On 10 Mar 2023, Thailand Tax Ministerial Regulation No 389-2566 was gazetted, reducing the withholding tax for domestic payments from 01 Jan 2023 to 31 Dec 2025 but only for e-Withholding Tax Filings.

This Tax Insight has been updated for the prescriptions in MR No 389.

Under Thailand's domestic payments withholding tax system, a corporate entity payer is required to deduct withholding tax when paying payees in Thailand and remit the withholding tax to the Thailand Revenue Department within seven days after the end of the month of payment.

The type of payments and the withholding tax rates required to be deducted are prescribed in the Revenue Code, Ministerial Regulations and the Revenue Dept's Regulations, which when combined, form an extensive listing of withholding tax compliance requirements for Thailand corporate entity payers.

The extensive listing of withholding tax compliance requirements follows:

Payment of / to:	Usual Rate	Reduced Rate for the Period 01 Jan 2023 to 31 Dec 2025

Payment of Section 40 (1) hire of labor (salaries/wages) income to:
- Resident individual	PIT rates
- Non-resident individual	15%

Payment of Section 40 (2) hire of work (services) income to:
- Resident individual	PIT rates
- Non-resident individual	15%
- Resident corporate entity	3%	1%, but only for e-Filings*

Payment of Section 40(3) royalty and rights (goodwill rights/other rights) income to:
- Resident individual	PIT rates
- Non-resident individual	15%
- Resident corporate entity	3%	1%, but only for e-Filings*

Payment of Section 40(4) dividend or share of profits income to:
- Resident individual	10%
- Non-resident individual	10%
- Resident corporate entity other than a resident corporate entity listed on the SET and a resident corporate entity holding at least 25% of the shares in the paying company with no cross holdings	10%

Payment of Section 40(4) capital gains income to:
- Resident individual	PIT rates
- Non-resident individual	15%

Payment of Section 40(4) interest income to:
- Resident individual	15%
- Non-resident individual	15%
- Resident corporate entity	1%

Payment of Section 40(5) rental of property income to:
- Resident individual	5%	1%, but only for e-Filings*
- Non-resident individual	15%
- Resident corporate entity	5%	1%, but only for e-Filings*

Payment of Section 40(6) profess- ional services income to:
- Resident individual	3%	1%, but only for e-Filings*
- Non-resident individual	15%
- Resident corporate entity	3%	1%, but only for e-Filings*

Payment of Section 40(7) hire of work (construction) income to:
- Resident individual	3%	1%, but only for e-Filings*
- Resident corporate entity	3%	1%, but only for e-Filings*
- Non-resident corporate entity carrying on business through a Thailand branch office	3%	1%, but only for e-Filings*

Payment of Section 40(8) adver- tising income to:
- Resident individual	2%
- Resident corporate entity	2%

Payment of Section 40(8) enter- tainer/sport persons income to:
- Resident individual	5%	1%, but only for e-Filings*
- Non-resident individual	PIT rates

Payment of Section 40(8) non-life insurance premiums income to:
- Resident corporate entity	1%

Payment of Section 40(8) prizes/ contest/lucky draws income to:
- Resident individual	5%	1%, but only for e-Filings*
- Resident corporate entity	5%	1%, but only for e-Filings*

Payment of Section 40(8) sales promotion/benefits income to:
- Resident individual	3%	1%, but only for e-Filings*
- Resident corporate entity	3%	1%, but only for e-Filings*

Payment of Section 40(8) trans- port income to:
- Resident individual	1%
- Resident corporate entity	1%

* The 1% rate applies for e-Withholding Tax Filings only. If the e-Withholding Tax system is not used, the usual rate of withholding tax shall apply.

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