Withholding tax (WHT) in Thailand
Rates, how to calculate it, when to file it and how to issue the WHT certificate.
Withholding tax (WHT) in Thailand is income tax that the payer deducts at source when paying a supplier for services, rent, advertising and other items. The rate depends on the type of payment and on who receives it, as shown in the table below.
The payer files the WHT with the Revenue Department (RD) and gives the supplier a withholding tax certificate. For the supplier, WHT is a prepayment of its own income tax: each amount withheld is a tax credit against the corporate income tax (CIT) it pays for the year.
How to fill in a WHT certificate
How to calculate WHT
Deduct WHT on service payments of THB 1,000 or more, and on smaller amounts that are part of an ongoing contract, such as a monthly subscription.
Calculate WHT on the invoice amount before VAT.
WHT rates for payments to Thai resident companies:
| Service | Rate |
|---|---|
| Rent | 5% |
| Rental service fee | 3% |
| Transportation (*) | 1% |
| Advertising | 2% |
| Non-life insurance premiums | 1% |
| Professional fees and services | 3% |
| Royalties | 3% |
| Interest | 1% |
| Dividends | 10% |
| Prizes and rewards | 5% |
| Water and electricity | No deduction |
| Public transport and air tickets | No deduction |
Notes:
(*) Does not apply to public transport.
Payments to foreign companies with no permanent establishment in Thailand are subject to 15% WHT (10% on dividends), filed on PND 54. A double tax treaty can reduce the rate.
Example of a WHT calculation:
| Service | Net | VAT rate | VAT | Gross | WHT rate | Total WHT | Pay to supplier |
|---|---|---|---|---|---|---|---|
| Rent | 100,000 | Exempt | - | 100,000 | 5% | 5,000 | 95,000 |
| Accounting fee | 10,000 | 7% | 700 | 10,700 | 3% | 300 | 10,400 |
| Air ticket | 20,000 | 0% | - | 20,000 | 0% | - | 20,000 |
WHT filing deadlines
File WHT with the RD by the 7th of the month after the payment. For example, WHT deducted from a payment made on 15 December is due by 7 January.
Returns filed online through the RD e-filing system get 8 extra days, until the 15th of the month.
Late filing and payment:
- Surcharge: 1.5% per month on the tax due.
- Fines: THB 100 if filed within 7 days of the deadline, THB 200 after that.
What is a withholding tax certificate?
Because WHT is a prepayment of the supplier’s income tax, the payer must give the supplier a withholding tax certificate (often called a “50 Tawi”) showing the amount deducted. The supplier keeps it as proof of the tax credit.
The same data feeds the monthly WHT returns, which Plizz prepares for its bookkeeping clients:
- PND 1: WHT on employees’ salaries.
- PND 3: WHT on payments to individuals and other suppliers that are not juristic persons.
- PND 53: WHT on payments to Thai companies and partnerships.
- PND 54: WHT on payments to foreign companies.
