Thai payroll requires employers to withhold personal income tax (PIT) from employee salaries under the PND 1 system, remitted monthly to the Revenue Department by the 7th (paper) or 15th (e-filing) of the following month, and to withhold and match Social Security Fund contributions (5% employee, 5% employer, on a capped salary base — see Social Security topic) also remitted monthly. Employers issue an annual wage certificate (50 Tawi) to each employee, needed for that employee's personal tax return, and file an annual summary (PND 1 Kor) with the Revenue Department. Many small and mid-sized foreign-owned businesses outsource payroll to local accounting firms given the monthly filing cadence and the compliance risk of errors.
Thailand's monthly PND 1 withholding and Social Security filing cadence, plus the annual PND 1 Kor summary, create a compliance rhythm that catches many first-time foreign employers off guard if payroll isn't set up correctly from day one.
Key Facts
Monthly PIT withholding (PND 1) must be remitted to the Revenue Department by the 7th of the following month (paper) or the 15th (e-filing).
Social Security contributions (5% employee + 5% employer, capped monthly base) are withheld and remitted monthly alongside payroll processing.
Employers must issue an annual wage certificate (50 Tawi) to each employee for their personal tax filing.
An annual summary return (PND 1 Kor) consolidating the year's withholding must be filed with the Revenue Department.
Many foreign-owned SMEs outsource payroll to local Thai accounting firms due to the monthly compliance cadence and language/filing complexity.
Steps
Calculate monthly withholding — Compute PIT withholding per employee based on progressive rates and applicable allowances.
Remit PND 1 and Social Security contributions — File and pay monthly withholding tax and Social Security contributions by their respective deadlines.
Issue annual wage certificates — Provide each employee a 50 Tawi certificate for their personal income tax filing.
File the annual PND 1 Kor summary — Submit the annual reconciliation return to the Revenue Department.
Timelines
Monthly PND 1 filing (paper): by the 7th of the following month
Monthly PND 1 filing (e-filing): by the 15th of the following month
Required Documents
Employee tax IDs and personal details
Monthly PND 1 filings
Annual wage certificates (50 Tawi)
Annual PND 1 Kor summary return
Common Mistakes
Missing the monthly PND 1 withholding deadline, which triggers penalties and interest.
Not issuing 50 Tawi certificates to employees in time for their own annual PIT filing deadline.
Underestimating the administrative burden of monthly payroll compliance and not budgeting for a local accounting firm or payroll software.