WITHHOLDING TAX IN THAILAND (“WHT”) 

Withholding tax in Thailand is deducted directly from payments made by clients to service providers and also applies to payments like dividends and interest. When making a payment, clients issue a WHT certificate to the recipient to justify the deduction. Consequently, the tax withheld is credited against the taxpayer’s liability when they file their tax return. From the service provider’s viewpoint, the WHT deduction acts as a prepayment for corporate income tax, creating a tax credit for the next year’s corporate tax. Moreover, the WHT deduction amount is calculated net of VAT. Click here for example for calculation 

Expenses Required for Withholding Tax Deduction

1. Expenses greater than 1,000 Baht; and
2. Expenses less than 1,000 Baht for which a long term contract is in place (e.g. telephone and internet expenses)
However, there is no WHT deduction for payments to non-taxpayers (such as the government or a BOI-promoted company).

Withholding Tax Rate

Service	Rate (**)
Transportation cost for commercial (*),Non-life insurance premiums ,Interest, Ship and charges	1%
Advertising	2%
Rental service fee ,Telephone, Royalties, Parking, Service and Professional fees, Commission, Promotional campaign	3%
Rent, Prizes, Production service charge	5%
Dividends / Share of profit income	10%
Water and electricity, Public transportation / air tickets, Life insurance	N/A

.For further information on withholding tax rates for royalties and interest, please visit the Revenue Department website.

Main Withholding Tax Forms in Thailand for Submission to the Revenue Department

• Por.Ngor.Dor.1 is withholding tax from employment income. It shows the salary, wage and profit which the company has to pay for employees each month. (Form Por.Ngor.Dor.1 ) (Free download for translation purpose only)

• Por.Ngor.Dor. 3 is a withholding tax for certain categories of income between the juristic person and natural person.(Form Por.Ngor.Dor.3) (Free download for translation purpose only)

• Por.Ngor.Dor.53 is a withholding tax for the income between a contact between juristic person and juristic person. .(Form Por.Ngor.Dor.53) (Free download for translation purpose only)

Submission deadline for Thai withholding forms

Within the 7th day of the month after payment, SMEs must pay the Revenue Department (“RD”) the deducted WHT. The deducted WHT must be paid to RD by 7 February 2018 for all January 2018 supplier payments.

Penalty and Surcharge

The fine for late submission is 100 baht for the first 7 days and 200 baht for each additional 7 days. An additional penalty of 1.5% of the outstanding amount is calculated monthly.

BAck to Home