Thailand Domestic Payments Withholding Tax Rates
As a developing country, Thailand has a very extensive withholding tax system for domestic payments. For the various types of prescribed payments, a "payer of income" is required to deduct withholding tax from a payee and then remit the deducted withholding tax to the Thai Revenue Department within 7 days after the end of the month of payment.
International businesses should note that a "payer of income" is also a foreign company that is carrying on business in Thailand (through either a registered Branch Office or a deemed permanent establishment in Thailand).
The types of prescribed payments and the rates of withholding tax required to be deducted by a “payer of income” to a payee in Thailand are as follows:
* The 5% rate applies in the case of payments for hire of work (services fees) to a foreign entity carrying on business in Thailand without a permanent branch office in Thailand.
A “payer of income” under the domestic payments withholding tax system is also required to provide a “withholding tax deduction certificate” to the payee.
This is a general information Tax Insight Article only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.