January 2021 Thailand Tax Update

HLB Thailand Tax Team

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Below you will find a summary of recent tax developments in Thailand plus a reminder of key reporting dates for employers in the next few months.

Social Security Contribution rate reduced to 3%

To provide relief from the impact of the Covid-19 pandemic, monthly contribution rates have been reduced from 5% to 3% for employers and employees for 3 months from January to March 2021.

The monthly wage base for contributions ranges from Baht 1,650 to a maximum of Baht 15,000 for each employee. The maximum contribution is therefore reduced to Baht 450 per month (normally Baht 750) from January to March 2021 for employers and employees. 

Reminder – upcoming employer obligations 

Employers are reminded to request details of deductions and allowances for the 2021 year from their employees (Form Lor Yor 01) for the purpose of computing income tax to be withheld from salaries and wages during the 2021 year.

Upcoming deadlines for reporting income paid to employees in the 2020 year are:

2021 workers compensation – important dates

Employers will be required to pay workers compensation premiums and make wages declarations as usual this year.

No extension planned for filing personal income tax returns

The Thai Revenue Department has no plans at the moment to extend the filing deadline for personal income tax returns for the 2020 year, according to news reports. The Revenue Department extended the deadline last year by 5 months. It believes the recent Covid-19 outbreak in Thailand will be contained in 2-3 months.

Personal income tax returns are due for filing by 31 March 2021, extended to Thursday 8 April 2021 for returns filed electronically.

Unemployment benefits

Unemployment benefits due to force majeure caused by the pandemic have been revised with effect from 19 December 2020.

 

Any questions?

If you would like to know more about the topics covered above please contact:

Duangnetr Sarachai: [email protected]

Radapak Arthapridi: [email protected]

 

Duangnetr Sarachai

Principal, Tax & Legal Services

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