Articles | Updated 10 September 2026
Withholding tax rates table: 1%, 2%, 3%, 5% with worked examples
Withholding tax is calculated on the value of goods or services before VAT, and the rate depends on the type of payment, not the type of recipient. This article is a short table to check when you pay, plus three worked examples of cases stores run into often.
Common rates
- 1% for transport fees paid to transport operators (excluding postal services and airlines), and interest paid by juristic persons
- 2% for advertising
- 3% for general services, contract work, repairs, installation, and professional fees such as accounting and legal fees
- 5% for rent on buildings, land, space, and machinery, and prize money from lucky draws
- 10% for dividends paid to individuals
3 rules to remember
- Withhold when a single payment is 1,000 THB or more, or when the total under one contract reaches 1,000 THB
- Calculate on the value before VAT, not the bill total
- No withholding on goods. If one bill includes both goods and services, withhold only on the service portion
Example 1: hiring an air conditioner repair technician
The repair fee is 10,000 THB. The technician is VAT-registered, so the bill includes 700 THB of VAT, for a total of 10,700 THB. Withholding 3% of 10,000 THB is 300 THB, so you actually pay 10,400 THB and give the technician a 50 Tawi certificate for 300 THB. If the technician is an individual, file P.N.D.3; if it's a company, file P.N.D.53.
Example 2: monthly store rent
Rent is 25,000 THB a month. The landlord is an individual who isn't VAT-registered, so you withhold 5%, which is 1,250 THB, and actually pay 23,750 THB. File P.N.D.3 every month, and the landlord gets a 1,250 THB tax credit to use when filing their annual income tax.
Example 3: buying goods with installation
You buy shelving for 40,000 THB plus 3,000 THB for installation on the same bill. There's no withholding on the goods; withhold 3% on the installation, which is 90 THB. If the seller includes installation in the product price without listing it separately, it counts as a sale of goods and no withholding is needed.
How to do it in the app
In GORINY, you choose the income type when paying a supplier. The system calculates from the pre-VAT value, prints the certificate, and totals the month into P.N.D.3 or P.N.D.53, with a file for import into RD Prep. The recipient type is pulled from your contact records, so you don't have to select it again.
Frequently asked questions
- I paid a 900 THB service fee. Do I need to withhold?
- No, because it's under 1,000 THB. But if it's an ongoing contract that totals more than 1,000 THB over the year, you must withhold from the first payment.
- What if I forgot to withhold?
- The payer still has to remit that tax themselves, filing with a surcharge if past the deadline, and can recover it from the recipient as agreed.
- Is withholding tax related to VAT?
- They are separate taxes. VAT is paid by the buyer on top of the price and remitted by the seller, while withholding tax is income tax that the payer deducts from the recipient in advance. So one bill can have both.
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