What is the current VAT rate in Thailand?

The current VAT rate in Thailand is 7%, temporarily reduced from the statutory rate of 10% since 1997. This reduced rate is extended until September 30, 2025.

Who must register for VAT in Thailand?

Any person or entity supplying goods or services in Thailand with annual turnover exceeding THB 1.8 million must register for VAT within 30 days of reaching this threshold. Companies hiring foreign employees must also register.

Can I register for VAT voluntarily if my turnover is below 1.8 million baht?

Yes. Businesses may voluntarily register for VAT, allowing them to issue tax invoices and claim input VAT credits on business expenses.

What is the 13-digit Tax ID Number (TIN)?

A Tax ID Number (TIN) is a unique 13-digit number identifying a person or entity for VAT and tax purposes in Thailand. It can be verified on the Revenue Department’s website.

What transactions qualify for 0% VAT rate?

Eligible zero-rated transactions include export of goods, services performed in Thailand but used entirely abroad, international transportation, goods and services supplied under foreign aid programs, and supplies to the United Nations and recognized international organizations.

How do I claim the 0% VAT rate?

Companies must provide documentation proving payment from outside Thailand. Acceptable documents include telegraphic transfers, Letters of Credit, official receipts showing foreign payment, credit card records from foreign sources, and shipment proofs for exported goods.

What’s the difference between 0% VAT and VAT exemption?

Zero-rated transactions are subject to VAT at a 0% rate and allow input VAT claims. VAT-exempt transactions are completely outside the VAT system and do not permit input VAT credits.

Where do I submit my VAT registration application?

Applications must be submitted to the Area Revenue Offices in Bangkok, or the Area Revenue Branch Offices in other provinces.

What documents are required for VAT registration?

Required documents include a business registration certificate, director identification and signatures, proof of registered address, financial projections, and a completed VAT registration form (PP.01).

How long does VAT registration take?

VAT registration typically takes 4–6 days, including document collection, preparation, signing, and filing with the Revenue Department.

How often must I file VAT returns?

VAT returns are filed monthly. Returns must be submitted within 15 days of the following month.

What are the penalties for late VAT filing?

Penalties include fines of THB 300 within the first seven days of delay, THB 500 afterward, possible penalties up to 200% of due taxes, and a 1.5% monthly surcharge.

Do I need to file returns for zero-rated transactions?

Yes. VAT-registered companies must file monthly returns even for zero-rated transactions and maintain supporting documentation.

Do foreign companies need to register for VAT in Thailand?

Foreign companies providing digital services to non-VAT registered customers in Thailand must register if their income exceeds THB 1.8 million annually. Non-resident businesses delivering goods, installing/assembling imports, or exporting goods must also register.

What about B2B digital services to Thai businesses?

These are subject to reverse charge, meaning the Thai business customer accounts for the VAT instead of the foreign seller.

Can foreign companies get temporary VAT registration?

Yes. Non-resident companies may register for a temporary VAT number under Section 82/3 without forming a local entity, valid for 12 months and up to three years.

Which goods and services are completely exempt from VAT?

Exemptions include groceries, medical services, educational services, rental of immovable property, land transportation, religious and charitable services, certain professional services, and cultural services.

Are there any special exemptions for exporters?

Exports of goods and services generally qualify for VAT exemptions if exporters comply with documentation and customs procedures.

Can I claim input VAT refunds?

Yes. If input tax exceeds output tax, businesses can claim refunds in cash or tax credits.

How long can I carry forward unused input VAT?

Unused input VAT can be carried forward for up to six months.

Will requesting a VAT refund trigger an audit?

Requesting VAT refunds typically triggers a Revenue Department audit. Proper documentation is required before applying.

What records must I maintain?

VAT-registered businesses must keep records of sales and purchases for five years and provide them when requested by the Revenue Department.

What should I know about tax invoices?

Tax invoices must detail goods or services supplied, VAT amount, supplier information, and the date. They allow buyers to claim input VAT.

What happens if I can’t provide supporting documentation for 0% VAT?

If supporting documents cannot be provided, zero-rated transactions may be reclassified and taxed at the standard 7% VAT rate.

Thailand’s New Social Security Contribution Changes for 2026

TL;DR From 1 January 2026, Thailand will increase the Social Security Fund (SSF) wage ceiling and raising the maximum monthly contribution from THB 750 to THB 875 per party. While the contribution rate remains at 5% for both employers and employees, higher wage ceilings through to 2032 will increase payroll costs but also improve employee benefit entitlements. Employers should update payroll systems and prepare early to stay compliant.

Introduction

Thailand has just introduced a significant update to its social security system, with changes to how social security contributions are calculated set to take effect from 1 January 2026.

The Cabinet has approved a revised Social Security Fund (SSF) wage ceiling that increases the maximum wage used to calculate contributions under Section 33 of the Social Security Act, from 15,000 THB to 17,500 THB.

