Withholding Taxes in Thailand

If you are doing business in Thailand then you would have to understand withholding taxes and how it affects your business. When you pay a supplier you need to hold back part of the payment as  withholding tax which varies on what the services had been. The following would be the withholding taxes in Thailand for certain payments for those who are resident in Thailand. For non-resident individuals or corporations anther rate may apply.

Service Rate
Rent 5%
Rental service fee 3%
Parking 3%
Transportation (*) 1%
Telephone 3%
Advertising 2%

 

Taking an example from the above rates we can calculate the rent on your office:

Rent: 125,000 Baht

Vat (7%): 8,750 Baht

——————————– Gross: 133,750 Baht

WHT (5%): 6,250 Baht

——————————– Payment to supplier: 127,500 Baht

This is an example using rent which is at 5% withholding taxes in Thailand. If you need to calculate the Withholding Taxes for other services or products then contact us for further information about the calculated withholding taxes for these services.

Thai Revenue Department

The following month on the 7th you pay your Withholding Taxes to the Revenue Department of Thailand. So if you make a payment on the 28th July then the money is due by the 7th September. If you pay late then there is also a penalty for late payment being 100 Baht for the first 7 days and 200 Baht for late payment over 7 days. There is also an additional penalty of 1.5% per month for each month that it is late.

See the article on this website about Corporate Taxes in Thailand and the withholding taxes being listed as well. For more information contact us for a discussion on your taxes in Thailand.