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Let our experience be your guide

COVID-19 Measure – Temporary Reduction of Withholding Tax

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).

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