New Thailand Personal Income Tax Exemption on Severance Pay 2024

The Ministerial Regulation No. 394 (B.E. 2567) under the Revenue Code of Thailand, published on 17 July 2024, increases the personal income tax exemption on statutory severance pay for terminated employees. 

AT A GLANCE

• A Ministerial Regulation issued under the Revenue Code of Thailand regarding revenue tax exemption and dated 10 July 2024, was published in the Royal Gazette on 17 July 2024 (Ministerial Regulation).   
  
  
• Under the Ministerial Regulation, the amount of the personal income tax exemption on statutory severance pay for a terminated employee is increased to an amount not exceeding the lower of the employee's wages for the last 400 days or THB600,000.
  
  
• This new exemption under the Ministerial Regulation does not apply to a severance payment made to an employee on retirement or on completion of a fixed-term employment contract. 
  
  
• The exemption applies to assessable income received from 1 January 2023.
  
  
• The new exemption is higher than the previous tax exemption which applied to an amount equal to the lower of the employee's wages for the last 300 days or THB300,000.