{"id":21065,"date":"2026-03-17T11:53:50","date_gmt":"2026-03-17T04:53:50","guid":{"rendered":"https:\/\/flowaccount.com\/blog\/?p=21065"},"modified":"2026-03-17T12:10:10","modified_gmt":"2026-03-17T05:10:10","slug":"withholding-tax-in-thailand","status":"publish","type":"post","link":"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/","title":{"rendered":"Understanding Withholding Tax in Thailand"},"content":{"rendered":"<div id=\"pl-21065\" class=\"panel-layout\">\n<div id=\"pg-21065-0\" class=\"panel-grid panel-no-style\">\n<div id=\"pgc-21065-0-0\" class=\"panel-grid-cell\" data-weight=\"1\">\n<div id=\"panel-21065-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child\" data-index=\"0\" data-style=\"{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;}\">\n<div class=\"so-widget-sow-editor so-widget-sow-editor-base\">\n<div class=\"siteorigin-widget-tinymce textwidget\">\n<p><img decoding=\"async\" class=\"aligncenter size-medium lazyload\" data-src=\"https:\/\/flowaccountcdn.com\/wordpress\/media\/2026\/2026_27\/2026_27_00_Blog_Cover_1200x630px.jpg\" alt=\"Understanding Withholding Tax in Thailand\n\" width=\"1200\" height=\"630\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/630;\" \/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"panel-21065-0-0-1\" class=\"so-panel widget widget_sow-editor\" data-index=\"1\" data-style=\"{&quot;background&quot;:&quot;#f7f7f7&quot;,&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;}\">\n<div class=\"panel-widget-style panel-widget-style-for-21065-0-0-1\">\n<div class=\"so-widget-sow-editor so-widget-sow-editor-base\">\n<div class=\"siteorigin-widget-tinymce textwidget\">\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\"><b>Navigating withholding tax<\/b> is a common challenge for <b>business owners<\/b>, impacting their financial management.<b> This article aims to clarify what withholding tax<\/b> is, its importance, and how to manage it effectively. By understanding these concepts, you\u2019ll be better equipped to handle your business finances confidently.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><!--more--><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"panel-21065-0-0-2\" class=\"so-panel widget widget_sow-editor\" data-index=\"2\" data-style=\"{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;}\">\n<div class=\"so-widget-sow-editor so-widget-sow-editor-base\">\n<div class=\"siteorigin-widget-tinymce textwidget\">\n<p><span style=\"font-weight: 400;\"><strong>Business people are likely to find themselves frequently engaged in \u201creceiving money\u201d and \u201cpaying money.\u201d<\/strong> But can you believe that a significant obstacle to receiving and paying money is the withholding tax? Many business owners do not understand what it is, why it is important, and what they need to do about it. This article will explain everything you need to know.<\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\">If you want to become a top-notch business owner who receives and pays correctly, you can\u2019t miss this article. We will guide you through everything related to <strong>withholding tax from start to finish.<\/strong><\/span><\/p>\n<br \/>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">\u0e40\u0e25\u0e37\u0e2d\u0e01\u0e2d\u0e48\u0e32\u0e19\u0e44\u0e14\u0e49\u0e40\u0e25\u0e22!<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #2898cb;color:#2898cb\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #2898cb;color:#2898cb\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#What_is_Withholding_Tax_in_Thailand\" title=\"What is Withholding Tax in Thailand?\">What is Withholding Tax in Thailand?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#Why_Withhold_Taxes\" title=\"Why Withhold Taxes?\">Why Withhold Taxes?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#The_main_objectives_of_withholding_tax_are_as_follows\" title=\"The main objectives of withholding tax are as follows:\">The main objectives of withholding tax are as follows:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#Who_Must_Pay_Withholding_Tax_in_Thailand\" title=\"Who Must Pay Withholding Tax in Thailand?\">Who Must Pay Withholding Tax in Thailand?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#When_Does_Withholding_Tax_Apply\" title=\"When Does Withholding Tax Apply?\u00a0\">When Does Withholding Tax Apply?