How does withholding tax work for Thai companies?
A Thai payer withholds tax from many payments and files it monthly within 7 days of month-end (15 days online): P.N.D.1 for staff, P.N.D.3 for individuals, P.N.D.53 for companies. Common rates are 3% on service fees and 5% on rent.
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Detailed Explanation
## The returns
- P.N.D.1: tax withheld from employees' pay
- P.N.D.3: payments to individuals
- P.N.D.53: payments to companies and juristic partnerships
## Dates
Within 7 days of the end of the month of payment, or 15 days when filed online.
## Rates
Common rates: 3% on service and professional fees to a Thai company, 5% on rent, 10% on dividends. Finn confirms the rate for each payment type.
## The certificate
Give each payee a withholding certificate (50 Tawi).
## How AccountsOS helps
Finn works out the withholding when you pay a supplier and tracks the monthly dates. AccountsOS does not file the returns.
Source: https://www.rd.go.th/english/6044.html
Real-World Examples
Agency invoice
A 50,000 baht service fee to a Thai company: withhold 1,500 baht and file it on P.N.D.53.
Common Mistakes to Avoid
- Not withholding on service fees
- Forgetting the 50 Tawi
Frequently Asked Questions
Who bears the tax if I forget?
The payer can be liable for tax it should have withheld.
Practical Tips
- Ask suppliers whether they are a company or an individual before paying.
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