroll setup. Key requirements include:
Registering for tax and social security.
Withholding and submitting personal income tax monthly.
Filing annual reports and issuing tax certificates.
Ensuring job titles match work permits exactly.
2. Required Documents
Before adding a foreign employee to payroll, collect:
Passport (photo page + stamps)
Non-immigrant “B” or SMART visa
Work permit (matching company, title, location)
Thai Tax ID number
Thai bank account details
Employment contracts detailing salary and benefits.
3. Work Permits & Visa Requirements
Most expats need a Non-Immigrant B visa and corresponding work permit.
SMART Visa holders may have certain exemptions.
Verify the job is not on Thailand’s restricted list.
4. Minimum Wage & Labour Compliance
Minimum wage in Bangkok (from July 2025): THB 400/day.
Compliance with labor entitlements is mandatory (e.g., leave, overtime).
Use bilingual (Thai/English) employment contracts for clarity.
5. Taxation
Tax Residency:
Resident: 180+ days in Thailand, taxed on both Thai-sourced and foreign income remitted to Thailand.
Non-resident: Taxed only on Thai-sourced income.
Personal Income Tax Rates (2025):
0 – 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%
Over 5,000,000 THB: 35%
6. Employer Tax Withholding
File P.N.D.1 monthly, due by the 15th of the following month.
Issue 50 Tawi tax certificates by February 15 for active employees and within a month for leavers.
7. Social Security Contributions
Employers and employees each contribute 5% of wages (max THB 750).
Contributions are due monthly by the 15th.
8. Payroll Process
Monthly Tasks:
Calculate gross-to-net pay.
Withhold income tax and social security.
Submit P.N.D.1 and pay SSO contributions.
Deliver payslips securely.
Year-End Tasks:
File annual P.N.D.1 Kor.
Issue tax certificates.
Reconcile payroll records.
9. Common Mistakes to Avoid
Misclassifying tax residency can lead to penalties.
Ignoring allowances can result in tax issues.
Role/title mismatches can invalidate work authorization.
10. Best Practices
Maintain a compliance calendar for filings.
Utilize e-Filing and automate processes.
Match job titles in payroll with work permits.
Retain all payroll and visa documentation for audits.
Consider outsourcing payroll for expertise and efficiency.
Conclusion
Effectively managing payroll for foreign staff in Thailand requires careful coordination of HR, tax, and immigration processes. With proper documentation and consistent compliance, you can avoid costly errors and legal issues.
Siac Consulting Experts
Specializes in Thai company formation for foreign entrepreneurs, with expertise in BOI registration, and ongoing corporate compliance.
Stay up-to-date
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Payroll
Managing payroll for foreign employees in Thailand involves navigating labor laws, immigration rules, taxation, and social security compliance. This guide outlines the essential steps from setup to monthly filing.
1. Overview
Employers must secure the right visa, work permit, and payroll setup. Key requirements include:
Registering for tax and social security.
Withholding and submitting personal income tax monthly.
Filing annual reports and issuing tax certificates.
Ensuring job titles match work permits exactly.
2. Required Documents
Before adding a foreign employee to payroll, collect:
Passport (photo page + stamps)
Non-immigrant “B” or SMART visa
Work permit (matching company, title, location)
Thai Tax ID number
Thai bank account details
Employment contracts detailing salary and benefits.
3. Work Permits & Visa Requirements
Most expats need a Non-Immigrant B visa and corresponding work permit.
SMART Visa holders may have certain exemptions.
Verify the job is not on Thailand’s restricted list.
4. Minimum Wage & Labour Compliance
Minimum wage in Bangkok (from July 2025): THB 400/day.
Compliance with labor entitlements is mandatory (e.g., leave, overtime).
Use bilingual (Thai/English) employment contracts for clarity.
5. Taxation
Tax Residency:
Resident: 180+ days in Thailand, taxed on both Thai-sourced and foreign income remitted to Thailand.
Non-resident: Taxed only on Thai-sourced income.
Personal Income Tax Rates (2025):
0 – 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%
Over 5,000,000 THB: 35%
6. Employer Tax Withholding
File P.N.D.1 monthly, due by the 15th of the following month.
Issue 50 Tawi tax certificates by February 15 for active employees and within a month for leavers.
7. Social Security Contributions
Employers and employees each contribute 5% of wages (max THB 750).
Contributions are due monthly by the 15th.
8. Payroll Process
Monthly Tasks:
Calculate gross-to-net pay.
Withhold income tax and social security.