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#Withholding_Tax_Rates_in_Thailand\" title=\"Withholding Tax Rates in Thailand\">Withholding Tax Rates in Thailand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#How_to_Calculate_Withholding_Tax_in_Thailand\" title=\"How to Calculate Withholding Tax in Thailand\">How to Calculate Withholding Tax in Thailand<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#Example_1_Employee_Salary_Progressive_WHT\" title=\"Example 1: Employee Salary (Progressive WHT)\">Example 1: Employee Salary (Progressive WHT)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#Example_2_Service_Fee_with_VAT\" title=\"Example 2: Service Fee with VAT\">Example 2: Service Fee with VAT<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#Late_submission_penalties\" title=\"Late submission penalties\">Late submission penalties<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#Tax_forms_for_withholding_tax_include\" title=\"Tax forms for withholding tax include:\">Tax forms for withholding tax include:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#Managing_Withholding_Tax_with_FlowAccount\" title=\"Managing Withholding Tax with FlowAccount\">Managing Withholding Tax with FlowAccount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#FAQs_Withholding_Tax_in_Thailand\" title=\"(FAQs) Withholding Tax in Thailand\">(FAQs) Withholding Tax in Thailand<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#1_What_types_of_income_are_subject_to_withholding_tax_in_Thailand\" title=\"1. What types of income are subject to withholding tax in Thailand?\">1. What types of income are subject to withholding tax in Thailand?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#2_Are_foreigners_exempt_from_withholding_tax\" title=\"2. Are foreigners exempt from withholding tax?\">2. Are foreigners exempt from withholding tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#3_How_often_do_companies_need_to_file_withholding_tax_returns\" title=\"3. How often do companies need to file withholding tax returns?\">3. How often do companies need to file withholding tax returns?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#4_What_happens_if_withholding_tax_is_underpaid_or_late\" title=\"4. What happens if withholding tax is underpaid or late?\">4. What happens if withholding tax is underpaid or late?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#5_Are_there_ways_to_reduce_withholding_tax_legally\" title=\"5. Are there ways to reduce withholding tax legally?\">5. Are there ways to reduce withholding tax legally?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#6_How_much_is_withholding_tax_in_Thailand\" title=\"6. How much is withholding tax in Thailand?\">6. How much is withholding tax in Thailand?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#7_Which_services_do_1_and_2_withholding_tax_rates_apply_to\" title=\"7. Which services do 1% and 2% withholding tax rates apply to?\">7. Which services do 1% and 2% withholding tax rates apply to?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#8_How_to_avoid_15_withholding_tax\" title=\"8. How to avoid 15% withholding tax?\">8. How to avoid 15% withholding tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#9_Who_needs_to_pay_withholding_tax\" title=\"9. Who needs to pay withholding tax?\">9. Who needs to pay withholding tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/flowaccount.com\/blog\/withholding-tax-in-thailand\/#About_Author\" title=\"About Author\">About Author<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Withholding_Tax_in_Thailand\"><\/span><span style=\"font-weight: 400;\">What is Withholding Tax in Thailand?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<p><b>Withholding Tax is a tax that the payer deducts <\/b><span style=\"font-weight: 400;\">from a payment and then submits to the Revenue Department on behalf of <\/span><b>the payee<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once the tax is deducted, the payer issues a withholding tax certificate to the payee. This certificate can be used as proof of tax paid or as a tax credit when filing an annual tax return.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This system helps ensure that tax is collected in a timely and efficient manner.<\/span><\/p>\n<br \/>\n<h2><span class=\"ez-toc-section\" id=\"Why_Withhold_Taxes\"><\/span><span style=\"font-weight: 400;\">Why Withhold Taxes?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<p><span style=\"font-weight: 400;\"><strong>Withholding tax is when the \u201cpayer\u201d deducts a portion of the tax before paying the \u201cpayee,\u201d<\/strong> and then remits the withheld tax to the Revenue Department.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"The_main_objectives_of_withholding_tax_are_as_follows\"><\/span>The main objectives of withholding tax are as follows:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<br \/>\n<p><strong>1. To pay taxes in advance<\/strong><\/p>\n<p><span style=\"font-weight: 400;\"><strong>For example<\/strong>, Mr. A has an annual income that requires him to pay 100,000 Baht in taxes, but the payer withholds and remits 30,000 Baht in advance. At the end of the year, Mr. A only needs to pay an additional 70,000 Baht (100,000 \u2013 30,000).