Thailand International Rental Payments Withholding Tax
Tax Insight | May 2016
On 3 May 2016, the Thailand Government resolved to approve the Ministry of Finance's proposal to re-negotiate 11 "targeted" Double Tax Agreements with the Governments of foreign countries and commence dialogue with those foreign countries beginning in 2016.
Whilst the Government did not name those 11 "targeted" Double Tax Agreements we have ascertained them to be the Double Tax Agreements with:
We have deduced that these Double Tax Agreements have been targeted because of the Government wanting to amend the Agreements by prescribing taxing rights for Thailand in connection with payments made "for the use of or the right to use industrial, commercial or scientific equipment" (for which no Thailand taxing rights are prescribed in the Double Tax Agreements).
Sherrings would like to bring to the attention of international businesses, which are renting equipment to a Thailand company and receiving rental of equipment payments free of Thai withholding tax under one of the targeted Double Tax Agreements that it could be a not-too-distant possibility for your business to have a Thai withholding tax liability (similarly to those Singapore businesses renting equipment to a Thailand company from 1 Jan 2017).
For current rates of Thailand withholding tax on international rental of equipment payments, refer to Thailand Withholding Tax Rates for International Payments.
For the Thailand withholding tax rates under the Singapore DTA from 01 Jan 2017, refer to Thailand Withholding Tax under the Singapore DTA from 01 Jan 2017.
This is a general information Tax Insight Article only. It should not be used to determine any matter without consulting with an experienced Thailand tax advisor.