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 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 Cabinet has recently approved in principle the Draft Ministerial Regulation under the Revenue Code Regarding Revenue Tax to increase the personal tax exemption amount on severance pay for terminated employees, aligning with the new maximum rate of severance pay. This change is intended to further ease the financial burden on terminated employees.

The Thai Revenue Department (TRD) issued the revenue ruling No. Gor Kor 0702/1112 on 21 February 2024 (“Ruling”) regarding tax treatment for the new merger scheme under section 1238 (2) of the Civil and Commercial Code. According to the Ruling, the merger would be considered as an entire business transfer and the tax considerations for the EBT should apply.

Asia Pacific tax authorities are actively seeking to reduce tax leakages, non-compliance, and what they perceive to be tax avoidance activities. To help you position your business for success in an era of ever-changing tax rules and intense scrutiny, our subject matter experts from across the region and globally will come together to examine key developments. We will discuss the impact of emerging trends and current issues on your business models and strategies, sharing practical tips on how you can maximize opportunities to achieve the best risk mitigation outcomes.

Request a copy For over 40 years, the team at Baker McKenzie, Bangkok has assisted foreign individuals and international companies who are seeking investment opportunities in Thailand. Doing Business in Thailand is your personal guide to the key aspects of Thai law that significantly affect the way business is conducted…

On 16 November 2018, the National Legislative Assembly (“NLA”) passed the Land and Building Tax Act (“Act”) after lengthy deliberation by the committees involved. It is expected that the Act will become effective once published in the Government Gazette, and tax collection under the Act will commence on 1 January…