Aspect One
Withholding tax (หัก ณ ที่จ่าย) is one of the most frequent monthly compliance tasks for Thai SMEs—and one of the easiest to get wrong. A missed form or wrong rate can trigger penalties long before annual corporate tax is due.
This guide is practical, not legal advice. Confirm current rates, forms, and deadlines with the Revenue Department or your accountant.
What withholding tax is
When your business pays certain types of income, you must deduct tax at source, issue a withholding certificate to the payee, and remit the tax to the Revenue Department on a fixed schedule—typically by the 7th (or 15th for e-filing) of the following month.
Common payments and forms
| Payment type | Typical form | Notes |
|---|---|---|
| Salaries and wages | PND.1 | Employer withholds from employees |
| Services to individuals | PND.3 | Freelancers, consultants, contractors |
| Services to companies | PND.53 | Corporate service providers |
| Rent (commercial) | PND.3 or PND.53 | Depends on lessor type |
| Professional fees | PND.3 or PND.53 | Legal, accounting, design, etc. |
Rates vary by payment type and recipient status (individual vs company, resident vs non-resident). Your accountant should confirm the correct rate for each transaction.
Monthly rhythm
- Identify all payments subject to withholding during the month
- Deduct tax at the correct rate
- Issue withholding certificates to payees
- File the appropriate PND form and remit tax by the deadline
- Keep payment proofs and certificates organized for audit
Phuket businesses commonly withhold on shop rent, marketing agency fees, freelance content work, and contractor maintenance. Tourism operators paying overseas service providers may have additional obligations—confirm with current guidance.
Common mistakes
- Paying rent or contractors without withholding
- Using the wrong form (PND.3 vs PND.53)
- Missing the monthly filing deadline
- Not issuing certificates to payees
- Mixing personal payments through the company account
Withholding tax checklist
- List all recurring payees (landlord, freelancers, agencies)
- Confirm correct form and rate for each payment type
- Set calendar reminders for monthly PND deadlines
- Issue certificates when tax is withheld
- Store certificates with bank payment records
- Reconcile withheld amounts before filing
Related reading: VAT registration in Thailand and tourism tax planning in Phuket.
Aspect One helps SMEs stay on top of monthly withholding, VAT, and corporate tax filings. Explore tax planning and compliance and bookkeeping and reporting, or contact us.
