Thailand Payroll Services
It is essential for international companies planning expansion into Thailand to have a clear plan to make the right moves from day one. This is vital for foreign companies establishing a presence and planning to run payroll in the Kingdom of Thailand, one of the most attractive destinations worldwide for foreign investment.
The southeast Asian nation developed into a social and economic success story in the early 21st Century, growing from a low-income to an upper-middle income economy in little more than a generation, and ranked Thailand 21st out of 190 nations according to the World Bank’s most recent ‘ease of doing business’ report.
Thailand has the eighth strongest economy in Asia – and in 2021 the Institute for Management Development (IMD) ranked Thailand 28th globally in its World Competitiveness Index. So, the potential is there to reward expansion, but expert guidance is necessary as provincial variations can influence how businesses are registered and operate.
Our Professional Employer Organization (PEO) and Employer of Record (EOR) platforms provide complete solutions to every issue your company will face before your planned move into Thailand’s economy.
Our teams step in from the start, locating top-rated talent in Thailand, then guiding you through such procedures and navigating the administration of their payroll system for you, including making the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities.
We remove the worry of complying with Thailand taxation, payroll, and employment laws to safeguard your international expansion plans. You may encounter some challenges regarding payroll but allow us to take the reins and answer any of your questions and concerns with our trusty guide on payroll for Thailand.
What Thai Payroll Options are available for Companies?
Remote payroll: This option allows businesses to operate under a single payroll system, by adding employees in Thailand to the parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
Internal payroll: You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Thailand. However, this does require hiring dedicated HR staff who understand Thailand’s employment and compliance laws.
Thailand payroll processing company: If you are considering outsourcing, then working with a Thailand payroll company will help in processing your payroll – but not when it comes to compliance.
Thailand payroll outsourcing: However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Thailand. We lift the administrative stress from your shoulders so you can focus on what you do best.
Thai Payroll Services
Companies moving into Thailand as a base for further expansion open up a wealth of opportunities throughout south-east Asia and Pacific Rim nations.
Challenges come alongside the potential benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes either at the federal level or in the relevant province – and Thailand has 77!
Non-resident businesses typically choose to open a limited liability company, which is incorporated under the Foreign Business Act after obtaining a Foreign Business License. US companies, however, do not need the license and are free of most of the restrictions imposed by the Act due to the US signing the Treaty of Amity with Thailand in 1966.
Taking this step before running payroll in Thailand requires an in-depth knowledge of company, tax, and employment law, and staying up to date with taxation rates.
However, there is an alternative and simpler route. Bradford Jacobs’ will navigate around these potential pitfalls effectively and efficiently. We recruit the staff in-country and then put into action our comprehensive knowledge of tax and payroll regulations. As part of our service, Bradford Jacobs files returns, and remits associated payments for tax and social security contributions directly from our payroll system to the relevant authorities.
Outsourcing your payroll in Thailand will streamline your operations by dealing with the following for your staff:
- Applying to the Revenue Department for a Tax Identification Number (TIN) for all foreign employees and those Thai employees who are not exempt through being registered for a national Personal Identification Number (PIN)
- Registration must be completed within 60 days of employees receiving first pay
- Registering Thai and foreign employees with the Social Security Office by submitting their Social Security Fund application within 30 days of starting work. Thais and foreign workers have the same benefits
- Withholding and remitting tax to the Revenue Department on form PND1
- Withholding and remitting contributions to the Social Security Office for the Provident Fund and the Workers’ Compensation Fund
- Taxes must be remitted by the 7th (manually) or 15th (online) following the salary month
- Employees must receive pay slips, hard copies or online, for each pay period
- Filing employees’ annual tax returns, PND 91
- Filing returns and due taxes by March 31 of the year following the tax year, which runs from January 1 to December 31
- Ensuring that employees who leave, inform local authorities with Forms PF and SS
- Payroll records must be kept for seven years
What is required to set up Thai Payroll?
Although non-resident foreign business is allowed to process payroll for the Thai citizens on their workforce, they generally choose to open a limited liability company as they can then operate payroll for non-Thais as well.
A limited liability company as a subsidiary is incorporated under the Foreign Business Act after obtaining a Foreign Business License. The company must also comply with Section 1096 of the Civil and Commercial Code. US companies, however, do not need the license and are free of most of the restrictions under the Act due to the US signing the Treaty of Amity with Thailand in 1966.
The company name must be reserved, and all required documents and the application lodged with the Department of Business Development (DBD).
Incorporation requires at least three individuals as promoters (or initial shareholders) all of whom must sign application documents. Other requirements include:
- Opening a head office in Thailand with a registration number (Tabien Ban)
- Providing a letter of consent from the landlord
- Memorandum of Association of the parent company
- Bank letter certifying sufficient funds in Thai shareholders’ personal bank accounts
- Legally, the three initial minimum shareholders must each have shares worth THB 5, giving total share capital of THB 15 (€0.40, US$0.45)
Non-restricted companies are generally expected to have registered capital of Thai baht (THB) 2,000,000 (€52,975, US$60,650) and restricted companies THB 3,000,000 (€79,470, US$90,980), to prove they have sufficient finances to operate the company. The figures are based on the predicted expenses of start-ups over the first three years of operation.