Withholding Tax in Thailand

Withholding Tax ?

Withholding tax (“WHT”) is a deduction from payments made to suppliers who provide a service. Whether WHT is applicable and what rate to deduct depends on the nature of the service provided.

*****Remittances made to overseas suppliers may also incur a WHT deduction.Countries with a double tax treaty with Thailand have different applicable rates.

How to calculate Withholding Tax?

Withholding Tax does not apply to amounts less than THB 1000. However, you are required to deduct this Thai tax whatever the amount if you are linked by a long-term agreement to the service provider. Withholding tax therefore applies when you pay phone or internet bills of your company.

However, no deduction is made for payments to non-taxpayers (e.g. the Government)

Type of income                                                   Withholding Tax Rate

 

Services                                                                                             3%

Non-life insurance                                                                             1%

Software                                                                                             3%

Royalties in Thailand                                                                          3%

Royalties out of Thailand                                                                   15%

Office or Equipment rental                                                                 5%

Advertising                                                                                         2%

Dividends                                                                                           10%

***When calculating the amount to pay the WHT deduction is calculated net of VAT.

Submission to the Revenue Department

The WHT deducted is paid to the Revenue Department (“RD”) within the 7th day of the following month in which the payment was made. E.g. a payment made on 28th August 2017 to a supplier will require the WHT deducted to be paid to the RD by the 7th September 2017.

Late submission

The fine for late submission is:

  • 100 baht within the first 7 days

  • 200 baht after 7 days

An additional penalty of 1.5% of the outstanding amount calculated monthly.