Withholding Taxes in Thailand
Updated on Monday 13th March 2017
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Thailand aligns with the states where the withholding tax is applicable, being deducted from all kinds of payments which are made to contractors who offer a particular type of service. One of the most important withholding tax in Thailand is the one retained from a salary of an employee. There are numerous types of transactions where the withholding tax is applicable, and for a better understanding of such levy, you can ask our Thai company formation specialists. They can also provide you with complete guidance about how to open a company in Thailand.
Types of withholding taxes in Thailand
The Revenue Department in Thailand is in charge of collecting the withholding tax (WHT) in the country, a fee which is also applicable to interests and dividends. It is good to know that in Thailand there is no withholding tax for sums less than THB 1000 but can be found on internet and phone bills of your company in Thailand, for example. We remind the following withholding taxes for all kinds of services in Thailand:
• 3% tax rate for royalties;
• 3% tax rate for services;
• 10% tax rate for dividends;
• 15% tax rate for royalties out of Thailand;
• 5% tax rate for rentals;
• 1% tax rate for transportation;
• 3% tax rate for telecom services;
• 3% tax rate for parking;
• 2% tax rate for advertising.
Our company formation experts in Thailand can offer complete information about the withholding taxes in the country and also about how to open a company in Thailand. Moreover, the company registration in Thailand can be done within a few working days if the documents are accepted by the authorities in charge.
Withholding taxes covered by the double tax treaties signed by Thailand
Thailand has signed numerous double taxation agreements with all kinds of countries, where the withholding tax might be exempt or reduced. For instance, according to the Thai Revenue Code, the payments for abroad workforce may be subject to a 5% withholding tax, but if a double taxation treaty is involved, such tax might not be applicable. The interests, the royalties and the revenues on share sales in Thailand paid to a company registered under the Foreign Business Act will be levied with a 15% tax rate if no double taxation agreement is involved.
You may contact our team of company formation advisors in Thailand if you want to know more details about the withholding tax in Thailand. You can also solicit details about how to set up a company in Thailand.