Withholding tax rates for personal income recipients

     Many people may wonder why a portion of their salary or wage is deducted, which is referred to as withholding tax. This is one form of tax payment where the income received by individuals, who are responsible for paying personal income tax, is subject to withholding tax and is remitted to the Revenue Department under the application form Por Ngor Dor 3.

The types of income that are subject to withholding tax are as follows:

1% Withholding Tax Rate

• Ship rental fees under the laws pertaining to the promotion of maritime trade, used for international transportation of goods
• Freight charges, excluding passenger fares for public transportation

2% Withholding Tax Rate

• Advertising fees

3% Withholding Tax Rate

• Income from freelance professions as per Section 40 (6) of the Revenue Code (Legal, medical, engineering, architecture, accounting, fine arts, or other professions prescribed by law)
• Service charges that qualify as assessable income under Sections 40 (7) and (8) of the Revenue Code
• Assessable income as per Section 40 (8) of the Revenue Code, specifically from providing services, excluding:

(1) Passenger fares for public transportation

(2) Payments for rental income, freelance professions, prizes, public performers, freight charges, excluding passenger fares for public transportation that are specifically subject to withholding tax

(3) Payments for hotel and restaurant services

(4) Life insurance premiums

• Rewards, discounts, or any benefits from sales promotion

5% Withholding Tax Rate

• Rent or other benefits from leasing property as per Section 40 (5) (A) of the Revenue Code, such as rent for buildings, houses, structures, etc., excluding property rights
• Prizes from competitions, raffles, and similar activities
• Performance fees for public performers, including theater, film, radio, and television actors, singers, musicians, professional athletes, or any entertainers (Income recipients resident outside Thailand, in case of film or television production in Thailand with permission to shoot in Thailand and income recipients resident in Thailand)

10% Withholding Tax Rate

• Performance fees for public performers, including theater, film, radio, and television actors, singers, musicians, professional athletes, or any entertainers (Income recipients resident outside Thailand)

15% Withholding Tax Rate

• Income from property rentals as per Section 40 (5)
• Income from freelance professions as per Section 40 (6) of the Revenue Code (Legal, medical, engineering, architecture, accounting, fine arts, or other professions prescribed by law) in the case of individual income taxpayers not residing in Thailand.

Source: The Revenue Department, 90 Phaholyothin 7, Phayathai, Phayathai, Bangkok 10400

Tel. +66 2272 8000

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