Extension of withholding tax reduction to promote e-withholding tax system
Keywords: Mazars, Thailand, Tax, Revenue Department, e-Withholding Tax
7 April 2023
As part of the Thai government’s effort to promote the use of the e-withholding tax system, Ministerial Regulation No. 389, issued by the Ministry of Finance, was published in the Government Gazette on 10 March 2023. This regulation reduces WHT rates to 1% for certain types of payments made through the e-withholding tax system from 1 January 2023 to 31 December 2025. The reduced WHT rate of 1% applies to the following types of payments made to individuals and to companies or partnerships, excluding foundation or associations:
Payments to individuals | Payments to companies or partnerships |
1. Rental, except for boat rental (Section 40(5)) | 1. Rental, except for boat rental (Section 40(5)) |
2. Income from liberal arts professions, e.g., engineering, architecture, accounting (Section 40(6)) | 2. Income from liberal arts professions, e.g., engineering, architecture, accounting (Section 40(6)) |
3. Income derived from a contract for work where the contractor has to provide essential materials besides tools (Section 40(7)) | 3. Income derived from a contract for work where the contractor has to provide essential materials besides tools (Section 40(7)) |
4. Prizes received from competitions and drawings (Section 40(8)) | 4. Prizes received from competitions and drawings (Section 40(8)) |
5. Income derived from the hire of work, awards, sales promotions, advertising, or other services, except service payments made to hotels and restaurants and life insurance premiums (Section 40(8)) | 5. Income derived from the hire of work, awards, sales promotions, advertising, or other services, except service payments made to hotels and restaurants and life insurance premiums (Section 40(8)) |
6. Income paid to cast members, i.e., actors or actresses, who are residents of Thailand (Section 40(8)) | 6. Income derived from the performance of work (Section 40(2)) |
| 7. Fees for goodwill, copyright, or other rights (Section 40(3)) |
Source: https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/mr389.pdf