What Rate Do You Reimburse Your Employees For Kilometers/Mileage Driven?

[beechstreet]

I have an employee with a car that we occasionally send on errands to pick stuff up. I know in the US there is a standard rate published for mileage reimbursement. But wasn't sure if there was something similar in Thailand.

Based on some quick math I was thinking I would reimburse him 10 Baht per Kilometer (gas plus wear and tear). Does this seem high/low/reasonable to you guys?

[klubex99]

10 Baht a kilometer?

What is it... a Bentley??

I think 5 baht is generous. Most cars will do between 10 and 15 kilometers to the Liter. At say 10/Ltr it is about 3.5 baht per KM.

If it is diesel or LPG then 5 baht is very generous.

[mcyachty]

Hi Mate,

I get 5.50 Baht per kilometer. Any more and I then have to pay tax according to the company accountant at my work. Be careful if you pay more to be generous and the tax department might put their hand out too.

[temo1051]

I did some research on this a few months ago and found the range companies are paying to be 5 to 10 baht per km. Based on that I give my employees 8 baht per km.

My accountant told my employees the same thing about paying taxes on excess mileage reimbursement. My employees checked with accountants at other companies and got a different opinion. When my accountant was presented with this information they changed their view.

I guess accountants are like economists. You can find one to support any opinion.

[beechstreet]

Thanks guys for the feedback. I think I'll go with 8 Baht/Km...seems most fair. They don't drive that much it so won't hurt my overhead and should keep them happy.

[tombkk]

We pay THB 5/km. Never heard about any problems.