By virtue of Ministerial Regulation No. 361 dated 27 March 2020, effective from 1 April – 30 September 2020, withholding tax rate will be reduced from 3% to 1.5% for the following types of incomes:
|Types of incomes||Eligible Recipients|
|Hire-of-work income||Company or juristic partnership operating business in Thailand.|
|Royalty (goodwill, copyrights and other rights)
Note: Not applicable to other incomes categorized under Section 40(3) of the Revenue Code, e.g. annuity and annual payments received under the will, other transactions or due to the court’s order.
|Company or juristic partnership operating business in Thailand.|
|Incomes for liberal professions (i.e. law, healing arts, engineering, architecture, accounting and fine arts) and a contractor that provides substantial materials besides the tools.||Individual residing in Thailand (i.e. aggregate stay(s) in Thailand not less than 180 days during the calendar year), and company or juristic partnership operating business in Thailand.|
|Service fees (excluding payments to public entertainers, advertisement fees, insurance premium, transportation fees, hotel/restaurants), awards, discounts or other benefits granted under the sales promotion.||Individual residing in Thailand, and company or juristic partnership operating business in Thailand.|
To encourage the payers to apply e-withholding tax system via the financial institutions, the e-withholding tax rate for the abovementioned types of incomes will be reduced from 3% to 2% during 1 October – 31 December 2020.
The above withholding tax rate reductions will not apply to incomes paid to the foundations and associations to which the normal 10% withholding tax will continue to apply (remark: no withholding tax for the charity foundations and associations announced by the Ministry of Finance).