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.