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2.1ÌýÌýÌýÌý Withholding of income tax

In general, the purpose of withholding tax is to collect income tax in advance from payment of assessable income and, in the meantime, reduce the tax obligation of taxpayer at the year end. In addition, it also generates revenue for the government to run the country.

In terms of employment, the withholding amounts are generally deducted from payroll paid to employees, which is deemed as assessable income under Thai tax law. As such, the employees are taxpayers while the employers are tax payees for this withholding tax purpose.

The employers are required to deduct withholding tax when making payment of income to their employees in accordance with the rules and regulations determined by tax law and remit the same electronically to the Revenue Department on a monthly basis within 15 days from the end of the month that the withholding tax is made.

Failure to file the withholding tax deduction, the employers shall be subject to surcharge at the rate of 1.5% per month or fraction thereof of the tax payable and