<\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\">This means that Mr. A has had his tax withheld and has been paying it in advance, so he doesn\u2019t have to pay a lump sum at the end of the year.<\/span><\/p>\n<br \/>\n<p><strong>2. To guarantee tax payments to the government<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">From the government\u2019s perspective, they also need to generate revenue from tax collection. With <strong>withholding taxes<\/strong> applied each time the money is paid, it ensures that the government gradually receives tax payments from individuals and corporations.<\/span><\/p>\n<br \/>\n<p><strong>3. To verify whether taxpayers report their income correctly<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">When the payer withholds taxes and remits them to the Revenue Department, this creates a record of the income and taxes for the payee. Therefore, if the income earner does not file their tax at the end of the year, the Revenue Department can easily detect inaccuracy and notify them to correct their annual taxes filing.<\/span><\/p>\n<br \/>\n<h2><span class=\"ez-toc-section\" id=\"Who_Must_Pay_Withholding_Tax_in_Thailand\"><\/span><span style=\"font-weight: 400;\">Who Must Pay Withholding Tax in Thailand?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<p><span style=\"font-weight: 400;\"><strong>If your company is registered in Thailand<\/strong> (such as a company or partnership), you are generally required to withhold tax when making certain types of payments.<\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\">This requirement applies to payments made to both Thai and foreign individuals or companies. Although the tax is ultimately borne by the income recipient, the payer is responsible for deducting the tax before making the payment and submitting it to the Thai Revenue Department in the following month.<\/span><\/p>\n<\/div>\n<br \/>\n<h2><span class=\"ez-toc-section\" id=\"When_Does_Withholding_Tax_Apply\"><\/span><span style=\"font-weight: 400;\">When Does Withholding Tax Apply?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<p><span style=\"font-weight: 400;\"><strong>Withholding tax applies when a business makes certain types of payments in Thailand.<\/strong> It is generally required at the time the payment is made or when the payment is deemed to be made under Thai tax rules. For payments made to foreign entities, the source of income and applicable tax treaty provisions must also be considered.<\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\">In practice, withholding tax commonly applies to payments such as service fees, wages, transportation costs, advertising fees, rent, professional fees, royalties, interest, dividends, and other specified types of income.<\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\"><strong>Withholding tax does not usually apply to the purchase of goods,<\/strong> unless services are included as part of the transaction. It typically applies when the payment amount is THB 1,000 or more, or when the total value under a long-term contract exceeds THB 1,000, such as internet or service subscriptions.<\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\">Once the tax is withheld, it must be submitted to the Thai Revenue Department in the following month.<\/span><\/p>\n<\/div>\n<br \/>\n<h2><span class=\"ez-toc-section\" id=\"Withholding_Tax_Rates_in_Thailand\"><\/span><span style=\"font-weight: 400;\">Withholding Tax Rates in Thailand<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<p><span style=\"font-weight: 400;\">Withholding tax rates in Thailand vary depending on the type of payment and the recipient\u2019s tax status.<\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\"><strong>Domestic withholding tax rates generally depend on the nature of the expense,<\/strong> while payments made to non-residents are subject to standard rates unless reduced under a Double Tax Agreement (DTA).<\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\">For most service fees, royalties, and interest payments made to foreign companies, <strong>the withholding tax rate is typically 15%.<\/strong><\/span><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\">Dividend payments to non-residents are generally subject to a <strong>10%<\/strong> <strong>withholding tax rate. <\/strong><\/span><span style=\"font-weight: 400;\">Below is a practical summary of the most common withholding tax rates in Thailand.