January 2021 Thailand Tax Update
HLB Thailand Tax Team
Below you will find a summary of recent tax developments in Thailand plus a reminder of key reporting dates for employers in the next few months.
Social Security Contribution rate reduced to 3%
To provide relief from the impact of the Covid-19 pandemic, monthly contribution rates have been reduced from 5% to 3% for employers and employees for 3 months from January to March 2021.
The monthly wage base for contributions ranges from Baht 1,650 to a maximum of Baht 15,000 for each employee. The maximum contribution is therefore reduced to Baht 450 per month (normally Baht 750) from January to March 2021 for employers and employees.
Reminder – upcoming employer obligations
Employers are reminded to request details of deductions and allowances for the 2021 year from their employees (Form Lor Yor 01) for the purpose of computing income tax to be withheld from salaries and wages during the 2021 year.
Upcoming deadlines for reporting income paid to employees in the 2020 year are:
| Matter | Due date |
|---|---|
| Issuance of WHT certificates to employees for the 2020 year | By Monday 15 February 2021 |
| Filing of PND 1 Gor for the year ended 31 December 2020 to report income paid under Sections 40 (1) and (2) of the Revenue Code | By Monday 1 March 2021 |
2021 workers compensation – important dates
Employers will be required to pay workers compensation premiums and make wages declarations as usual this year.
| Form | Due date |
|---|---|
| Form Gor Thor 26 Gor — notice of assessment for 2021 year | 31 January 2021 |
| Form Gor Thor 20 Gor — declaration of wages for the 2020 year | Within February 2021 |
| Form Gor Thor 25 Kor — notice of balance payable/ refundable in respect of the 2020 year based on wages declared in Form Gor Thor 20 Gor | 31 March 2021 |
No extension planned for filing personal income tax returns
The Thai Revenue Department has no plans at the moment to extend the filing deadline for personal income tax returns for the 2020 year, according to news reports. The Revenue Department extended the deadline last year by 5 months. It believes the recent Covid-19 outbreak in Thailand will be contained in 2-3 months.
Personal income tax returns are due for filing by 31 March 2021, extended to Thursday 8 April 2021 for returns filed electronically.
Unemployment benefits
Unemployment benefits due to force majeure caused by the pandemic have been revised with effect from 19 December 2020.
| Matter | Old law | New law |
|---|---|---|
| Effective date | 1 March 2020 - 31 August 2020 | 19 December 2020 onwards |
| Definition of "Force Majeure" | Force Majeure means COVID-19 pandemic or dangerous communicable diseases under the communicable disease law that affects the public and the insured person is unable to work or the employer is unable to carry on business as normal. | Force Majeure means dangerous communicable diseases under the communicable disease law that affects the public and the insured person is unable to work or the employer is unable to carry on business as normal. |
| Eligibility for unemployment benefits | The insured person who is unable to work or the employer does not allow him/her to work due to the employee's quarantine or in case the employer temporarily ceases business operations wholly or partly by themselves or by government order to prevent dangerous communicable diseases under the communicable disease law or laws on public administration in emergency situations. | The insured person who is unable to work or the employer does not allow him/her to work due to the employee's quarantine or in case the employer temporarily ceases business operations, wholly or partly, due to the government order to prevent dangerous communicable diseases under the communicable disease law. |
| Unemployment benefits | The insured person is entitled to receive the unemployment benefits at a rate of 62 percent of daily wages 1, not exceeding 90 days. | The insured person is entitled to receive the unemployment benefits at a rate of 50 percent of daily wages 1, not exceeding 90 days. |
- Ceiling of Baht 15,000 a month
Any questions?
If you would like to know more about the topics covered above please contact:
Duangnetr Sarachai: [email protected]
Radapak Arthapridi: [email protected]
