Running a Company in Thailand: Can I Pay Myself a Salary?
When you establish a company in Thailand, one of the first questions many business owners ask is: “Can I pay myself a salary?” The short answer is yes — but there are important legal, tax, and compliance issues you need to understand before you transfer money from your company’s bank account into your own.
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Paying Yourself as a Company Director or Shareholder
In Thailand, company owners often wear more than one hat: you may be both a shareholder (owning part of the company) and a director (responsible for managing operations).
Shareholder: earns income through dividends when the company distributes profits.
Director/Employee: can receive a salary just like any other employee, provided it’s properly recorded in payroll.
If you want to pay yourself a monthly salary, you must set yourself up as an employee of the company, comply with tax withholding rules, and submit payroll reports.
Tax Implications
Personal Income Tax (PIT):
Your salary will be subject to progressive personal income tax rates in Thailand (0–35%). The company must withhold the correct amount of tax each month (ภ.ง.ด. 1) and submit it to the Revenue Department.Social Security Contributions:
If you are listed as a salaried employee, you also need to be registered with the Social Security Fund. Both the company and you (the director/employee) must contribute monthly.Corporate Tax Deduction:
The company can deduct your salary as a business expense, lowering its corporate income tax burden. However, the salary must be reasonable and aligned with the scope of your work.
Salary vs. Dividends
| Feature | Salary | Dividends |
|---|---|---|
| When it’s paid | Paid monthly | Only when there are distributable profits and formally declared |
| Tax at recipient | Subject to Personal Income Tax (progressive rates) | Subject to 10% withholding tax at source |
| Social security | ✅ Employee & employer contributions apply | ❌ No social security obligations |
| Deductible for company | ✅ Yes — treated as a payroll expense | ❌ No — not deductible |
| Income stability | Provides consistent monthly income | Irregular; depends on profits & approvals |
Best Practices
Document everything: Make sure your salary is clearly approved in company meeting minutes and reflected in payroll records.
Stay compliant with filings: Submit monthly withholding tax (ภ.ง.ด. 1) and social security reports on time.
Seek professional advice: Salary and dividend planning can help minimize your total tax burden while keeping your company fully compliant.
Yes, you can pay yourself a salary when running a company in Thailand. But whether you should take income as salary, dividends, or a mix of both depends on your business structure, tax situation, and visa requirements. By setting things up correctly, you’ll not only stay compliant with Thai regulations but also make the most of the available tax benefits.
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