<\/span><\/p>\n<br \/>\n<p><img decoding=\"async\" class=\"aligncenter size-medium lazyload\" data-src=\"https:\/\/flowaccountcdn.com\/wordpress\/media\/2026\/2026_27\/2026_27_01.jpg\" alt=\"Withholding Tax Rates in Thailand\n\" width=\"1000\" height=\"2005\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/2005;\" \/><\/p>\n<div class=\"so-widget-sow-editor so-widget-sow-editor-base\">\n<div class=\"siteorigin-widget-tinymce textwidget\">\n<br \/>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Calculate_Withholding_Tax_in_Thailand\"><\/span><span style=\"font-weight: 400;\">How to Calculate Withholding Tax in Thailand<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<p><span style=\"font-weight: 400;\"><strong>Withholding tax<\/strong> is calculated on the <\/span><b>net amount before VAT<\/b><span style=\"font-weight: 400;\">. WHT is not applied to VAT amounts \u2014 only the base payment amount is used.<\/span><\/p>\n<br \/>\n<p><b>Formula:<\/b><b><br \/>\n<\/b><b>WHT = Payment \u00d7 Tax Rate<\/b><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"Example_1_Employee_Salary_Progressive_WHT\"><\/span>Example 1: Employee Salary (Progressive WHT)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In Thailand, employers withhold tax on employee salaries using <\/span><b>progressive personal income tax rates<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose an employee earns <\/span><b>THB 50,000 per month<\/b><span style=\"font-weight: 400;\">. The calculation below applies <\/span><b>after considering the standard deduction<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<br \/>\n<p><img decoding=\"async\" class=\"aligncenter size-medium lazyload\" data-src=\"https:\/\/flowaccountcdn.com\/wordpress\/media\/2026\/2026_27\/2026_27_02.jpg\" width=\"1200\" height=\"551\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/551;\" \/><\/p>\n<\/div>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"Example_2_Service_Fee_with_VAT\"><\/span><span style=\"font-weight: 400;\">Example 2: Service Fee with VAT<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Suppose your company pays a service invoice:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net service fee:<\/b><span style=\"font-weight: 400;\"> THB 100,000<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>VAT (7%):<\/b><span style=\"font-weight: 400;\"> THB 7,000<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total invoice:<\/b><span style=\"font-weight: 400;\"> THB 107,000<\/span><\/li>\n<\/ul>\n<br \/>\n<p><span style=\"font-weight: 400;\">With a <\/span><b>3% WHT rate<\/b><span style=\"font-weight: 400;\"> (e.g., for professional fees):<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>WHT = THB 100,000 \u00d7 3% = THB 3,000<\/b><b><br \/>\n<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Amount to supplier = THB 107,000 \u2212 THB 3,000 = THB 104,000<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The THB 3,000 withheld is remitted to the <\/span><b>Thai Revenue Department<\/b><span style=\"font-weight: 400;\">, and the supplier receives a <\/span><b>withholding tax certificate<\/b><span style=\"font-weight: 400;\"> to claim the tax credit.<\/span><\/p>\n<br \/>\n<h2><span class=\"ez-toc-section\" id=\"Late_submission_penalties\"><\/span><span style=\"font-weight: 400;\">Late submission penalties<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<p><span style=\"font-weight: 400;\">When tax is withheld, the payer must prepare and submit a withholding tax return to the Revenue Department. The filing deadline depends on the submission method: the 7th of the following month for paper filing and the 15th for e-filing. The tax form used also depends on the type of income and the type of payee.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"Tax_forms_for_withholding_tax_include\"><\/span><span style=\"font-weight: 400;\">Tax forms for withholding tax include:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<br \/>\n<p><img decoding=\"async\" class=\"aligncenter size-medium lazyload\" data-src=\"https:\/\/flowaccountcdn.com\/wordpress\/media\/2026\/2026_27\/2026_27_03.jpg\" alt=\"Tax forms for withholding tax\" width=\"1200\" height=\"776\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/776;\" \/><\/p>\n<\/div>\n<br \/>\n<p><span style=\"font-weight: 400;\">If withholding tax returns are not filed on time, penalties and surcharges may apply under Thai tax law.<\/span><\/p>\n<p><strong>If the return is late:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The fine is <\/span><b>THB 100<\/b><span style=\"font-weight: 400;\"> if filed within 7 days after the due date.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The fine increases to <\/span><b>THB 200<\/b><span style=\"font-weight: 400;\"> if filed more than 7 days late.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In addition, a <b style=\"color: initial;\">1.5% monthly surcharge<\/b><span style=\"font-weight: 400;\"> is charged on any unpaid tax. Even part of a month is counted as a full month.