{"id":710,"date":"2022-05-13T16:49:49","date_gmt":"2022-05-13T09:49:49","guid":{"rendered":"https:\/\/unionspace.co.th\/doing-business-living-bangkok\/?p=710"},"modified":"2022-05-13T16:49:51","modified_gmt":"2022-05-13T09:49:51","slug":"taxes-in-thailand-withholding-tax-wht","status":"publish","type":"post","link":"https:\/\/unionspace.co.th\/doing-business-living-bangkok\/taxes-in-thailand-withholding-tax-wht\/","title":{"rendered":"Taxes in Thailand : Withholding Tax (WHT)"},"content":{"rendered":"\n

Withholding Tax (WHT)<\/h1>\n\n\n\n

The withholding tax (\u201cWHT\u201d) 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).<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

<\/p>\n\n\n\n

How to calculate WHT?<\/h1>\n\n\n\n

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.<\/p>\n\n\n\n

The WHT to be deducted is calculated based on the invoice amount exclusive of VAT.<\/p>\n\n\n\n

Withholding tax rates applicable to Thai resident companies:<\/h5>\n\n\n\n
Service<\/th>Rate<\/th><\/tr><\/thead>
Rent<\/td>5%<\/td><\/tr>
Rental service fee<\/td>3%<\/td><\/tr>
Transportation (*)<\/td>1%<\/td><\/tr>
Advertising<\/td>2%<\/td><\/tr>
Non-life insurance premiums<\/td>1%<\/td><\/tr>
Professional fees<\/td>3%<\/td><\/tr>
Royalties<\/td>3%<\/td><\/tr>
Interest<\/td>3%<\/td><\/tr>
Dividends<\/td>10%<\/td><\/tr>
Prizes \/ rewards<\/td>5%<\/td><\/tr>
Water & electricity<\/td>No deduction<\/td><\/tr>
Public transportation \/ air ticket<\/td>No deduction<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Notes:<\/strong><\/p>\n\n\n\n

(*) Not applicable to public transportation.<\/p>\n\n\n\n

Example of WHT calculation:<\/h5>\n\n\n\n
Service<\/th>Net<\/th>VAT Rate<\/th>VAT<\/th>Gross<\/th>WHT Rate<\/th>Total WHT<\/th>Pay to supplier<\/th><\/tr><\/thead>
Rental<\/td>100,000<\/td>exempt<\/td>–<\/td>100,000<\/td>5%<\/td>5,000<\/td>95,000<\/td><\/tr>
Accounting fee<\/td>10,000<\/td>7%<\/td>700<\/td>10,700<\/td>3%<\/td>300<\/td>10,400<\/td><\/tr>
Air ticket<\/td>20,000<\/td>0%<\/td>–<\/td>20,000<\/td>0%<\/td>–<\/td>20,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Withholding tax submission requirement<\/h1>\n\n\n\n

The WHT shall be submitted to the Revenue Department by the 7th of each month for payments made in the previous month. For instance, the WHT deducted from a payment on the 15th of December shall be submitted to the Revenue Department by the 7th of January.<\/p>\n\n\n\n

However, companies registered with the e-filing of the Revenue Department are granted an additional 8 days to file their tax returns, which allows them to submit their WHT by the 15th of the month.<\/p>\n\n\n\n

Fines & penalties for late submissions apply as follows:<\/p>\n\n\n\n

  • Fines: 1.5%\/month of the tax due amount.<\/li>
  • Penalties: 100 THB within the first 7 days \/ 200 THB after 7 days.<\/li><\/ul>\n\n\n\n

    What is a Withholding Tax Certificate?<\/h1>\n\n\n\n

    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.<\/p>\n\n\n\n

    Such WHT certificates are needed for your monthly WHT submissions which Plizz will prepare as follows:<\/p>\n\n\n\n

    PND 1 Form: Withholding Tax Return \u2013 Employees (for taxes withheld from employees)<\/td><\/tr>
    PND 53 Form: Withholding Tax Return \u2013 Companies (for taxes withheld from vendors who are juristic persons)<\/td><\/tr>
    PND 3 Form: Withholding Tax Return \u2013 Individual (for taxes withheld from vendors who are not juristic<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"

    Withholding Tax (WHT) The withholding tax (\u201cWHT\u201d) 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,…<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[134,135],"class_list":["post-710","post","type-post","status-publish","format-standard","hentry","category-doing-business-in-thailand-foreigner-locals","tag-wht","tag-withholding-tax"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t