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Withholding Tax (WHT)

WHT, W/Tax, Withholding Tax is tax withheld or deducted. It can be any tax deducted from income to be paid at the source of that income. For example, income tax deducted from the income of a service provider or income tax and social security payments deducted by an employer from its employees' wages.

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Withholding Tax (WHT)

Withholding Tax ("WHT") is the Tax withheld from the payer when paying a service bill. WHT tax rates depend on the nature of the services provided (see below for detailed rates).

When paying a bill for services, the payer must provide the provider with a certificate of WHT withholding to justify the deduction, which is a prepayment of the provider's corporate income tax. Thus, each amount of Tax withheld at source represents a corporate income tax credit due the following year.

How do I calculate WHT tax?

WHT deductions must be calculated for services exceeding THB 1,000 or expenses less than THB 1,000 but with a time commitment, such as a monthly subscription.

The amount of WHT to be deducted is calculated based on the invoice amount excluding VAT.

WHT tax rates by service type

Service Bid
Rental 5%
Rental expenses 3%
Transportation (*) 1%
Advertising 2%
Life insurance premiums 1%
Professional fees 3%
Royalties 3%
Interest 3%
Dividends 10%
Prizes/rewards 5%
Water and electricity No deduction
Public transportation/airline tickets No deduction

Note: (*) Not applicable to public transportation.

Example of WHT calculation

Service The cost of the service VAT rate VAT Cost including VAT WHT rate Total WHT Payable to supplier
Rent 100,000 0% 100,000 5% 5,000 95,000
Accountant Services 10,000 7% 700 10,700 3% 300 10,400
Airfare 20,000 0% 20,000 0% 20,000

Requirement for WHT reporting

Personal income tax must be submitted to the Department of Revenue by the 7th of each month for payments made in the previous month. For example, WHT withheld from a December 15 payment must be submitted to the Department of Revenue by January 7.

However, companies registered on the Department of Revenue's electronic filing system have eight days to file their tax returns, allowing them to file the WHT by the 15th of the month.

Penalties and late filing penalties apply as follows:

  • 1.5%/month of the amount of Tax owed;
  • 100 THB within the first seven days / 200 THB after seven days.

What is Withholding Tax Certificate?

WHT is a prepayment of the supplier's corporate income tax, so the WHT withholding taxpayer must provide the withholding tax certificate to the supplier to justify the deduction to the Department of Revenue.

The following reporting forms are used for monthly WHT certificates:

  • Form PND 1: Tax Return, source - employees (for taxes withheld from employees);
  • Form PND 53: Tax Return, source - companies (for taxes withheld from sellers who are legal entities);
  • Form PND 3: Tax Return, source - individual (for taxes withheld from sellers who are not legal entities).

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Update: 17-02-2023
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