Any Thai company that pays taxable income to companies or individuals is obliged to withhold income tax depending on the provision of the Revenue Code of Thailand and remit the same to the Revenue Department. Below mentioned are the situations when you need to pay a withholding tax in Thailand;
If You are Individual Taxpayer
- Income from salary and wages;
- Income from services provided (e.g. fees, brokerages, meeting fees, and commission fees)
- Income from interest (15% of the payment);
- Income from dividends (10% of the payment);
- Income from rent (5% of the payment);
- Income from liberal profession (e.g. laws, arts of healing, engineering, and architecture);
- Income from a contract of work and labour;
- Income from royalties;
If You are a Thai Corporate Taxpayer
- Income from services provided (e.g. fees, brokerages, meeting fees, and commission fees);
- Income from interest;
- Income from dividends;
- Income from rent;
- Income from liberal profession;
- Income from a payment made to contractors, supplying important materials;
- Income from royalties;
- Income paid by Government agency;
- Income paid from selling goods;
As you already know that the withholding tax will need to submit to the Revenue Department, you must also know that it must be submitted within the 7th day of the following month, wherein the payment was made. Note that the said department has announced that the companies that are registered for e-filing, having an extra 8th days to file the tax returns.
On submitting the withholding tax late, fine needs to be paid, which is 100 baht within the first seven days, and 200 baht after seven days.