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To avoid unnecessary costs, businesses should ensure that withholding tax is <\/span><b>filed and paid on time each month<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<br \/>\n<h2><span class=\"ez-toc-section\" id=\"Managing_Withholding_Tax_with_FlowAccount\"><\/span><span style=\"font-weight: 400;\">Managing Withholding Tax with FlowAccount<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img decoding=\"async\" class=\"aligncenter size-medium lazyload\" data-src=\"https:\/\/flowaccountcdn.com\/wordpress\/media\/2026\/2026_27\/2026_27_04.jpg\" alt=\"Managing Withholding Tax with FlowAccount\n\" width=\"1200\" height=\"1400\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/1400;\" \/><\/p>\n<br \/>\n<p><span style=\"font-weight: 400;\">Managing withholding tax requires <\/span><b>accuracy, consistency, and proper documentation<\/b><span style=\"font-weight: 400;\">, which can be time-consuming, especially for those new to Thailand\u2019s tax system.<\/span><\/p>\n<p><b>FlowAccount<\/b><span style=\"font-weight: 400;\"> helps simplify the process by:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Recording expenses<\/b><b><br \/>\n<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculating withholding tax automatically<\/b><b><br \/>\n<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Generating withholding tax certificates<\/b><span style=\"font-weight: 400;\"> with accuracy, which can be <\/span><b>printed, shared via link, or sent directly by email<\/b><span style=\"font-weight: 400;\"> to the payee<\/span><\/li>\n<\/ul>\n<br \/>\n<p><a href=\"https:\/\/flowaccount.com\/\"><span style=\"font-weight: 400;\">FlowAccount<\/span><\/a><span style=\"font-weight: 400;\"> also prepares files <\/span><b>ready for online withholding tax filing<\/b><span style=\"font-weight: 400;\">, reducing manual work and errors. By simplifying the entire process, FlowAccount allows business owners and accountants to work more efficiently.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, monthly withholding tax can be <\/span><b>managed and submitted quickly, smoothly, and with confidence<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<div id=\"pl-21065\" class=\"panel-layout\">\n<div id=\"pg-21065-0\" class=\"panel-grid panel-no-style\">\n<div id=\"pgc-21065-0-0\" class=\"panel-grid-cell\" data-weight=\"1\">\n<br \/>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_Withholding_Tax_in_Thailand\"><\/span><span style=\"font-weight: 400;\">(FAQs) Withholding Tax in Thailand<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"1_What_types_of_income_are_subject_to_withholding_tax_in_Thailand\"><\/span><span style=\"font-weight: 400;\">1. What types of income are subject to withholding tax in Thailand?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: Income such as service fees, rent, royalties, interest, and dividends are commonly subject to WHT. The applicable rate depends on the type of income and recipient.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"2_Are_foreigners_exempt_from_withholding_tax\"><\/span><span style=\"font-weight: 400;\">2. Are foreigners exempt from withholding tax?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: Foreign recipients are generally subject to withholding tax.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, rates may be reduced or exempt under a Double Tax Agreement if conditions are met.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"3_How_often_do_companies_need_to_file_withholding_tax_returns\"><\/span><span style=\"font-weight: 400;\">3. How often do companies need to file withholding tax returns?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: Withholding tax returns must generally be filed monthly. The filing deadline depends on\u00a0 whether paper filing (7th of the following month) or e-filing (15th of the following month) is used.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"4_What_happens_if_withholding_tax_is_underpaid_or_late\"><\/span><span style=\"font-weight: 400;\">4. What happens if withholding tax is underpaid or late?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: Penalties and surcharges apply, and the payer remains responsible for the unpaid tax.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"5_Are_there_ways_to_reduce_withholding_tax_legally\"><\/span><span style=\"font-weight: 400;\">5. Are there ways to reduce withholding tax legally?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: Yes. Using Double Tax Agreements and proper documentation can reduce withholding tax legally.