Withholding tax and VAT

Add together every period spent in Thailand within the same calendar year; the periods do not need to be continuous, and in practice both the arrival and departure days are usually counted as days in Thailand. If you are near the threshold, keep copies of stamped passport pages, departure cards, boarding passes and accommodation records every year — the burden of proof sits with the taxpayer when the Revenue Department asks.

No. Visa category does not determine tax liability. What matters is the number of days you spend in Thailand in the tax year and where your income arises. A retirement or DTV holder who reaches the day threshold is a Thai resident for that year and must consider remitted foreign income under the normal rules. Conversely, someone below the threshold still pays Thai tax on Thai-source income.

Three layers decide it. First, whether you are a Thai resident in that tax year. Second, when the pension income arose and when it was brought in. Third, what the double tax agreement between Thailand and the paying country says about pensions. Many treaties give exclusive taxing rights over government-service pensions to the paying state, while private pensions may fall to the residence state. The applicable treaty must be read case by case.

Tick the refund request on the return you file. The Revenue Department may ask for supporting documents such as the section 50 bis withholding certificates and allowance evidence. Refunds are now paid mainly through PromptPay linked to the tax ID or Thai ID number; taxpayers without PromptPay may instead receive an instrument to collect at a designated bank. Confirm the current refund channel with your area office.

The payer must issue this certificate to the recipient whenever tax is withheld, stating the income category, the gross amount and the tax withheld. The recipient uses it as a tax credit on the annual return. Without it, claiming the credit or a refund becomes difficult, so request and file the certificate at the time of payment rather than at year end.

In business practice, service fees and contract work are commonly withheld at 3%, rental of immovable property at 5%, advertising at 2%, and professional fees at 3% where the recipient is a Thai company. Salaries are withheld on an annualised computation. Payments to recipients abroad carry their own rates and may be reduced under a double tax agreement. The correct rate depends on the income category and the recipient's status — check the relevant Revenue instruction before withholding.

An operator whose income from selling goods or providing services exceeds THB 1.8 million per year must register for VAT within 30 days of crossing the threshold. Voluntary registration below the threshold is possible and is common where customers require tax invoices or the business needs to recover input VAT. The rate currently collected is 7% under royal decrees that are renewed periodically.

VAT-registered operators file PP 30 monthly by the 15th of the following month, with an extension for internet filing under Revenue Department notifications. Late filing or short payment attracts surcharge and penalty under the Revenue Code, and a record of late filing affects how future input VAT refund claims are reviewed. Build a monthly tax calendar in advance.

A Thai operator that receives services from a supplier outside Thailand and uses those services in Thailand must remit VAT using form PP 36 within the deadline, and may then claim it as input VAT subject to conditions. Foreign digital platforms supplying end users in Thailand fall under a separate VAT registration regime for foreign electronic service providers.

PND 50 is the annual corporate income tax return, filed within 150 days of the end of the accounting period together with the audited financial statements. PND 51 is the half-year return, filed within two months after the last day of the first six months of the accounting period. Under-estimating net profit by more than 25% without reasonable cause attracts a surcharge under the Revenue Code, so the half-year estimate should be prepared conservatively.

Apply to the Revenue Department for the certificate of residence, known by its form reference R.O.22, showing that you met the day threshold in the year concerned — stamped passport pages, proof of address, and evidence of Thai filings and tax paid. Foreign tax authorities use it to grant treaty relief. The companion document, R.O.21, certifies the Thai tax actually paid.

File form L.P.10.1 at the Area Revenue Branch Office for your residence with your passport, current visa and latest entry stamp, work permit or evidence of income, and proof of address such as a lease, house book or TM.30 receipt. The number is normally issued the same day at no charge. A TIN is required to file PND.90/91, reclaim withholding tax and apply for the R.O.22 certificate of tax residence.

