Key update on the Employees Welfare Fund (EWF), a new mandatory pension fund scheme of the Department of Labor Protection and Welfare initially scheduled to take effect on October 1, 2025, has been postponed to October 1, 2026.
All employers must be prepared, whether your employee is a local hire or a globally mobile employee, since it may impact
from the duplication of pension plans in the home and host countries.
[Refer to this link for further details.]
The extension of time will allow companies to cope with the additional compliance, specifically, deciding on whether to enroll in the EWF, Thai provident fund, or consideration for other options. Feel free to reach out as we are more than happy to assist you in this area.
In addition, the newly approved tax deduction allowances for individual taxpayers can be found below.
Key Updates
| No. | Key Details |
| 1. | EWF postponement
New effective date: October 1, 2026 onwards Implementation of the mandatory Thai pension plan, Employee Welfare Fund (EWF) has been postponed by one year. Contributions: For both employee and employer 0.25% of wages (From October 1, 2026 – September 30, 2031) 0.50% of wages (From October 1, 2031 onwards) |
| 2. | Exemption of personal income tax on digital asset gains
Effective period: January 1, 2025 – December 31, 2029 Capital gains from the sale of digital assets (e.g., cryptocurrencies, tokens) are exempt from personal income tax if transacted via Thai-licensed exchanges, brokers, or dealers. |
| 3. | Tax incentives to promote art purchases & support artists
Effective period: – Art purchases: January 1, 2025 – December 31, 2027 – Increased artist expense deduction: From January 1, 2025 onwards Personal income tax relief: 1) Taxpayers can deduct up to THB 100,000 per year for artwork purchases from qualified artists or authorized sellers, with full tax invoices required. 2) Artists with income under Section 40(6) can claim a 60% standard lumpsum expense deduction, up from 30%, permanently from tax year 2025 onwards. |
| 4. | E-donation system for tax-deductible donations
Effective period: From January 1, 2026 onwards All tax-deductible donations must be processed via the e-Donation system and made to registered charitable entities (e.g., temples, foundations, associations, government-recognized funds). Hard copy donation receipts will no longer be considered tax-deductible donations. Donation recipients must be registered in the e-Donation system before the effective date. |
With this information, employers and individual taxpayers can plan accordingly to optimize their pension plans and tax positions.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Jiraporn Chongkamanont
Partner
Natchanond Charoenmechaikul
Senior Manager
Apaporn Trakarnratti
Manager
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