Withholding Tax (WHT) is a mechanism in Thailand’s tax system that requires the “payer” to withhold a portion of the payment and remit it to the Revenue Department on behalf of the recipient. This serves as an advance tax collection method to prevent tax evasion.

Summary Table: Withholding Tax Rates under Section 40 of the Revenue Code

Section 40	Type of Income	Examples	WHT Rate (Individual)	WHT Rate (Corporation)
40(1)	Salary, wages, gratuity, pension	Permanent employees, monthly/daily workers	Progressive rate	No withholding
40(2)	Commissions, freelance fees	Freelancers, outsourced workers	Progressive rate	3%
40(3)	Royalties	Music royalties, software	Progressive rate	3%
40(4)(a)	Interest	Loan interest	15%	1%
40(4)(b)	Dividends, share profits	Stock dividends	10%	10%
40(5)	Rental fees	Buildings, vehicles, machinery	5%	5%
40(6)	Liberal professions	Doctors, engineers, lawyers, auditors	3%	3%
40(7)	General contracting	Construction and material contracting	3%	3%
40(8)	Other income not falling under 40(1)-(7)	Advertising fees Transportation fees Service fees Sales promotion fees	2% 1% 3% 3%	2% 1% 3% 3%

Notes:

• This applies to recipients who are Individual or Corporation in Thailand.
• The tax withheld from the recipient can be used as an annual tax credit to deduct from the annual tax liability.
• 40(1): Must be withheld according to the personal income tax progressive rates and remitted monthly via form P.N.D. 1.
• 40(2), (3): Must be withheld according to the personal income tax progressive rates and remitted via form P.N.D. 3 if the recipient is an individual, or form P.N.D. 53 if the recipient is a juristic person.

Relevant Tax Forms

Form	Used for
P.N.D. 1	Withholding tax on salaries/wages paid to employees
P.N.D. 3	Withholding tax paid to individuals (e.g., freelancers)
P.N.D. 53	Withholding tax paid to Thai juristic persons
P.N.D. 54	Withholding tax paid to non-residents

*The form must be submitted online by the 15th of the following month.