Thailand Domestic Payments Withholding Tax Rates
On May 2017, Ministerial Regulation No 328 (BE 2560) was gazetted, reducing the with-holding tax rate from 0.75% to 0.5% for payments made for the purchase of rice produce. This Tax Insight has been updated for the issuance of this Ministerial Regulation.
Thailand has an extensive withholding tax system for domestic payments, and for various types of 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.
The types of prescribed payments and the rates of withholding tax a "payer of income" is required to deduct from a payee in Thailand are as follows:
(1) The 5% rate applies for payments made to a foreign company carrying on business in Thailand without a permanent branch office in Thailand.
(2) As prescribed in Ministerial Regulation No 328 (BE 2560) issued on 25 April 2017.
A “payer of income” is also required to provide a “withholding tax deduction certificate” to the payee.
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.