Withholding Tax (WHT)
The withholding tax (“WHT”) is a tax deducted at source from the payment of a service invoice. WHT rates depend on the nature of provided services (cf. below detailed rates).

Upon payment of a service invoice, the payer must provide a withholding tax certificate to the vendor to justify the WHT deduction, the latter constituting a prepayment of the vendor Corporate Income Tax. Each amount of Withholding Tax deducted therefore constitutes a tax credit of the Corporate Income tax payable the following year.

How to calculate WHT?

WHT deductions shall be calculated on services expenses greater than 1,000 THB, or expenses lower than 1,000 THB but with a time commitment such as monthly subscriptions. The WHT to be deducted is calculated based on the invoice amount exclusive of VAT.

Withholding tax rates applicable to Thai resident companies:

Rate charges

Rental 5%
Service rental fee 3%
Shipping cost (*) 1%
Advertising costs 2%
Non-life insurance premium 1%
Professional fees 3%
Royalty 3%
interest 3%
Dividend 10%
Prize money 5%
water bill, electric bill No Deduction
public transport / air ticket / air ticket No Deduction

NOTE:

(*) not available for public transport

Example of WHT calculation:

เพื่อขอให้ชำระค่าสินค้าและบริการ แต่การออกใบกำกับภาษี จะออกได้ก็ต่อเมื่อมีการส่งมอบสินค้าหรือรับชำระเงิน ซึ่งวันที่ในใบกำกับภาษี จะมีผลกับภาษีมูลค่าเพิ่มต่อไป
Service fee Together Tax Rates Tax All withholding tax rate Including withholding tax Paid to distributors
Rentals 100,000 Exclude 100,000 5% 5,000 95,000
Accounting Fee 10,000 7% 700 10,700 3% 300 10,400
Air tickets 20,000 0% 20,000 0% 20,000

Withholding tax filing

เพื่อขอให้ชำระค่าสินค้าและบริการ แต่การออกใบกำกับภาษี จะออกได้ก็ต่อเมื่อมีการส่งมอบสินค้าหรือรับชำระเงิน ซึ่งวันที่ในใบกำกับภาษี จะมีผลกับภาษีมูลค่าเพิ่มต่อไป

Withholding income tax must be filed with the Revenue Department by the 7th day of every month for the previous month’s payment. For example, the withholding tax deducted from the payment made on the 15th of December must be filed with the Revenue Department. by January 7

However, if a registered company submits an electronic form to the Revenue Department You will be able to extend the time for another 8 days to file your tax return. is by the 15th day of the month

Criminal fines and penalties for late filing

เพื่อขอให้ชำระค่าสินค้าและบริการ แต่การออกใบกำกับภาษี จะออกได้ก็ต่อเมื่อมีการส่งมอบสินค้าหรือรับชำระเงิน ซึ่งวันที่ในใบกำกับภาษี จะมีผลกับภาษีมูลค่าเพิ่มต่อไป
  • Fines: 1.5%/month of the tax due amount.
  • Penalties: 100 THB within the first 7 days / 200 THB after 7 days.

What is a Withholding Tax Certificate?

The WHT constitutes a prepayment of the vendor Corporate Income Tax, that is why the payer deducting the WHT shall provide a withholding tax certificate to the vendor in order to justify the deduction to the Revenue Department.

Such WHT certificates are needed for your monthly WHT submissions which Plizz will prepare as follows:

PND 1 Form: Withholding Tax Return – Employees (for taxes withheld from employees)
PND 53 Form: Withholding Tax Return – Companies (for taxes withheld from vendors who are juristic persons)
PND 3 Form: Withholding Tax Return – Individual (for taxes withheld from vendors who are not juristic persons).