Submit P.N.D.1 and pay SSO contributions.
Deliver payslips securely.
Year-End Tasks:
File annual P.N.D.1 Kor.
Issue tax certificates.
Reconcile payroll records.
9. Common Mistakes to Avoid
Misclassifying tax residency can lead to penalties.
Ignoring allowances can result in tax issues.
Role/title mismatches can invalidate work authorization.
10. Best Practices
Maintain a compliance calendar for filings.
Utilize e-Filing and automate processes.
Match job titles in payroll with work permits.
Retain all payroll and visa documentation for audits.
Consider outsourcing payroll for expertise and efficiency.
Conclusion
Effectively managing payroll for foreign staff in Thailand requires careful coordination of HR, tax, and immigration processes. With proper documentation and consistent compliance, you can avoid costly errors and legal issues.
About Me
Siac Consulting Experts
Specializes in Thai company formation for foreign entrepreneurs, with expertise in BOI registration, and ongoing corporate compliance.
Stay up-to-date
Helpful Links
Opening a Corporate Bank Account in Thailand
Opening a Corporate Bank Account in Thailand
Certified English–Thai Translation & Legalization in Thailand
Certified English–Thai Translation & Legalization in Thailand
Thailand Trademark Registration
Thailand Trademark Registration
VAT Registration in Thailand
VAT Registration in Thailand
SIAC Consulting Co. Ltd
Payroll
Mental Health Matters: Traveling and Coping with Anxiety
Managing payroll for foreign employees in Thailand involves navigating labor laws, immigration rules, taxation, and social security compliance. This guide outlines the essential steps from setup to monthly filing.
1. Overview
Employers must secure the right visa, work permit, and payroll setup. Key requirements include:
Registering for tax and social security.
Withholding and submitting personal income tax monthly.
Filing annual reports and issuing tax certificates.
Ensuring job titles match work permits exactly.
2. Required Documents
Before adding a foreign employee to payroll, collect:
Passport (photo page + stamps)
Non-immigrant “B” or SMART visa
Work permit (matching company, title, location)
Thai Tax ID number
Thai bank account details
Employment contracts detailing salary and benefits.
3. Work Permits & Visa Requirements
Most expats need a Non-Immigrant B visa and corresponding work permit.
SMART Visa holders may have certain exemptions.
Verify the job is not on Thailand’s restricted list.
4. Minimum Wage & Labour Compliance
Minimum wage in Bangkok (from July 2025): THB 400/day.
Compliance with labor entitlements is mandatory (e.g., leave, overtime).
Use bilingual (Thai/English) employment contracts for clarity.
5. Taxation
Tax Residency:
Resident: 180+ days in Thailand, taxed on both Thai-sourced and foreign income remitted to Thailand.
Non-resident: Taxed only on Thai-sourced income.
Personal Income Tax Rates (2025):
0 – 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%
Over 5,000,000 THB: 35%
6. Employer Tax Withholding
File P.N.D.1 monthly, due by the 15th of the following month.
Issue 50 Tawi tax certificates by February 15 for active employees and within a month for leavers.
7. Social Security Contributions
Employers and employees each contribute 5% of wages (max THB 750).
Contributions are due monthly by the 15th.
8. Payroll Process
Monthly Tasks:
Calculate gross-to-net pay.
Withhold income tax and social security.
Submit P.N.D.1 and pay SSO contributions.
Deliver payslips securely.
Year-End Tasks:
File annual P.N.D.1 Kor.
Issue tax certificates.
Reconcile payroll records.
9. Common Mistakes to Avoid
Misclassifying tax residency can lead to penalties.
Ignoring allowances can result in tax issues.
Role/title mismatches can invalidate work authorization.
10. Best Practices
Maintain a compliance calendar for filings.
Utilize e-Filing and automate processes.
Match job titles in payroll with work permits.
Retain all payroll and visa documentation for audits.
Consider outsourcing payroll for expertise and efficiency.
Conclusion
Effectively managing payroll for foreign staff in Thailand requires careful coordination of HR, tax, and immigration processes. With proper documentation and consistent compliance, you can avoid costly errors and legal issues.
Stay up-to-date
Helpful Links
Opening a Corporate Bank Account in Thailand
Opening a Corporate Bank Account in Thailand
Certified English–Thai Translation & Legalization in Thailand
Certified English–Thai Translation & Legalization in Thailand
Thailand Trademark Registration
Thailand Trademark Registration
VAT Registration in Thailand
VAT Registration in Thailand
