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Service guide
Withholding Tax in Thailand.
How withholding tax in Thailand works: who withholds, the published rates on common payments, monthly remittance, treaty relief, and what a tax firm handles.
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Key facts
- Who actually pays withholding tax?
- The payer deducts it. A business paying for services, rent, royalties, interest, or dividends withholds at the published rate, remits the tax to the Revenue Department, and pays the recipient the net amount with a withholding certificate.
- When is the withheld tax remitted?
- Monthly. For payments to companies, the payer files Form CIT 53 and remits the withheld tax within seven days of the month following the payment.
- Can tax treaties reduce the withholding?
- Often, yes. Thailand's double tax agreements, published by the Revenue Department, can reduce withholding on cross-border payments, but the recipient's entitlement has to be established before the payment is made.
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How withholding tax in Thailand works
Withholding tax in Thailand turns the payer into the tax collector. When a business pays for services, rent, royalties, interest, or dividends, it deducts a percentage set by the Revenue Code, pays the net amount to the recipient, and remits the deducted tax to the Revenue Department itself. The recipient gets a withholding certificate from the payer and uses the withheld amount as a credit against its own tax bill.
That design means the compliance burden sits with whoever pays, and it applies invoice by invoice, every month. A company that fails to withhold, or withholds at the wrong rate, is the one exposed, even though the tax is economically the recipient's.
For payments to companies, the payer files the return (Form CIT 53) and remits the withheld tax within seven days of the month following payment. Withholding on salaries runs through a separate payroll process, which is why most businesses leave employee withholding to a payroll firm and handle vendor withholding in the monthly accounting close.
Published withholding rates on common payments to companies
Rates from the Revenue Department's English corporate income tax guidance for payments to companies. Different rates apply to associations and foundations, and government agencies withhold 1% on all income paid to companies.
| Payment type | Rate |
|---|---|
| Dividends | 10% |
| Interest | 1% (10% when paid to associations or foundations) |
| Royalties | 3% (10% when paid to associations or foundations) |
| Advertising fees | 2% |
| Service and professional fees | 3% to a Thai company or a foreign company with a permanent branch in Thailand; 5% to a foreign company without one |
| Prizes | 5% |
- Dividends
- 10%
- Interest
- 1% (10% when paid to associations or foundations)
- Royalties
- 3% (10% when paid to associations or foundations)
- Advertising fees
- 2%
- Service and professional fees
- 3% to a Thai company or a foreign company with a permanent branch in Thailand; 5% to a foreign company without one
- Prizes
- 5%
Source: Revenue Department, Corporate Income Tax (English guidance)
Checked August 2026
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Cross-border payments and treaty relief
Paying a foreign company changes the analysis. Outbound payments such as royalties, interest, and dividends carry withholding at the rates the Revenue Code sets for foreign recipients, and Thailand's network of double tax agreements, published by the Revenue Department, can reduce those rates or shift where the income is taxed. Which treaty applies, and whether the foreign recipient qualifies for it, has to be established before the payment, since the payer withholds at the moment of paying.
Getting relief applied correctly is its own piece of work: confirming the recipient's residence, matching the payment to the right treaty article, and holding the evidence the Revenue Department expects. Firms handle that as tax treaty application work alongside the routine withholding compliance, and structuring questions around outbound payments usually sit with the broader corporate tax engagement.
How a withholding tax engagement usually runs
Map the payments that trigger withholding
The firm reviews what the business pays for: services, rent, royalties, interest, dividends, cross-border charges, and tags each payment type with its rate. Most errors come from payments nobody realized were in scope.
Withhold and issue certificates at payment
Each qualifying payment goes out net of the withheld tax, and the payer issues the recipient a withholding certificate as evidence of the credit. The firm sets this up inside the payment process so it happens by default.
Remit monthly
Withheld amounts on payments to companies are filed on Form CIT 53 and remitted within seven days of the month after payment. The remittance usually runs in the same monthly close as the VAT return, built from the same invoice records.
Handle treaty relief and corrections
For foreign recipients, the firm establishes treaty entitlement before the payment and keeps the supporting evidence. Where past payments were under-withheld, it quantifies the exposure and manages the correction with the Revenue Department.
When this work is worth paying for
Withholding tax rarely justifies an adviser on its own for a business with a handful of domestic vendors; the rates are published and the routine is monthly. It earns professional attention when payments cross the border, when treaty relief is on the table, when the Revenue Department questions past remittances, or when a due diligence exercise turns up years of under-withholding. In a dispute, tax lawyers in Thailand take over from the compliance team.
The rates on this page are the Revenue Department's published figures for payments to companies, checked in August 2026. Rates for other recipients and for specific cross-border payments depend on the facts and the treaty, so a firm confirms the rate before the payment goes out, and quotes its own fee for that work separately.
This page is general information, not legal advice. Rules, rates, and procedures change; for a specific payment or dispute, speak with a qualified professional.
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Common questions
Frequently asked questions
- How does withholding tax in Thailand work?
- The payer of certain income deducts tax at a rate set by the Revenue Code, remits it to the Revenue Department, and pays the recipient the net amount together with a withholding certificate. The recipient then credits the withheld amount against its own tax liability. The obligation and the exposure sit with the payer, which is why withholding runs as part of the payer's monthly accounting routine.
- What are the common withholding tax rates in Thailand?
- For payments to companies, the Revenue Department's published rates include 10% on dividends, 1% on interest, 3% on royalties, 2% on advertising fees, 3% on service and professional fees paid to a Thai company or a foreign company with a permanent branch in Thailand, 5% on such fees paid to a foreign company without one, and 5% on prizes. Associations and foundations face different rates on some payments, and cross-border rates can differ, so a firm confirms the rate for a specific payment.
- When must withheld tax be remitted to the Revenue Department?
- For payments to companies, the payer files the return on Form CIT 53 and submits the withheld tax within seven days of the month following the month the payment was made. In practice businesses run the remittance in the same monthly close as their other tax filings, built from the same invoice records.
- Can a double tax treaty reduce Thai withholding tax?
- Thailand maintains a network of double tax agreements, published by the Revenue Department, and they can reduce withholding on cross-border payments such as royalties, interest, and dividends, or change where the income is taxed. Relief depends on the recipient qualifying under the specific treaty, and because the payer withholds at the moment of payment, entitlement and evidence need to be settled before the money moves. Firms handle this as tax treaty application work.
- What happens if a business fails to withhold?
- The exposure lands on the payer, since the law makes the payer responsible for deducting and remitting the tax. Discovering under-withholding later means quantifying the shortfall and correcting it with the Revenue Department, which is a common finding in due diligence on Thai companies. A firm can review past payments, size the exposure, and manage the correction.
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Accounting firmBangkokThai · English · French
Cloud-based accounting, tax filing & payroll for businesses in Thailand. All-inclusive pricing, zero hidden fees, 24/7 online access.
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Experts assisting clients in conducting their businesses and protecting their rights and investments in Thailand across a wide range of legal matters.
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