Apply at the Large Taxpayer Office or the Area Revenue Office where you file, showing at least 180 days of presence in the tax year and that you have filed your return. Foreign tax authorities accept it to grant treaty withholding rates on dividends, interest and royalties. Processing typically takes 15–30 working days, and the certificate usually needs certified translation before use abroad.

Under Section 70, certain payments to a foreign company not carrying on business in Thailand require withholding and remittance on form PND.54 by the 7th of the following month. Standard rates are 15% for interest and royalties and 10% for dividends, though a DTA may reduce them if the recipient supplies a certificate of residence before payment. Service fees used in Thailand may also trigger self-assessed VAT on form PP.36.

Registration is mandatory once taxable turnover exceeds THB 1.8 million per year; file PP.01 within 30 days of crossing the threshold. Voluntary registration is available below it if you want input tax credits. Registered businesses must issue full tax invoices under Section 86/4, keep input and output VAT reports, and file PP.30 with payment by the 15th of the following month, extended by eight further days for online filing.

Four items typically arise at the Land Office: a 2% transfer fee on the appraised value; specific business tax of 3.3% if held under five years without one year of house-book registration, or 0.5% stamp duty when SBT does not apply; and withholding income tax computed on a sliding scale by years of ownership for individuals. Foreign sellers who plan to repatriate proceeds should keep the FET form or bank credit advice obtained at purchase.

File PND.90 or PND.91, tick the refund request on the form, and attach every 50 Tawi withholding certificate. The Revenue Department may ask for supporting documents before releasing the refund. Linking PromptPay to your taxpayer number or passport speeds up payment; foreigners without PromptPay receive the refund by cheque or another channel the department specifies.

If the payer is a Thai-registered entity or has a permanent establishment in Thailand, it must withhold, remit monthly via PND.1 and issue 50 Tawi certificates. If the payer is entirely offshore with no Thai establishment, no withholding obligation arises, so the recipient must file and pay the full amount personally — set the cash aside in advance.

On transfer day at the Land Office there is a transfer fee, either specific business tax or stamp duty, and withholding income tax calculated from the appraised value and years of ownership. An individual seller may elect whether to include the sale proceeds in the PND.90 computation, subject to conditions — run both calculations before choosing.

At the Land Office the parties pay a transfer fee, withholding income tax computed from the appraised value and the holding period, and either stamp duty or specific business tax where the property has been held for less than five years. Individual sellers may in defined cases elect not to include the gain in the year end return. Model the numbers before agreeing a price because the withholding is usually higher than sellers expect.

It certifies Thai tax residence so a foreign tax authority will apply treaty rates instead of full domestic withholding. It is applied for at the Revenue Department with proof of presence, filed returns and income documents, and it is normally paired with an R.O.21 confirming tax actually paid in Thailand. Allow several weeks, so apply before the foreign deadline, not after it.

It evidences to a foreign tax authority that tax was paid in Thailand so you can claim a credit or refund there. Apply at the area revenue office that receives your return, attaching proof of remittance, withholding certificates from the payer and the underlying contracts. Allow extra time if the receiving country wants an English version or legalisation.

The seller faces withholding income tax calculated at the Land Office on the appraised value, transfer fees, and either stamp duty or specific business tax depending on the holding period. To remit funds you need proof of source such as the sale agreement, tax receipts and the bank's prescribed foreign exchange form. Supporting foreign documents need certified translation.

Consider Section 70 together with the applicable treaty. Where the payment is a royalty or service fee falling under Sections 40(2) to 40(8), the Thai payer must withhold and remit using form PND.54, and self-assess VAT on form PP.36 where applicable. To apply a reduced treaty rate, keep the counterparty's certificate of tax residence on file.

The Inheritance Tax Act 2015 taxes the recipient on the portion exceeding one hundred million baht per estate, at rates that differ for ascendants, descendants and other persons. Lifetime gifts are treated under Revenue Code income rules with specific exemption thresholds. For foreign assets, the recipient's residence status and nationality also matter.