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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.
WHT also applies to interest and dividend payments.
Keywords: Mazars, Thailand, Tax, Withholding Tax, Revenue Department
3 August 2023
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:
- Expenses greater than 1,000 Baht; and
- Expenses less than 1,000 Baht for which a long term contract is in place (e.g. telephone)
However, 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 28th August 2018 to a supplier will require the WHT deducted to be paid to the RD by the 7th September 2018.
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 31 January 2024.
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.
Further sources of information
Please visit the Revenue Department website.
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Pongphan Narasin Director - Taxation Practice Bangkok
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