In brief
The personal income tax exemption amount on severance pay for terminated employees is now increased, following the publishing of the relevant Ministerial Regulations in the Royal Gazette on 17 July 2024.
Further to our client alert on 26 June 2024, the Ministerial Regulations, Volume 394 (B.E. 2567), (2024) under the Revenue Code Regarding Revenue Tax Exemption (“Ministerial Regulation“) was published in the Royal Gazette on 17 July 2024 and has already entered into force from that date. As a result, the personal income tax exemption amount on severance pay for terminated employees is now increased to the employee’s last 400 days’ wages or THB 600,000, whichever is less. The new tax exemption shall be applicable to assessable income received from 1 January 2023.
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Related content:
Thailand: Adjusted tax exemptions for severance pay to be expected soon
Author
Nam-Ake Lekfuangfu
Nam-Ake Lekfuangfu is a partner of the Employment & Compensation Practice Group in Bangkok. He is experienced not only in employment laws but also, corporate and commercial law, mergers and acquisitions, environment and trade regulations. Over the past year, Nam-Ake was lead lawyer for a wide range of employment matters involving high profile clients. With his extensive legal knowledge, combined with insights on industrial knowledge and practices and Supreme Court rulings, Nam-Ake assists clients on employment and immigration works, ranging from day-to-day advice to complex matters, such as advising on employment trends impacting employers globally, including global mobility, the use of modern workforce and gender pay gap.
Author
Theeranit Pongpanarat
Theeranit joined Baker & McKenzie in 2013 and is now one of the key partners in the Corporate and M&A and Employment & Compensation Practice Groups in Bangkok. Theeranit has been involved in servicing a wide range of clients across industry sectors, recently focusing on the Healthcare & Life Sciences, Consumer Goods & Retail and Industrial Manufacturing and Transportation industry groups. He has been handling a number of high profile clients across a wide spectrum of corporate and commercial, with a particular focus on employment, immigration, work safety as well as merger and acquisition and post-acquisition integration advice. He has steadily earned trust and recognitions from a number of Baker & McKenzie key clients on his expertise in the Thai employment laws and regulations in particular, and for his proactive and responsive approach in handling clients' matters.
Theeranit was mentioned as one of experienced associates for Labour and Employment in Thailand by Legal 500 in 2019 and "Rising Star in Labour and Employment" by Legal 500 Asia Pacific 2022 and again 2023, in 2024 Theeranit was recognized as "Next Generation Partner" in 2024 and "Up and Coming for Employment" in Thailand by Chambers Asia-Pacific 2023.
