Tax payment on redundancy payout?

[chrisbinbkk99]

I was recently made redundant with 8 months plus plus package etc...

Does anyone know the laws on what tax I will have to pay on the redundancy money will it be the rate as my salary was?

Many thanks for your advice. .

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

[Thanyaburi Mac]

AmCit?? PAY!!

Mac

[fletchsmile]

You can elect to have it taxed as part of your salary at marginal rate or taxed separately.

Based on the fact you got 8 months, that suggests you've been with the employer for several years, so it is likely it would be in your interest to choose to have it taxed separately under the special provisions for redundancy, which will probably come out with a lower effective rate. Your HR department should be able to walk you thru.

Cheers

Fletch

[digitalchromakey]

Thai statutory redundancy pay is not liable to income tax, it is normally based on the PND 1 monthly salary.declared tax.

[fletchsmile]

Thai statutory redundancy pay is not liable to income tax, it is normally based on the PND 1 monthly salary.declared tax.

Sorry that's inaccurate. There are de minimis tax free levels, but above those it is taxable. The tax free is for most people usually only 300k in last 300 days

There is an option to have tax based on 1) monthly salary as you say or 2) taxed separately.

When I did this, at year end on completing my tax return, I completed a separate form to have the severance pay taxed separately. To have it taxed at the monthly salary rate would have been 37% for me, but was significantly less than that using the "separate basis".

The additional attachment form to go with the tax return is as attached. It takes a bit of working out but should help in estimating the amounts as to which basis is most tax efficient. For most it is tax separately. It also mentions the tax free and other allowances

Another word to OP, you may want to get someone to check your HR's calc. They had already deducted tax monthly based on a 12 month timeframe, and I left part year, which they didn't factor in. So at year end I submitted a claim for a refund plus this form.

Cheers

Fletch

[bkkfoxi]

thanks for your inputs as I understand up to 300K of the total pay off is tax free then 37% rule clicks on the rest but I will look at the PND90/91 option thanks Fletch