Can Employers Claim a Tax Deduction for Hiring People with Disabilities? Hiring vs. Fund Contributions
Yes. Companies that hire employees with disability ID cards can deduct an additional 100% of their wages (for a total deduction of twice the wages paid) when calculating corporate income tax under Royal Decree No. 499. This differs from a personal income tax allowance. Companies whose employees with disabilities account for more than 60% of their workforce for more than 180 days in the tax year qualify for a further deduction under Royal Decree No. 519.
Table of Contents:
- Can Employers Claim a Tax Deduction for Hiring People with Disabilities? Hiring vs. Fund Contributions
- What Tax Benefits Can Employers Claim for Hiring People with Disabilities?
- How Much Tax Can You Save by Hiring Two Employees with Disabilities? (Illustrative Example)
- How Much Must Employers Contribute to the Fund Under Section 34?
- Which Option Offers Better Value? Direct Hiring, Fund Contributions, or Section 35
- What Documents Do Employers Need to Claim the Tax Benefit?
- How Does the Personal Tax Allowance for Supporting a Person with a Disability Differ?
- Can Companies Claim a Tax Deduction for Hiring People with Disabilities?
- Frequently Asked Questions About Hiring People with Disabilities
What Tax Benefits Can Employers Claim for Hiring People with Disabilities?
Companies can claim two main benefits. Royal Decree No. 499 allows them to deduct twice the wages paid to employees with disabilities, and Royal Decree No. 519 provides a further deduction for businesses with a high proportion of employees with disabilities. Both benefits apply tocorporate income tax, separate from personal income tax.
|
Tax benefit |
Legislation |
Main eligibility requirements |
Wage deduction |
|
Additional 100% deduction |
Royal Decree No. 499 |
The employee holds a disability ID card and the company has paid the wages. |
Twice the wages (standard deduction plus an additional deduction of the same amount) |
|
Further deduction for a high proportion of employees with disabilities |
Royal Decree No. 519 |
Employees with disabilities make up more than 60% of the workforce and are employed for more than 180 days in the tax year. |
Three times the wages (one additional wage deduction on top of the benefit under Royal Decree No. 499) |
Deduct Twice the Wages Under Royal Decree No. 499
Wages paid to employees with disabilities are deductible as a regular business expense. Royal Decree No. 499 allows companies to deduct an additional 100% of those wages. Each baht paid in wages to an employee with a disability therefore reduces taxable net profit by two baht.
-
The employee must hold a disability ID card under the Persons with Disabilities Empowerment Act B.E. 2550 (2007).
-
The company must have paid the wages during the accounting period, kept proof of payment, and filed the required withholding tax returns.
-
Claim the benefit when filing Form P.N.D. 50 by entering the additional wage deduction under additional deductible expenses.
Further Deduction for Exceeding the 60% Threshold Under Royal Decree No. 519
Businesses that employ people with disabilities as more than 60% of their workforce for more than 180 days in the tax year can deduct another amount equal to the wages on top of the benefit under Royal Decree No. 499, bringing the total deduction to three times the wages. They need a certificate from the Ministry of Social Development and Human Security stating the total number of employees, the number of employees with disabilities, and how long they were employed. This benefit suits social enterprises and businesses that design roles in which people with disabilities make up a core part of the workforce. Companies hiring to meet the Section 33 quota generally rely on the benefit under Royal Decree No. 499.
How Much Tax Can You Save by Hiring Two Employees with Disabilities? (Illustrative Example)
If a company hires two employees with disabilities at THB 15,000 per month each, the double deduction saves it an additional THB 72,000 per year at a corporate income tax rate of20% (SMEs that pay tax at a lower rate will save less).
|
Item |
Calculation |
Amount (THB) |
|
Annual wages for employees with disabilities |
15,000 × 12 months × 2 employees |
360,000 |
|
Standard expense deduction |
Actual wages paid |
360,000 |
|
Additional deduction under Royal Decree No. 499 (100%) |
360,000 × 100% |
360,000 |
|
Total deductible amount |
Twice the wages |
720,000 |
|
Tax savings from the standard deduction |
360,000 × 20% |
72,000 |
|
Additional tax savings from the double deduction |
360,000 × 20% |
72,000 |
|
Total tax savings |
720,000 × 20% |
144,000 |
The double deduction brings the after-tax wage cost down to THB 216,000 (360,000 − 144,000), compared with THB 288,000 under the standard deduction alone.
How Much Must Employers Contribute to the Fund Under Section 34?
In 2026, companies must contribute THB 123,005 to the Fund for Empowerment of Persons with Disabilities for each person they fall short of their hiring quota, under Section 34 of the Persons with Disabilities Empowerment Act B.E. 2550 (2007).
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Hiring ratio under Section 33: Employers must hire one person with a disability for every 100 employees, plus one more if the remaining headcount exceeds 50.
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Headcount date: October 1 of the previous year
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Payment deadline: March 31 of the applicable year. For 2026, use the headcount as of October 1, 2025, and pay by March 31, 2026.
