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:
- 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)
But no deduction is made for payments to non-taxpayers (e.g. the Government, BOI promoted company).
Common WHT deduction rates:
|Rental service fee||3%|
|Non-life insurance premiums||1%|
|Water and electricity||N/A|
|Public transportation / air tickets||N/A|
(*) 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.
|Service||Net||VAT Rate||VAT||Gross||WHT rate||Total WHT||Pay to supplier|
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.
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.