Withholding Tax

Withholding Tax

Companies operating in Thailand are required by law to withhold tax when paying income and to submit the amount of tax withheld to the Department of Revenue with a withholding tax report and they must withhold taxes from employee compensation every pay period. The withholding tax rate depends on the amount and type of income paid.

The following are required to deduct withholding tax:

  • Expenses greater than 1,000 Baht; and
  • Expenses less than 1,000 Baht for which a long term contract is in place (e.g. telephone)

No deduction is required for payments made to non-taxpaying business entities such as the government or the Board of Investment (BOI) promoted company. 

PIT Personal Income Tax 

Thailand's Personal Income Tax (PIT) is the most common type of withholding tax. It is a direct tax that is withheld from an individual's income by their employer. The actual amount is based on a schedule published by the Thai Revenue Department. Individual taxpayers are required to file a return each calendar year and to pay any additional tax that may be due.

Deadline by the Revenue Department

Every 7th day of the following month which the payment was made the WHT must be paid to the Revenue Department. Late payments will be penalized as follows:

1-7 days = 100 baht
7 days or more = 200 baht

A penalty of 1.5% of the outstanding amount will be added to the total amount each month. The Revenue Department has announced that companies registered for e-filing have an extra eight days to file all tax returns. This incentive will run until 31 January 2024.

Other Types Of Payments

With some other types of payments for services made to persons that are not employees of the company, the company must withhold tax at the time of payment. The company is required to file a tax return and submit the amount withheld to the Department of Revenue.

Summary

Juslaws & Consult provides payroll services that include remitting withholding tax and submitting reports to the Department of Revenue in Thailand. As part of our payroll management service, Juslaws & Consult addresses the payroll administration requirements of our clients and ensures that the company is in compliance with Thai tax laws. 

We have partners and in-house payroll services which we always offer to big or small companies all around Thailand. If you require additional information on any of our payroll management services please do not hesitate to contact us.