Covid-19: Reduced Withholding Tax & Social Security contributions

Among the series of measures announced by the Government to help companies affected by the economic consequences of the coronavirus, reduced Withholding Tax rates and Social Security contributions were implemented.

From April 1, 2020 to September 30, 2020, the Withholding Tax (WHT) rate upon payment for professional services is down to 1.5% from 3%. Note that this reduction only applies to payments for professional services (e.g. liberal professions / hire of work / commission) and not for other services such as rental, advertising or non-life insurance. Also, the WHT rates applicable on payments for hire of work / commission to individuals (e.g. freelancers) are not reduced and remain unchanged.

From March 1, 2020 to May 31, 2020, the monthly Social Security contributions are reduced to 1% for employees and 4% for employers, capped at THB 150 and THB 600 respectively. For instance, with a salary of THB 30,000 / month:
Employee’s monthly contribution: THB 150 (from THB 750)
Employer’s monthly contribution: THB 600 (from THB 750)

Moreover, the deadlines to submit the contributions of March, April and May 2020 are extended by 3 months as follows:
March 2020 – extended to July 15, 2020 (from April 15, 2020)
April 2020 – extended to August 15, 2020 (from May 15, 2020)
May 2020 – extended to September 15, 2020 (from June 15, 2020)