Withholding Tax for Freelancers: Getting Credit for Tax Already Paid

Understanding Withholding Tax

When Thai companies pay freelancers, they're often required to withhold tax at source and remit it to the Revenue Department on your behalf.

Standard Withholding Rates

Income Type	Withholding Rate
Service fees (40(2))	3%
Professional fees (40(6))	3%
Contractor payments (40(7))	3%
Advertising services	2%
Transport services	1%
Rental payments	5%

How It Works

Example:

You invoice a Thai company 100,000 THB for consulting services.

Item	Amount
Invoice total	100,000 THB
Withholding tax (3%)	3,000 THB
Amount received	97,000 THB

The company sends the 3,000 THB to the Revenue Department under your tax ID.

Withholding Tax Certificates

What to Collect

Request a Withholding Tax Certificate (50 Tawi) from every client who withholds tax.

Information on the Certificate:

• Your name and tax ID
• Payer's name and tax ID
• Income amount
• Tax withheld
• Date of payment

Why It Matters

Without certificates, you cannot claim credit for tax already paid!

Claiming Your Credit

When filing your annual return:

1. Total all withholding certificates
2. Enter total on PND90 in the withholding tax section
3. Attach certificates to your filing (or keep for records if filing online)
4. Receive credit against your calculated tax liability

Refund Scenarios

If withholding tax exceeds your actual tax liability, you're entitled to a refund.

Example:

• Annual income: 500,000 THB
• Tax withheld: 15,000 THB
• Actual tax owed: 12,500 THB
• Refund due: 2,500 THB

Best Practices

1. Request certificates immediately after payment
2. Verify tax ID is correct on certificates
3. Keep copies of all certificates
4. Track monthly in a spreadsheet
5. Reconcile annually before filing

What If a Client Won't Withhold?

Some clients, especially individuals or small businesses, may not withhold tax. In these cases:

• You're responsible for reporting full income
• No withholding credit available
• You'll pay full tax at filing time

International Clients

Foreign clients typically don't withhold Thai tax. You must:

• Report full income received
• Pay tax at filing time
• No withholding credit applies