Withholding Tax in Thailand
WHT also applies to interest and dividend payments.
Keywords: Mazars, Thailand, Tax, Withholding Tax, Revenue Department
3 August 2023
Remittances made to overseas suppliers may also incur a WHT deduction.
Countries with a double tax treaty with Thailand have different applicable rates.
How to calculate
The following will require the deduction of WHT:
- Expenses greater than 1,000 Baht; and
- Expenses less than 1,000 Baht for which a long term contract is in place (e.g. telephone)
However, no deduction is made for payments to non-taxpayers (e.g. the Government, BOI promoted company).
Common WHT deduction rates:
Service | Rate (**) |
Rent | 5% |
Rental service fee | 3% |
Parking | 3% |
Transportation (*) | 1% |
Telephone | 3% |
Advertising | 2% |
Non-life insurance premiums | 1% |
Professional fees | 3% |
Royalties | 3% |
Interest | 1% |
Dividends | 10% |
Prizes | 5% |
Water and electricity | N/A |
Public transportation / air tickets | N/A |
Life insurance | N/A |
Notes:
(*) Not including fare for public transportation.
(**) Rates are applicable for resident corporations and branches of foreign companies. For payments to individuals, associations and foundations or a foreign company with no permanent residence in Thailand different rates may apply.
When calculating the amount to pay the WHT deduction is calculated net of VAT.
For example:
Service | Net | VAT Rate | VAT | Gross | WHT rate | Total WHT | Pay to supplier |
Rent | 125,000 | 7% | 8,750 | 133,750 | 5% | 6,250 | 127,500 |
Air ticket | 67,000 | 0% | - | 67,000 | 0% | - | 67,000 |
Audit | 300,000 | 0% | - | 300,000 | 3% | 9,000 | 291,000 |
15,250 | 485,500 |
Submission to the Revenue Department
The WHT deducted is paid to the Revenue Department (“RD”) within the 7th day of the following month in which the payment was made. E.g. a payment made on 28th August 2018 to a supplier will require the WHT deducted to be paid to the RD by the 7th September 2018.
The Revenue Department has announced that companies registered for e-filing with have an extra eight days to file all tax returns. This incentive will run until 31 January 2024.
Late submission
The fine for late submission is:
- 100 baht within the first 7 days
- 200 baht after 7 days
An additional penalty of 1.5% of the outstanding amount calculated monthly.
Further sources of information
Please visit the Revenue Department website.