Withholding tax rates in Thailand: a by-payment-type reference for PND 3 and PND 53

Withholding tax in Thailand has no single rate. The rate depends on what is being paid, who receives it and which form reports it. Payments to domestic individuals are reported on Form PND 3, and payments to domestic juristic persons (companies, partnerships and other registered entities) on Form PND 53. Services and professional fees to individuals are generally withheld at 3 percent under PND 3, property rent paid to corporate entities at 5 percent under PND 53, and dividends at 10 percent regardless of recipient type. The payment type, the recipient type and the form all have to match, and a return with the right rate on the wrong form is still wrong.

Key takeaways

About the Author: This guide is produced by Settlr Global, the operating arm of WOWS Global, a Singapore-incorporated corporate advisory and investment banking group. Settlr Global's tax team files withholding tax returns, including PND 3 and PND 53, as part of its ongoing accounting and compliance work for foreign-owned and Thai-owned businesses operating in Thailand.

What is the official definition and scope of PND 3 and PND 53?

PND 3 and PND 53 are the two monthly withholding tax returns that many businesses in Thailand file repeatedly. Thailand's Revenue Department defines Form PND 3 as the return for withholding tax on payments to domestic individuals[1]. Form PND 53 is the equivalent return for payments to domestic juristic persons, meaning Thai-registered companies, partnerships and other corporate entities[2].

The recipient's legal status, more than the service itself, usually decides which form applies. A company paying a freelance graphic designer files PND 3. The same company paying a design agency set up as a limited company files PND 53. The payment category is the same, but the form is different.

A finance team that assumes "services always mean PND 3" will misfile every invoice from a corporate vendor. Check the recipient's legal status first and the service type second. Businesses managing this manually should record each recipient's classification during vendor onboarding, so it is already settled by the time the monthly filing comes around.

What are the current withholding tax rates in Thailand by payment type?

The withholding rate depends on the payment category. Under Revenue Department rules, the general rate for services and professional fees paid to individuals is 3 percent under PND 3[3][1]. Property rent paid to domestic juristic persons is withheld at 5 percent under PND 53[3].

Dividends follow their own rules. The withholding rate is 10 percent[3], and dividends paid to individuals are reported on Form PND 2 rather than PND 3[4]. Dividends paid to Thai companies may be exempt from withholding under certain conditions[3].

These are the generally applicable figures, so confirm actual obligations against the specific transaction and current Revenue Department guidance. A company that treats the table as static will eventually misfile. Businesses running payroll and vendor payments at volume often formalize this process early, and a Thailand accounting firm retainer largely exists to keep the table current against each month's actual transaction mix.

Which specific payment categories carry distinct withholding obligations?

Misclassifying a payment is a common error. Services, rent, royalties and interest each have their own category and treatment, and a single vendor relationship can span more than one category on the same invoice.

Services and professional fees (consulting, freelance work and professional service invoices to individuals) are generally withheld at 3 percent under PND 3. Rent, which covers office leases, equipment rental and property rent paid to juristic persons, is generally withheld at 5 percent under PND 53. Dividends to shareholders are generally withheld at 10 percent regardless of recipient type. Interest on loans and royalty payments each carry specific rates under the Revenue Code and are treated differently from services and rent[2].

An invoice that combines a service fee and a disbursed rental charge should generally be split by category for withholding, not withheld at a single blended rate. Manual bookkeeping often gets this wrong, which is one reason founders running their own books eventually move to a structured accounting and bookkeeping setup instead of reconciling categories invoice by invoice.

What are the current filing deadlines and compliance dates for PND 3 and PND 53?

Under Revenue Department rules, both PND 3 and PND 53 must be filed and paid by the 7th of the month following the payment for paper submissions[2], or by the 15th when filed online. The online date comes from a Ministry of Finance extension that covers returns due up to 31 January 2027, so check for a renewal after that[7].

The window is short. A company that pays a vendor on the last day of the month has roughly one week to classify the payment, calculate the correct rate, complete the form and submit payment. Missing the deadline generally triggers penalties under the Revenue Code, including a surcharge of 1.5 percent per month or part of a month on the unpaid tax[8], so the cost grows the longer the filing stays outstanding.

Businesses with monthly payment volume across several vendor types should put the withholding filing in the same calendar cycle as payroll and VAT instead of treating it as a separate task. A Thailand tax calendar keeps these deadlines visible across the full compliance year, and our tax guides and calendar resources list the dates.