These changes affect both employers and employees by updating payroll requirements and also improving benefit entitlements. For foreign investors and businesses operating in Thailand, understanding and preparing for these updates is important as the new changes come into effect in only a few weeks.

Key Points

Thailand will increase the Social Security Fund (SSF) wage ceiling in stages starting 1 January 2026.
The contribution rate remains unchanged at 5% for employers and 5% for employees, but the salary base used for calculations will rise over time.
The wage ceiling will increase from THB 15,000 to THB 17,500 in 2026, with further increases through 2032.
Employees will see slightly higher deductions, but this will result in improved benefit entitlements.
The minimum contribution base remains unchanged at THB 1,650.
Early preparation is recommended for employers as the updates come into effect very soon.

What are the New Changes to Social Security Contributions in 2026?

Thailand’s social security framework will undergo a significant change in 2026 following Cabinet approval of a ministerial regulation that updates how Social Security Fund (SSF) contributions are calculated for employees.

The regulation, approved in early December 2025, introduces a gradual adjustment to the contribution wage ceiling starting 1 January 2026, while the existing minimum contribution base remains unchanged.

The main adjustment is an increase in the maximum wage ceiling used to calculate social security contributions. While the contribution rate remains at 5% for employers and 5% for employees, the wage base on which this percentage is applied will increase over time.

Currently, the contribution ceiling was capped at THB 15,000 per month, meaning the maximum contributions for any employee was limited to THB 750 for both the employee and employer (THB 1,500 total).

Under the new rules, the ceiling will be progressively increased to THB 17,500 starting in January 2026. The ceiling will eventually increase to THB 23,000 from 2032. The increases in the wage ceiling will be introduced through three-phases:

Phase	Wage Ceiling	Max Contribution per Party	Total Contribution
2026–2028	THB 17,500	THB 875	THB 1,750
2029–2031	THB 20,000	THB 1,000	THB 2,000
2032 onward	THB 23,000	THB 1,150	THB 2,300

The minimum contribution requirement has not changed and remains at THB 1,650 per month.

Why Have the Changes To Thailand’s Social Security Rates Been Introduced?

Thailand’s labour market has changed considerably since the current wage ceiling was introduced. Rising living costs and higher median salaries across many sectors mean that the fixed THB 15,000 contribution base no longer reflects today’s prevailing wage levels.

The reform is designed to respond to several objectives. One of the main aims is to match social security contributions more closely to employees’ actual salaries, so that future benefits are based on what people really earn.

Second, the changes are intended to support the long-term sustainability of the Social Security Fund. This is becoming increasingly important as Thailand is facing an ageing population and therefore increased pressure is being placed on the welfare systems.

Finally, the revised structure moves Thailand closer to international standards on the adequacy of social protection benefits.

How Will These Changes Impact Employers?

For employers, the most immediate and noticeable impact will be an increase in monthly Social security contributions, increasing from 750 THB to 875 THB.

Example:

For employees earning above the applicable wage ceiling (currently THB 15,000 per month, increasing to THB 17,500):

Before 2026: employer paid THB 750
2026–2028: employer pays THB 875
2029–2031: employer pays THB 1,000
2032 onward: employer pays THB 1,150

Despite the increase in the Social Security contribution rate, Thailand remains a highly competitive location for hiring staff. The total social security cost for an employer is subject to a maximum cap, which means companies will always know how much they will be required to contribute.

This maximum contribution, which for an employee will increase to THB 875 per employee per month and will be fixed at this rate until at least 2030, offering a very affordable rate compared to other locations where social security contributions are much higher.

The capped contribution rate also helps maintain a stable and relatively low social tax burden for employers, supporting Thailand’s competitive employment environment.

What Should Employers Do?

In order to be ready for the increase in the Social Security contributions, companies and their accountants should take several steps in preparation. Payroll systems will need to be updated to reflect the new wage ceilings, and staff should be trained on the revised calculation and reporting requirements.

It is also important to clearly update any employees so they understand how the adjustments may affect their deductions and when they will start.

With the new rules taking effect in January 2026, early preparation is highly recommended. For more information about the new social security changes or how assistance in relation to how your company can properly prepare, please feel free to reach out to our accounting team.

What is the Impact on Employees?

Employees earning above the old THB 15,000 ceiling will see increased monthly contributions starting in 2026. While this reduces take-home pay slightly, it also means higher benefit entitlements.

Enhanced Benefits

Many Social Security benefits are calculated based on the insured salary. As the wage ceiling increases, this may result in higher benefit payments in areas such as:

Sickness and disability compensation
Unemployment benefits
Maternity grants
Death compensation
Old age pensions

For example, under Phase 1 (2026–2028), sickness and disability benefits will increase proportionate to the new wage ceiling.

If you would like help updating your payroll systems or assessing the financial impact of these changes, contact us for more information.

Disclaimer

This information is provided for general informational purposes only and is not legal, tax, or financial advice.

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Thailand’s New Social Security Contribution Changes for 2026