Withholding Tax

Withholding Tax

Withholding Tax (commonly written “WHT”) consists in deducting a tax from payments done to service suppliers. This tax is also applicable to the payment of dividends and interests. When doing a payment, a withholding tax certificate must be provided to the recipient in order to justify the deduction. On the recipient point of view (the service provider), the deduction of the withholding tax constitutes a prepayment of its Corporate Income Tax. Each amount of Withholding Tax deducted therefore constitutes a tax credit of the Corporate Income tax payable the following year. Thus, if you are a service provider, consider that your clients will pay your Corporate Income Tax on your behalf.

Withholding Tax in Thailand

How to calculate Withholding Tax?

Withholding Tax does not apply to amounts less than THB 1000. However, you are required to deduct this Thai tax whatever the amount if you are linked by a long-term agreement to the service provider. Withholding tax therefore applies when you pay phone or internet bills of your company.

Deadlines

Payment must be done on the 7th following the month during which the payment has been done.

Fines and penalties for last submission:

  • Fines: 1.5 % of the payable amount per month
  • Penalties: 100 THB before seven days / 200 THB after seven days.
Type of incomeWithholding Tax Rate (1)
Services3%
Non-life insurance1%
Software3%
Royalties in Thailand3%
Royalties out of Thailand15%
Office or Equipment rental5%
Advertising2%
Dividends10%

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Felipe Kasinsky Rocket Internet
I worked with Vincent while at Easy Taxi. His company, B-Accounting, provided us with accounting seravices. While dealing with him and his staff, I did not have to worry about my accounts at all. His company made sure that all the accounts were up to date and that all reports were delivered on time. All of this at a very reasonable cost. I strongly recommend working with Vincent and his firm for accounting services. 17/03/2020
Anne Belveze Moxy by Orami
It is with much pleasure that I recommend Vincent. I know Vincent since 2014. We outsourced our full accounting as well as our management reporting with B-Accounting. I deeply appreciated his accuracy, responsiveness in the exchanges and strict respect of the deadlines. Vincent is a great professional with strong international and local financial expertise. 17/03/2020

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