Are there any recent changes to Thailand's withholding tax system?

The rate table above can change. Ministerial Regulation No. 389 cut the withholding rate to 1 percent for payments processed through the e-Withholding Tax (e-WHT) system from 1 January 2023 to 31 December 2025[9][10]. On 16 June 2026 the Thai Cabinet approved extending the 1 percent rate from 1 January 2026 to 31 December 2027[11]. Ministerial Regulation No. 402 made that extension law when it was published in the Royal Gazette on 9 October 2026[6]. The reduced rate replaces the 5, 3 and 2 percent rates, so the 10 percent dividend rate is unchanged[11]. It applies only to payments routed through the e-WHT system with a participating bank[3][1].

The aim is to reward businesses that move withholding tax payment onto the electronic system, which cuts the cost of preparing and storing documents and improves cash flow[11]. Under e-WHT the bank deducts and remits the tax and reports the payment, so the payer does not file PND 3 or PND 53 or issue a certificate for that payment[5][9]. Companies that file PND 3 and PND 53 themselves, on paper or online, do not qualify for the reduced electronic rate.

For a company processing a high volume of service payments every month, the gap between a 3 percent rate and a 1 percent e-WHT rate affects cash flow directly, since the withheld amount is a prepayment of the recipient's own tax liability, not a cost to the payer. Migrating to e-WHT is generally worth evaluating as part of a broader payroll setup in Thailand, particularly for companies already running cloud-based accounting.

What is a withholding tax certificate and why does it matter?

A withholding tax certificate is the document a payer issues to a recipient confirming the amount withheld and remitted to the Revenue Department on their behalf. The recipient then uses that certificate to claim a credit against their own annual tax liability[12].

A vendor who doesn't receive a correct withholding tax certificate cannot properly file their own annual return. That strains the business relationship as well as leaving a compliance gap for the payer. Certificates should be issued consistently, matched to the correct form and rate and retained alongside the underlying PND 3 or PND 53 filing for audit purposes.

Frequently asked questions

What is the difference between PND 3 and PND 53?

PND 3 is used for withholding tax on payments to domestic individuals. PND 53 is used for payments to domestic juristic persons. The form depends on the recipient's legal status, not the payment type.

What is the withholding tax rate for services in Thailand?

Services and professional fees paid to individuals are generally subject to a 3 percent withholding tax rate under PND 3, per current Revenue Department guidance.

What is the withholding tax rate for rent in Thailand?

Property rent paid to a domestic juristic person is generally subject to a 5 percent withholding tax rate under PND 53.

What is the withholding tax rate on dividends in Thailand?

Dividends are generally subject to a 10 percent withholding tax rate. Dividends paid to individuals are reported on PND 2, and some dividends paid to Thai companies are exempt.

When are PND 3 and PND 53 due?

Both forms are generally due by the 7th of the month following the payment for paper filing, or the 15th when filed online, under current Revenue Department rules.

Does using the e-Withholding Tax system change the rate?

Yes. Payments processed through the e-Withholding Tax system qualify for a reduced 1 percent rate until 31 December 2027 under Ministerial Regulation No. 402. That is lower than the standard 5, 3 and 2 percent rates for the same payment categories.

Who needs to issue a withholding tax certificate?

Any payer who withholds tax on a payment should issue a withholding tax certificate to the recipient, confirming the amount withheld and remitted, so the recipient can claim the credit on their own return. Payments through the e-Withholding Tax system are the exception, because the bank's electronic record replaces the certificate.

About Settlr Global

Settlr Global is the operating arm of WOWS Global, a Singapore-incorporated corporate advisory and investment banking group, and an all-in-one platform for company setup, accounting and tax, payroll, visas and Employer of Record in Thailand. It serves foreign-owned and Thai-owned businesses through a single team, so clients don't have to coordinate separate local agencies for each function. Its tax services cover VAT, corporate income tax and withholding tax filings including PND 3 and PND 53, backed by leadership with 15+ years of regional experience across Southeast Asia. For companies without a Thai entity, Settlr Global also offers EOR services with a first hire in about 2 days, available from a single employee.

PND 3 and PND 53 filings are monthly obligations tied to tight deadlines, and misclassifying a payment category or missing the deadline can trigger Revenue Department penalties. Businesses that want to manage this as part of an ongoing accounting engagement rather than handling it in-house can contact Settlr Global at https://settlrglobal.com/.

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