The company’s director died (total working with Company 20 years) and the resolution shareholders meeting have approved to pay the compensation in amount of Baht 20 million to his family and heir to thank him for his work. The Company would like to inquire if that such compensation can be the taxable expenses or not?, and if it should deduct the withholding tax or not?
Panwa: Please note that as a fact, the payment of compensation to his family and heir did not include in the Company regulations and did not follow any law, so this compensation will be subjected as the personal and charm expenses, it can’t be the expense for income tax calculation according to the Revenue Code section no. 65 ter and such compensation is considered as the assessable income of the recipient according to Revenue Code section no. 39 and 40 (8) which it should include for personal income tax calculation according to Revenue Code section no. 48. Thus, we assist for the calculation of the personal income tax and other related taxes please click here.
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