Corporate Income Tax Reduction For Hiring Elders

Thai society is now in a transition era and 2017 will be the first year during which the elderly will be more numerous than the younger population. This situation is due to the rapid decline in both fertility and mortality of the Thai population.

In order to encourage the private sector for hiring elder people, the government has released exemption on revenue taxes No. 639 B.E. 2560. Tax exemption shall benefit employers, being a company or juristic partnership, which hires persons aged more than 60 years old. The wages paid to elder persons can be deducted as expenses in addition to the same type of expense totaling 100% but not exceeding 10% of their total employees. This tax benefit will be applicable for the accounting period beginning on or after 1st January 2016. The monthly wage of elder persons shall not exceed 15,000 Baht per person.

The elder person shall have the qualifications as follows:

1. Thai Nationality,

2. Being already employed by the company or juristic partnership,

3. Not being or never been director or shareholder of the company or juristic partnership hiring such elder person or of the associated company of such juristic partnership.

The Revenue Department is therefore encouraging the private sector to hire elder people as employees by doubling the expenses of wages paid theim.