Withholding tax

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 tax status of the recipient.

The payer of income is required to file the return and submit the amount of tax withheld to the District Revenue Office within seven days of the month following the month in which the payment is made.

The tax withheld is credited against the final tax liability of the taxpayer. The following are the withholding tax rates on some important types of income:

No.ServiceWithholding tax rate
1.Employment Income/hire of work0 - 35% (depending on level of income and applicable allowances)
2.Interest15%
3.Dividends10%
4.Royalties5 - 15%
5.Rents15%
6.Prizes5%
7.Service and Professional fees13%
8.Public entertainer remuneration5%
9.Advertising fees12%
10.Capital Gains20 - 35%
11.Telephone and Communications3%
12.Non-life insurance premiums1%

Notes

  1. Not applicable if an individual is the payer of income;
  2. Not applicable for sales of shares on the SET(Stock Exchange Thailand).

Withholding Tax rates: Payments to resident corporations and branches of foreign companies

No.Type of IncomeWithholding tax rate
1.Interest1% if paid to local companies

10% if paid to associations or foundations

2.Dividends10%
3.Royalties3% if paid to local companies

10% if paid to associations or foundations

4.Rents5% if paid to local companies

10% if paid to associations or foundations

5.Prizes5%
6.Service and professional fees3% if paid to local companies

10% if paid to associations or foundations

7.Hire to work3% if paid to a local company or registered branch of a foreign company in Thailand

5% if paid to a foreign company that does not have a registered branch in Thailand but carries on business in Thailand

8.Advertising fees2% if paid to local companies

Notes

  1. 10% withholding tax on dividends does not apply if the recipient of the dividend is a listed company or is a Thai company holding at least 25% of the shares with voting rights in the company paying the dividends without any cross-shareholding, either directly or indirectly;
  2. Government agencies are required to withhold tax at the rate of 1% on all types of income paid to Thai companies.

Withholding Tax Rates: Payments to non-residents

Apart from dividends, which attract withholding tax at 10%, some other payments to a nonresident that resides in a non-DTA country (including interest, royalties, rent, management fees, consultancy payments and capital gains) would attract withholding tax at 15%.

The rates of withholding tax may be reduced under applicable DTAs (see treaty and non-treaty WHT rates below).

 Dividend1
(%)
Interest2
(%)
Royalties3
(%)
Non-treaty countries101515
Treaty countries
Australia1010/1515
Austria1010/1510/15
Bahrain1010/1515
Belgium1010/155/15
Canada1010/155/15
China1010/1515
Denmark1010/155/15
Estonia10108/10
France103/10/155/15
Germany1010/155/15
Hong Kong1010/155/10/15
India1010/1515
Indonesia1010/1515
Italy1010/155/15
Japan1010/1515
Korea1010/155/10/15
Malaysia1010/1515
Mauritius1010/155/15
New Zealand1010/1515
Oman1010/155/15
Philippines1010/1515
Russia101015
Singapore1010/1515
South Africa1010/1515
Switzerland1010/155/10/15
Taiwan5/1010/1515
UAE1010/1515
UK1010/1515
USA1010/155/8/15
Vietnam1010/1515

Notes

  1. The lower rate generally applies if certain conditions are met including having a specified minimum percentage of equity in the company paying the dividend;
  2. The lower rate generally applies to interest to which a financial institution is beneficially entitled;
  3. The lower rate generally applies to payments made as consideration for the right to use any copyright of literary, artistic or scientific work.

Contact us

For additional information on our withholding tax services in Thailand, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
Thailand securities and exchange commission The Thai chamber of commerce and board of trade of Thailand Thailand department of foreign trade - Ministry of Commerce Thailand department of business development - Ministry of Commerce Thailand board of investment