WITHHOLDING TAX IN THAILAND (“WHT”) 

Withholding Tax in Thailand is a deduction at sources from payments from clients to suppliers who is a service providers and also applicable to the payment of dividends and interests. When doing a payment, the recipient will receipt a WHT certificate from clients in order to justify the deduction. The tax withheld shall then be credited against tax liability of a taxpayer at the time of filing tax return. On the recipient point of view (the service provider), the deduction of the withholding tax constitutes a prepayment of its Corporate Income Tax, therefore it constitutes a tax credit of the Corporate Income tax payable the following year. The amount to pay the WHT deduction is calculated net of VAT.

Which Expense is Requirement for deduction on  Withholding Tax in Thailand ?

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)
Please be noted that there is no WHT deduction for payments to non-taxpayers (e.g. the Government, BOI promoted company).

Rate of Withholding in Thailand for Some Categories of Income

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	10%
Water and electricity ,Public transportation / air tickets, Life insurance	N/A

Tax Forms for Withholding Tax in Thailand for Submitting to 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 the forms of Withholding in Thailand 

SMEs need to pay the deducted WHT to the Revenue Department (“RD”) within the 7th day of the following month in which the payment was made. E.g the deducted WHT is needed to be paid to RD by 7 February 2018 for all the payment that paid to suppliers in January 2018.
The fine for late submission is100 baht within the first 7 days late and 200 baht after 7 days late. Also an additional penalty of 1.5% of the outstanding amount calculated monthly.

.For Further information : Please visit the Sherrings (Tax consulting) website.

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