Withholding tax in Thailand: rates, forms and deadlines

EXACCOUNTINGAccounting & tax

2 November 2026

Who must withhold tax in Thailand, common corporate rates, the 1,000 baht test, when to use PND 3 or PND 53, and what happens if you do not withhold.

Withholding tax is tax the payer deducts when paying and remits to the Revenue Department on the recipient's behalf. A company paying another company for services generally withholds 3%, and for renting property withholds 5%. Once you withhold, you issue a certificate and file by the deadline.

Who has to withhold?

Companies and juristic partnerships paying certain types of income, such as service fees, rent, advertising and transport, often have this duty under Revenue Department Order Tor Por 4/2528.

The recipient does not pay extra tax because of it. It is an advance payment that the recipient can credit, using the certificate, when filing an income tax return.

What are the rates?

Common rates for Thai companies paying domestic recipients are:

Services and contracted work: 3%
Property rent: 5%
Advertising: 2%
Transport: 1%, excluding public transport fares

Some items have exceptions or specific rates. Hotel and restaurant service charges, for example, are excluded from the 3% service item. For foreign recipients or items that do not clearly fit a category, check the order before withholding.

Do you withhold below 1,000 baht?

Look at the contract amount, not just each payment. The order requires withholding when the amount under a contract is 1,000 baht or more, even if each instalment is below 1,000 baht.

This often goes wrong with monthly or staged work, so do not judge from a single invoice.

PND 1, PND 3 or PND 53?

PND 1: employee salaries and compensation
PND 3: payments to individuals in the relevant categories
PND 53: payments to companies or juristic partnerships

The form must match the recipient, so check the name, tax ID and transaction type against real documents before filing.

When do you file?

The legal deadline is within 7 days after the end of the month of payment. Online filing is extended to within 15 days for deadlines through January 31, 2027. For later deadlines, check for a new notification first.

If a month has no payment subject to withholding, check the conditions of the form and filing system. Do not assume nothing is needed when adjustments are still outstanding.

Does e-Withholding Tax really reduce the rate to 1%?

Yes, under the measure's conditions. The Revenue Department announced that the 5%, 3% and 2% rates fall to 1% for income paid through the e-Withholding Tax system from January 1, 2026 to December 31, 2027.

It applies only to payments made through the designated system. Transferring money and filing normally does not automatically qualify for 1%.

What if you do not withhold, under-withhold or remit late?

Not withheld or under-withheld: the payer is jointly liable with the recipient for that tax
Remitted late: a surcharge applies under the Revenue Code
Return not filed on time: a fine of up to 2,000 baht

If you discover this later, do not fix it by backdating documents. Tell your accountant or area revenue office, and correct it according to the facts.

Do you need someone to do this for you?

Not always. With few payments in clear categories, you can file through the Revenue Department system yourself. With many recipient types, foreign payments or frequently missed deadlines, our tax team can set a calendar and check your returns. Keep certificates with your monthly accounting documents.

Frequently asked questions

Can a recipient refuse to be withheld from?

If the item falls within the legal duty to withhold, the payer remains liable. Explain that the amount is a tax credit for the recipient, and check that the item actually meets the criteria.

If a seller also delivers goods, do you withhold on transport?

Look at the nature of the transaction in the documents. If delivery is part of a sale of goods, it may not be a separate transport payment. If unsure, ask your area revenue office.