<\/span><\/p>\n<\/div>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"6_How_much_is_withholding_tax_in_Thailand\"><\/span><span style=\"font-weight: 400;\">6. How much is withholding tax in Thailand?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: Domestic withholding tax rates commonly range from 1% to 5%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For foreign payments, rates are typically 10% or 15%, unless reduced by treaty.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"7_Which_services_do_1_and_2_withholding_tax_rates_apply_to\"><\/span><span style=\"font-weight: 400;\">7. Which services do 1% and 2% withholding tax rates apply to?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: The 1% rate often applies to transport or certain service payments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The 2% rate is commonly used for advertising services in Thailand.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"8_How_to_avoid_15_withholding_tax\"><\/span><span style=\"font-weight: 400;\">8. How to avoid 15% withholding tax?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: The 15% rate cannot be avoided unlawfully.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, it may be reduced by applying a Double Tax Agreement with proper documents.<\/span><\/p>\n<br \/>\n<h3><span class=\"ez-toc-section\" id=\"9_Who_needs_to_pay_withholding_tax\"><\/span><span style=\"font-weight: 400;\">9. Who needs to pay withholding tax?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Answer: In simple terms, the tax is paid by the person who receives the income. However, under Thailand\u2019s withholding tax system,\u00a0 the payer deducts the tax from the payment before paying the recipient and remits it to the tax authorities<\/span><\/p>\n<div id=\"pgc-21065-0-0\" class=\"panel-grid-cell\" data-weight=\"1\">\n<div id=\"panel-21065-0-0-3\" class=\"so-panel widget widget_simple_author_box_widget_lite simple_author_box_widget_lite panel-last-child\" data-index=\"3\" data-style=\"{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;}\"><h3 class=\"widget-title\"><span class=\"ez-toc-section\" id=\"About_Author\"><\/span>About Author<span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"saboxplugin-wrap\" itemtype=\"http:\/\/schema.org\/Person\" itemscope itemprop=\"author\"><div class=\"saboxplugin-tab\"><div class=\"saboxplugin-gravatar\"><img decoding=\"async\" data-src=\"https:\/\/blogv2.flowaccount.com\/wp-content\/uploads\/2024\/07\/S__44433494.jpg\" width=\"100\"  height=\"100\" alt=\"Weeraporn Chayasunthorn\" itemprop=\"image\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" style=\"--smush-placeholder-width: 100px; --smush-placeholder-aspect-ratio: 100\/100;\"><\/div><div class=\"saboxplugin-authorname\"><a href=\"https:\/\/flowaccount.com\/blog\/author\/weeraporn\/\" class=\"vcard author\" rel=\"author\"><span class=\"fn\">Weeraporn Chayasunthorn<\/span><\/a><\/div><div class=\"saboxplugin-desc\"><div itemprop=\"description\"><p>Certified Public Accountant (CPA) Thailand with experience as an external auditor for listed companies who aspires to make accounting easy and accessible for everyone.<\/p>\n<p>Apply to be a writer for FlowAccount <a href=\"https:\/\/share.hsforms.com\/1MCpTStWmQ7Ge57iWO9OgkAchcs6\">here<\/a>.<\/p>\n<\/div><\/div><div class=\"clearfix\"><\/div><\/div><\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Navigating withholding tax is a common challenge for business owners, impacting their financial management. This article aims to clarify what withholding tax is, its importance, and how to manage it effectively. By understanding these concepts, you\u2019ll be better equipped to handle your business finances confidently.<\/p>\n","protected":false},"author":46,"featured_media":26279,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[664,1],"tags":[19,736,737],"class_list":["post-21065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-en-articles","category-blog","tag-flowaccount","tag-function","tag-withholding"],"_links":{"self":[{"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/posts\/21065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/comments?post=21065"}],"version-history":[{"count":25,"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/posts\/21065\/revisions"}],"predecessor-version":[{"id":26289,"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/posts\/21065\/revisions\/26289"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/media\/26279"}],"wp:attachment":[{"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/media?parent=21065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/categories?post=21065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flowaccount.com\/blog\/wp-json\/wp\/v2\/tags?post=21065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}