Withholding Tax in Thailand - Mazars - Thailand
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.
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:
| Service | Rate (**) |
| Rent (includes both commercial and private property and moveable equipment) | 5% |
| Service fee | 3% |
| Hire of work | 3% |
| Parking | 3% |
| Transportation (*) | 1% |
|
Telephone - rental - service fee |
5% 3% |
| Advertising | 2% |
| Non-life insurance premiums | 1% |
| Professional fees | 3% |
| Royalties | 3% |
| Interest | 1% |
| Dividends | 10% |
| Prizes | 5% |
| Software | 3% |
| Water and electricity | N/A |
| Life insurance | N/A |
| Public transportation / air tickets | N/A |
Note:
(*) Not including fare for public transportation.
Applies to both local and international transportation service. For example DHL or UPS but excludes Federal Express which requires no deduction.
(**) 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 | Gross | WHT rate | Total WHT | Pay to supplier |
| Equipment rent | 12,500 | 875 | 13,375 | 5% | 625 | 12,750 |
| House rent | 50,000 | - | 50,000 | 5% | 2,500 | 47,500 |
| Air ticket | 67,000 | - | 67,000 | 0% | - | 67,000 |
| Audit | 80,000 | - | 80,000 | 3% | 2,400 | 77,600 |
| Telephone rent fee | 1,000 | 70 | 1,070 | 5% | 50 | 1,020 |
| Telephone service fee | 3,500 | 245 | ,3,745 | 3% | 105 | 3,640 |
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 July 2009.
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.
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