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ResourcesCorporate and Tax AdvisoryThailand Tax LawThailand Tax Forms: Form PND 1 for Tax Withholding from Salaries

Thailand Tax Forms: Form PND 1 for Tax Withholding from Salaries

Transcript of the above video:

As the title of this video suggests, we had discussing Thailand tax forms. To preface this video, I am an American attorney; I am not a Thai attorney. I deal with corporate matters pertaining to the US-Thai Treaty of Amity quite frequently and I am the Managing Director of a law firm. We also have an accounting component, a separate division in our firm that deals with accounting matters. However none of the accountants want to come and do a video with me so I am going to go ahead and just do a brief overview of this video in order to just kind of give an overview of what this form the PND 1 actually is.

This is a form you are going to see come up quite frequently in the context of a foreigner doing business here in the Kingdom. That is because this is a form for withholding of payroll. it is basically withholding on payroll form here in the Kingdom and those who are working in the Kingdom that are foreigners have to have a work permit under a company here in Thailand and that basically, for lack of a better word in and of itself, requires that the individual be getting paid the statutorily required minimum, usually Bt. 50,000 per month and that they go ahead and have their withholding tax withheld from their pay pursuant to Thai  Law. That is also the case for staff of various companies so for example the 4 Thai employees that are needed in order to support a work permit application for a corporation here in the Kingdom, you are going to need to go ahead and deal with the PND 1 for those Thai employees as well possibly depending on the circumstances of a given case. 

But that being said this is a frequent form that is going to be dealt with generally on a monthly basis when you are maintaining a Thai company, especially a Thai company that is maintaining a work permit or multiple work permits here in the Kingdom so I just wanted to kind of go ahead and provide this as an overview.  We will go ahead and slap it up on the screen for you so you can have a look at it but basically you have got to deal with this and like I said, it is usually on a monthly basis and again we have Thai accountants that assist our attorneys in going ahead and filing these kind of forms but the important thing to think about with respect to these,  like with many of the Thai tax forms, especially for foreigners, there is an immigration and work permit component associated with these Thai tax matters because failure to go ahead and pay ones for example payroll taxes in a timely manner and on a regular basis could result in not renewing visas not renewing visas renewing work permits because that documentation cannot be produced for the immigration officer or the labor department official who is going to go ahead and essentially sort of auditing the company on a yearly basis to go ahead and make sure if business visas should be reissued or work permits should be reissued with respect to the company. So although it is strictly speaking a tax and accounting matter it does have sort of reverberations in a labor and an immigration context down the road.