If you operate a business in Thailand, Thailand’s Revenue Code requires you to pay tax on certain goods and services that you acquire for your business. This includes:
Service – WHT Rate
Rent – 5%
Parking – 3%
Telephone – 3%
Advertising – 2%
Professional Fees – 3%
Royalties – 3%
It is your responsibility to withhold this from the invoiced amount, before VAT, and remit that withholding tax (WHT) to the Revenue Department.
By law, you must remit WHT with Form PND 53 by the 7th of the following month (currently an additional 8 days is given if filing online). Regardless of whether you withhold this amount from your payment, you will still be liable for paying WHT. However, unlike VAT an invoice does not have to show the amount of tax to be withheld so care must be given when calculating how much should be deducted from an invoice before paying it.
For example, you received an invoice due 15 October for 10,700 THB for legal services – 10,000 THB plus 700 THB VAT. Rather than paying 10,700 THB, you would pay 10,400 THB and send a WHT tax certificate for 300 THB to the law firm. Then, you would remit 300 THB with Form PND 53 to the Revenue Department before 7 November (or 15th November if submitting online).
GPS Accounting can absolutely help you with withholding tax requirements. We can work with your finance team or arrange to handle the payments and filings on your behalf. Our team of English-speaking Thai tax experts are very experienced at explaining to and assisting foreign businesses operating in Thailand in understanding the differences between PND 1, PND 2, PND 53, and all the other requirements to ensure smooth operations in Bangkok, Thailand. If you need help with your withholding tax compliance or any other tax, accounting, or auditing issues, contact GPS Accounting today for your free initial consultation. Our office is conveniently located on Sukhumvit Soi 23, you can find our location here.
Our experts are ready to help you with anything you need. We always aim to reply within 24 hours.
