What is PND1 (employer withholding on salary)?

PND1 is the withholding tax return for salary, wages, or other benefits an employer pays employees under Section 40(1) of the Revenue Code. Employers calculate the tax to withhold from each month's salary using the progressive personal income tax rates, then remit it to the Revenue Department by the 7th of the following month. PND1A is the annual summary employers must file by February of the following year, covering income and tax withheld for every employee for the whole year — including employees whose income falls below the taxable threshold, who still must be listed on PND1A even with no tax withheld. The key difference between PND1 and PND3 is the income type. PND1 applies only to income from an employment contract — salary, bonus, overtime. PND3 applies to other income paid to individuals who are not regular employees, such as freelance or service fees. Calculating salary withholding requires each employee's personal deduction details — marital status, children, life insurance, provident fund contributions — which involves more detail than a standard withholding calculation. This work typically sits with HR or an accountant handling payroll directly. This page is written to help business owners who are starting to hire employees understand PND1 and PND1A at a high level. MooMooNext does not calculate payroll or file employee withholding tax on a business's behalf. Businesses paying salaries should use separate payroll software or have an accountant/HR team handle this directly. What MooMooNext can help with is organizing related expense data — such as freelance or contractor payments that require PND3 instead, a separate form from PND1. Personal income tax rates and thresholds change, so check current figures at rd.go.th before calculating.