Withholding tax (WHT) is a crucial aspect of Thailand’s tax system, designed to ensure that tax is collected at the source before income reaches the taxpayer. This system applies to various types of income, including salaries, dividends, interest, and payments for services rendered. As both businesses and individuals navigate the complexities of tax compliance, understanding the specific withholding tax rates, forms, and deadlines is essential to avoid penalties and ensure adherence to the law. This guide provides a comprehensive overview of the different types of withholding tax applicable in Thailand, detailing the specific forms required, the rates imposed, and the responsibilities of both payers and recipients. Whether you are an employer, a service provider, or an individual earning income, having a clear grasp of withholding tax obligations is vital for smooth financial operations in Thailand.

PND.1 – Monthly Salary and Wages for Employees

• Purpose: Used by employers to report withholding tax on employees’ salaries, wages, bonuses, and other benefits.
• Tax Rates: 0% to 35%, based on progressive income tax brackets.
• How & When to Pay: Submitted monthly to the Revenue Department. Payment is due by the 7th of the following month for in-person filing, or by the 15th for online submissions.

PND.2 – Dividends, Interest, and Royalties (Individuals)

• Purpose: To report withholding tax on dividend, interest, or royalty payments made to individual taxpayers.
• Tax Rates:
  • Dividends: 10%
  • Interest: 1%
  • Royalties: 3%
• How & When to Pay: Submitted monthly; payment is due by the 7th (in-person) or 15th (online) of the following month.

PND.3 – Payments to Thai Individuals (Non-Employment Income)

• Purpose: Used for withholding tax on payments to Thai-resident individuals for non-employment income such as services, commissions, and rental payments.
• Tax Rates:
  • Service fees: 3%
  • Commissions: 5%
  • Rental income: 5%
• How & When to Pay: Due monthly by the 7th (in-person) or 15th (online) of the following month.

PND.53 – Payments to Thai Companies (Corporate Payments)

• Purpose: To report withholding tax on service fees, royalties, or contract work payments made to Thai-resident corporate entities.
• Tax Rate: 3% for most service payments.
• How & When to Pay: Monthly by the 7th (in-person) or 15th (online) of the following month.

PND.54 – Payments to Non-Residents (Foreign Entities)

• Purpose: For withholding tax on payments made to non-resident companies or individuals for services, royalties, interest, or other income.
• Tax Rates: Generally between 5% and 15%, depending on the type of payment and any applicable tax treaties.
• How & When to Pay: Due monthly by the 7th (in-person) or 15th (online) of the following month.