Withholding tax is a government requirement whereby the payer of an income withholds or deducts the tax from the payment and pays the tax to the authorities. This can apply to employment income, payments of interest, dividends, royalties, rent, etc. Thus, the tax is deducted before payment is made and may be refunded later depending on the circumstances.
In Thailand, withholding tax is a deduction from payments made to suppliers who provide a service. Whether the withholding tax is applicable and what rate needs to be deducted depends on the nature of the service provided.
In Exact Globe product update 402, we are happy to introduce the Thailand Withholding Tax functionality. The process starts with entering purchase invoices that include VAT and assessing the withholding tax amount upon invoice or prepayment. Then, you can easily print the Withholding Tax Certificate as a confirmation to your supplier and later submit the form P.N.D 3/P.N.D 53 to the Thai tax authority.
Taking into consideration that this is a highly demanded feature, localizations team has given the priority to include this functionality into standard Exact Globe functionality. We are also glad that the numbers of the pilot customers are growing. We will keep you posted when there are more updates on this after the pilot phase.
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