In case our company must lay-off employee and will pay them the severance according to the labor law, are there are any exemptions on personal income tax calculation?
Panwa: The regulations for tax exemption in case of paying severance pay are as below:
1) It shall be the severance pay that employer pay due to lay-off (but not in the case of lay-off/termination due to expiration of the term of employment according to the agreement).
2) There is tax exemption of the severance pays specifically the amount of wage/salary for the last 300 working days but not exceed 300,000 Baht only.
Anyways, if you would need further assistance for personal income tax calculation and payroll services, kindly note that we could assist for such click here.
For more information, please feel free to contact us:
Phone: +66 2 933 9000
Fax: +66 2 933 6120