EMPLOYEE WELFARE POLICY TOWARD TAXATION PLANNING STRATEGIES IN THAILAND

Abstract

This paper proposes the new employee welfare policy under the so-called “Sufficient Employee Welfare” in which the employer, as a company, pays life insurance premium on behalf of employees. As such the life insurance would take responsibility in fund management on behalf of workers. This scheme is expected to be beneficial for all parties on ground that: [A] The life premium paid by employers be treated as tax deductible, and hence, tax liability of the employer companies would be reduced, [B] employees as a whole will benefit from having life insurance and social security and entitled to receive old-age pension after retirement, [C] the life premium be treated as employee’ benefit which is subjected to personal income tax and a substitute for reduction in corporate income tax. This research adopts the qualitative approach in compiling data and evidence to test the hypotheses as earlier stated. The results are summarized: (i) the tax burden for employer companies reduced by 15-20% whereas the personal tax revenue for the Revenue Department is anticipated to increase by 18.8%, (ii) from policy analysis perspective, it is desirable to propagate knowledge for public at large especially for political parties who may utilize an idea and proposes the sufficient employee scheme in practice. Keywords: Sufficiency Employee Welfare, CSR in Employee Welfare “Strategic Plan Taxation”, Flexibility Employment.