Withholding Tax (Thailand) - Overview

Introduction

In Thailand, tax must be withheld when making payments to suppliers for services provided. A withholding certificate is issued to the supplier for each tax registration number (for each finance company).

The WHT is applicable for individuals as well as companies. In Thailand, individuals are issued a tax ID of 13 digits, whereas a company’s tax ID comprises of 10 digits.

Withholding tax (WHT) is applicable for purchase invoices. However, purchase invoices are not applicable for individuals and in which case a WHT-containing payment without an invoice is generated. Such a payment can be linked to a cheque or a bank transfer. The WHT reporting requirements of these invoice-independent payments, are the same the invoice-related WHT.

Withholding Tax Certificate

The withholding certificate must be printed in a specific format.

A WHT certificate is generated, when paying a WHT-liable purchase invoice or standing order. The certificate ID is a unique alphanumeric string that is sent to the suppliers. The certificate ID may consist of a series and a running number and must be generated for Payment by Supplier (Invoice from Business partner) by finance company.

These certificates are generated:
  • PND3 – For Individual
  • PND53 – For Corporate
  • PND54 – WHT Declaration Summary – Imported Foreign Services

This certificate includes the amounts, grouped by the type of services, such as advertising, royalties and commission. This certificate also specifies the time when the WHT is deducted.

Possible scenarios:
  • Withhold at source
  • Pay every time
  • Pay one time

Monthly withholding tax report (PND3/PND53)

This report is generated on a monthly basis and is sent to the tax authorities for the previous month transactions before the 7th of every month.

Yearly withholding tax report

A report is generated from Infor LN to represent all the WHT transactions that occur in a financial year and are submitted to the tax authorities for verification.

WHT Declaration Summary – Imported Foreign Services (PND54)

PND54 is a report of payments made to foreign suppliers (company or juristic partnership) incorporated under foreign laws and not carrying on business in Thailand but receiving assessable income from commission, fee, goodwill, dividend, share of profits or any other gain derived which is paid from or in Thailand.

This report deals with the reporting of withholding tax payments related to section 70 and Section 70 BIS of Thailand tax department.