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Section 34 calculation: The lowest daily minimum wage nationwide (THB 337) × 365 days = THB 123,005 per person
|
Number of employees |
Number of people with disabilities to hire |
Annual fund contribution if no qualifying employees are hired (THB) |
|
1–99 |
0 |
0 |
|
100–150 |
1 |
123,005 |
|
151–250 |
2 |
246,010 |
|
251–350 |
3 |
369,015 |
|
351–450 |
4 |
492,020 |
|
451–500 |
5 |
615,025 |
Which Option Offers Better Value? Direct Hiring, Fund Contributions, or Section 35
On cost alone, contributing to the fund is slightly cheaper than hiring directly. If the company already needs to fill the roles, hiring people with disabilities offers greater value. The company fills the roles, can deduct twice the wages, and avoids the fund contribution. The figures below compare the options over one year for a company required to hire two people with disabilities.
|
Option |
Annual payment (THB) |
Tax treatment |
Net after-tax cost (THB) |
What the company receives |
|
Direct hiring (Section 33) |
378,000 (360,000 in wages plus 18,000 in employer Social Security contributions) |
Double deduction for wages and standard deduction for Social Security contributions |
230,400 |
Two employees working for the company |
|
Fund contribution (Section 34) |
246,010 |
Standard expense deduction |
196,808 |
Fulfills a legal obligation |
|
Concessions or service contracts (Section 35) |
Value of at least 246,010 |
Standard deduction based on the type of expense |
Depends on the Section 35 arrangement |
Goods or services from people with disabilities, or sales space made available to them |
What Options Are Available Under Section 35?
Companies that neither hire under Section 33 nor contribute under Section 34 can instead support people with disabilities through one of the options below. The value of the support must be at least equal to the required fund contribution. Companies must apply in advance at their provincial employment office or a Bangkok Employment Office (Areas 1–10). Applications for 2027 are open through December 31, 2026.
-
Grant concessions
-
Provide space to sell goods or services
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Subcontract work or services
-
Offer internships or provide equipment or facilities
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Provide sign language interpretation or other assistance
What Documents Do Employers Need to Claim the Tax Benefit?
Keep two types of records available for inspection throughout the statutory limitation period for the accounting period: proof of each employee's disability status and proof of wages paid.
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A copy of a valid disability ID card for each employee covered by the claim
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An employment contract showing the job title, wages, and start date
-
Proof of wage payments, such as payslips, payroll reports, and bank transfer records
-
Forms P.N.D. 1 and P.N.D. 1 Kor with matching employee names and wage amounts
-
Proof of Social Security contributions for employees with disabilities
-
Proof of annual disability employment reporting to the Department of Employment
-
A worksheet calculating the additional wage deduction, attached to Form P.N.D. 50. For the further deduction under Royal Decree No. 519, include a certificate from the Ministry of Social Development and Human Security.
WithHumanSoft Payroll Software, you can retrieve the payslips, payroll reports, and Forms P.N.D. 1 and P.N.D. 1 Kor listed in items 3–4 from one system.
How Does the Personal Tax Allowance for Supporting a Person with a Disability Differ?
The benefits apply to different taxpayers and taxes. Companies claim the disability employment deduction on their corporate income tax return (Form P.N.D. 50). Individuals who support a person with a disability claim the personal allowance on Form P.N.D. 90 or 91. The two benefits do not overlap.
|
Comparison |
Company employing people with disabilities |
Individual supporting a person with a disability |
|
Eligible taxpayer |
Company or juristic partnership |
An income earner who supports a person with a disability, such as a parent, spouse, child, or caregiver listed on the disability ID card |
|
Tax type |
Corporate income tax (Form P.N.D. 50) |
Personal income tax (Form P.N.D. 90 or 91) |
|
Tax benefit |
Deduct twice the wages as an expense |
THB 60,000 allowance for each person with a disability supported, provided that person's annual income does not exceed THB 30,000 |
|
Amount |
Based on actual wages paid, with no fixed cap |
Fixed amount per person with a disability |
|
Key documents |
Disability ID card and proof of wage payments |
Copy of the disability ID card and Form L.Y. 04 |
Employees with disabilities who are 65 or younger and earn income from work can claim a tax exemption on up to THB 190,000 of income. This exemption belongs to the employee and does not affect the company's double deduction.
Can Companies Claim a Tax Deduction for Hiring People with Disabilities?
Yes. Under Royal Decree No. 499, companies can deduct twice the wages paid to employees who hold disability ID cards. A further deduction applies under Royal Decree No. 519 if employees with disabilities make up more than 60% of the workforce for more than 180 days. Companies that do not hire must contribute THB 123,005 per person under Section 34 in 2026. The contribution costs slightly less than direct hiring on cost alone. If a company already needs to fill the role, hiring offers greater value because it fills the role, qualifies for the double wage deduction, and avoids the fund contribution.
Frequently Asked Questions About Hiring People with Disabilities
Can companies claim a larger deduction if they hire more people with disabilities than the legal quota requires?
Yes. The double deduction applies to wages paid to all eligible employees with disabilities, including those hired above the one-per-100 quota. The deduction increases with the actual wages paid.
Can employers claim the double deduction for part-time employees with disabilities?
Yes. Employers can deduct the wages actually paid if the employee has a disability ID card and an employment contract with the company. To count toward the Section 33 quota, the employment must also meet the duration and pay requirements in the ministerial regulation. Check with the Department of Employment before counting a part-time hire toward the quota in place of a fund contribution.
Are Section 34 fund contributions tax-deductible?
Yes. Because the company makes these payments as required by law, it can deduct them as a standard business expense. The double deduction applies to qualifying wages paid to employees with disabilities.
What happens if a company neither hires nor contributes to the fund?
The company must pay annual interest of 7.5% on the unpaid contribution from the due date. The Department of Empowerment of Persons with Disabilities can freeze or seize the employer's assets to recover the outstanding amount.
What should a company do if an employee with a disability resigns midyear?
If the resignation brings the company below the hiring quota, it must hire a replacement with a disability within 45 days of the resignation date. If the company does not hire a replacement, it must contribute to the fund for the days the position was unfilled. Interest may apply under the fund's rules.
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