Income tax exemption severance payment

    

​The applicable tax law further grants an exemption from personal income tax for severance payments. On 17 July 2024, the authorities announced Ministerial Regulation No. 394 (B.E. 2567) (issued on 10 July 2024), and adjusted the income tax exemption.

    

​Old regulation	​New regulation
​Tax exemption for an amount equivalent to 300 days´wages Applicable cap: THB 300,000	​​Tax exemption for an amount equivalent to 400 days´wages Applicable cap: THB 600,000

     

The new regulation applies to income received from 1 January 2023 onwards. Taxpayers whose income tax on severance payments has been withheld during 2023 and tax was filed in 2024 may request a refund.