Withholding Tax Rate Reduced Update

On 30 March 2020, Ministerial Regulation Number 361 to reduce withholding tax rates on certain types of payments was published in the Government Gazette. The rates are the same as those approved by the Cabinet on 10 March 2020, which are as follows.

Keywords: Mazars, Thailand, Tax, Withholding Tax, Revenue Code, Personal income tax, Corporate income tax

1 April 2020

Payment period covered

Current rate

Reduced rate

Filing method

1 April 2020 – 30 September 2020

3% 

1.5% 

Any filing method

1 October 2020 – 31 December 2021

3% 

2% 

Only e-withholding tax filing

The reduced withholding tax rates shall apply to payments made by a company or legal partnership for the following:

Type of payment

Recipient

Assessable income under Section 40(2) of the Revenue Code, which is income from rendering services, such as brokerage fees or commissions

A company or legal partnership conducting business in Thailand, excluding:

  • foundations or associations conducting a revenue-producing activity; and
  • foundations or associations designated by the Minister under Section 47 (7) (b) of the Revenue Code.

Assessable income under Section 40(3) of the Revenue Code, which is goodwill, copyrights, or other rights

Assessable income under Section 40(6) of the Revenue Code, which is income from liberal arts professions, such as law, engineering, or architecture

A person liable to personal income tax or corporate income tax only if that person is domiciled in or a resident of Thailand or conducting business in Thailand, excluding:

  • foundations or associations conducting a revenue-producing activity; and
  • foundations or associations designated by the Minister under Section 47 (7) (b) of the Revenue Code.

Assessable income under Section 40(7) of the Revenue Code, which is income from a contract of work whereby the contractor provides essential materials besides tools

Assessable income under Section 40(8) of the Revenue Code, which is remuneration for hire of work, prizes, discounts, or other benefits due to sales promotions and other services, excluding the following:

  • remuneration for public entertainers
  • advertisement
  • premiums for non-life insurance
  • transport charges  

Source: Government Gazette 

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