Withholding Tax
Certain types of income paid to companies are subject to withholding tax at source. The withholding tax rates depend on the types of income and the amount of tax status of recipient. The payer of income is required to file the return (Form CIT 53) and submit the amount of tax withheld to the District Revenue Office within seven days of the following month in which the payment is made. The tax withheld will be credited against final tax liability of the taxpayer. The following are the withholding tax rates on some important types of income.
| Types of income | Withholding tax rate |
| 1.Dividends | 10% |
| 2.Interest | 1% |
| 3.Royalties | 3% |
| 4.Advertising Fees | 2% |
| 5.Service and professional fees | 3% if paid to Thai company or foreign company having permanent branch in Thailand; 5% if paid to foreign company not having permanent branch in Thailand |
| 6.Prizes | 5% |
Notes:
- Tax will be withheld on interest paid to associations or foundations at the rate of 10%.
- Royalties paid to associations or foundations are subject to 10% withholding tax rate.
- Government agencies are required to withhold tax at the rate of 1% on all types of income paid to companies.
Withholding Tax for Personal Income Tax
For certain categories of income, the payer of income has to withhold tax at source, file tax return (Form PIT 1, 2 or 3 as the case may be) and submit the amount of tax withheld to the District Revenue Office. The tax withheld shall then be credited against tax liability of a taxpayer at the time of filing PIT return. The following are the withholding tax rates on some categories of income.
| Types of Income | Withholding Tax Rate |
| 1.Employment income | 5-37% |
| 2.Rents and prizes | 5% |
| 3.Ship rental charges | 1% |
| 4.Service and professional fees | 3% |
|
5.Public entertainer remuneration -Thai resident – non-resident |
5% 5-37% |
| 6.Advertising fees | 2% |
For more information, please feel free to contact us:
Phone: +66 2 933 9000
Fax: +66 2 933 6120
Email: bkk@panwa.co.th