Although the most well-known type of withholding tax in Thailand is personal income tax (PIT), which a company deducts from employee salary or wages, there are also many other business transactions subject to withholding tax.
Businesses in Thailand are required by law to withhold tax from employee compensation, and also from vendor payments for most services rendered. The amount of tax withheld depends on the type of income and the tax status of the payment recipient.
In most cases, when a vendor provides a service, the company paying for the service withholds 3 per cent tax from the payment. The Revenue Department requires that the company withholding the tax provide the vendor with a withholding tax certificate, which is a statement that indicates the amount that was withheld. According to Section 50 Bis of the Thai Revenue Code, the withholding tax certificate must be provided at the time payment for services is made.
Juslaws & Consult is a one-stop source for comprehensive payroll management. Many clients choose our payroll service as part of a complete Accounting and Auditing service package. As Thai tax laws and reporting requirements can be complex, we seek to ensure that our clients are always in compliance with government regulations, while also making certain that the company’s payroll requirements are met.