Payments made by a Thai company to an overseas recipient for purposes other than the purchase of goods may be subject to withholding tax under Section 70 of the Thai Revenue Code and must generally be reported using PND.54 (ภ.ง.ด.54).
What is PND.54?
PND.54 is the withholding tax return for corporate income tax withheld at source under Sections 70 and 70 bis of the Thai Revenue Code on certain payments made to foreign companies or legal entities that do not carry on business in Thailand.
Who is required to file PND.54?
The payer may be an individual, partnership, company, or other legal entity in Thailand that makes payments falling under Section 40(2)–40(6) to a foreign legal entity that does not carry on business in Thailand.
Examples :Fees ,Commission ,Royalties ,Interest ,Rental income ,Professional service fees
Summary of Types of Assessable Income under Section 40(2)–40(6)
| Section | Type of Income | Examples |
| 40(2) | Commission, remuneration, service fees | Freelancers, outsourcing services |
| 40(3) | Royalties | Music copyrights, software licenses |
| 40(4)(a) | Interest | Loan interest |
| 40(4)(b) | Dividends / Profit distributions | Share dividends |
| 40(5) | Rental income | Buildings, vehicles, machinery |
| 40(6) | Liberal professions | Doctors, Engineers, Lawyers Auditor |
Withholding Tax Rates
- General payments under Section 40(2)–40(6), excluding dividends: 15%
- Dividends under Section 40(4): 10%
- Remittance of profits out of Thailand under Section 70 bis: 10%
Key Points
- Check what the payment is for PND.54 generally applies to payments falling under Section 40(2)–40(6). If the payment does not fall within these categories, PND.54 may not be required.
- Check which country the payment is made to Check whether Thailand has a Double Taxation Agreement (DTA) with that country and determine the applicable withholding tax rate
Depending on the applicable DTA, the withholding tax rate may be exempt, reduced, or subject to the standard 15% rate. - If there is no Double Taxation Agreement (DTA) Generally, withholding tax should be deducted at 15%, subject to the applicable provisions of Thai tax law.
