Withholding Tax in Thailand

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.
WHT also applies to interest and dividend payments.

Keywords: Mazars, Thailand, Tax, Withholding Tax, Revenue Department

07 August 2013

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

The following will require the deduction of WHT:

  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)

But no deduction is made for payments to non-taxpayers (e.g. the Government, BOI promoted company).

Common WHT deduction rates:

Service Rate (**)
Rent 5%
Rental service fee 3%
Parking 3%
Transportation (*) 1%
Telephone 3%
Advertising 2%
Non-life insurance premiums 1%
Professional fees 3%
Royalties 3%
Interest 1%
Dividends 10%
Prizes 5%
Water and electricity N/A
Public transportation / air tickets N/A
Life insurance N/A

 

Notes:

(*) Not including fare for public transportation.

(**) Rates are applicable for resident corporations and branches of foreign companies. For payments to individuals, associations and foundations or a foreign company with no permanent residence in Thailand different rates may apply.

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

For example:

Service Net VAT Rate VAT Gross WHT rate Total WHT Pay to supplier
Rent 125,000 7% 8,750 133,750 5% 6,250 127,500
Air ticket 67,000 0% - 67,000 0% - 67,000
Audit 300,000 0% - 300,000 3% 9,000 291,000
  15,250 485,500

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 27th June 2009 to a supplier will require the WHT deducted to be paid to the RD by the 7th August 2013.

The Revenue Department has announced that companies registered for e-filing with have an extra eight days to file all tax returns. This incentive will run until January 2014.

Late submission

The surcharge 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.

Further sources of information

Please visit the Revenue Department website.

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Damian Norris
+66 2 670 1100
Damian Norris Director - International Tax Advisory - Bangkok Send a message Detailed profile
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