Rates, calculation methods and filing deadlines for Withholding Tax in Thailand.
Withholding Tax (WHT) is a deduction made at source on payments to suppliers for the provision of services. There is no WHT on the purchase of products. WHT applies to expenses greater than ฿1,000 and to recurring expenses under long-term agreements even if below ฿1,000 (e.g. telephone or internet bills).
Thai companies can use WHT deducted from their income as a credit against Corporate Income Tax due at year end.
| Type of Service | WHT Rate |
|---|---|
| Professional services and hire of work | 3% |
| Rental of assets | 5% |
| Rental services | 3% |
| Non-life insurance (e.g. motor insurance) | 1% |
| Interest payments | 1% |
| Dividends | 10% |
| Royalties | 3% |
| Advertising | 2% |
| Telephone and internet | 3% |
| Transportation | 1% |
WHT is calculated on the amount before VAT and submitted to the Revenue Department by the 7th of the following month (15th when filed online).
Total Before VAT: ฿10,000
+ VAT (7%): ฿700
– WHT (3% × ฿10,000): ฿300
Amount transferred to supplier: ฿10,400
WHT of ฿300 submitted to the Revenue Department by the 15th of the following month.
A 15% WHT (10% for dividends) applies on payments made to foreign companies that do not carry on business in Thailand. This rate may be reduced or exempt under applicable Double Tax Treaties (DTTs).
BizStep prepares and submits your WHT returns (PND.1, 3, 53 and 54) every month as part of our all-inclusive accounting plans.
Talk to us about your accounting needs in Thailand.