Employees with at least 120 days but less than one year of service are entitled to at least 30 days of severance pay. Severance pay for those who have been dismissed is tax exempt for funds covering up to 300 days but not exceeding 300,000 baht. Then, that person can deduct the remaining 130,000 baht at a rate of 50%, so only 65,000 is subject to a tax payment at a rate of 5%. In this scenario, the fired employee must pay 3,250 baht in taxes from the 500,000 severance payment. But those who voluntarily accept an early retirement package are subject to a personal income tax payment for the entire amount.

Source: Bangkok Post April 03, 2017 00:22 UTC