<p class="PDq2pG_selectionAnchorContainer" data-start="223" data-end="392">If you&rsquo;re running a business in Thailand&mdash;whether it&rsquo;s e-commerce, services, or even working with freelancers&mdash;withholding tax is one of those things you can&rsquo;t ignore.

<p data-start="394" data-end="545">A lot of business owners focus on sales, marketing, or operations, but tax compliance (especially withholding tax) is where many small mistakes happen.

<p data-start="547" data-end="772">For those unfamiliar, withholding tax (WHT) is basically a system where you deduct tax before paying your supplier or service provider, and then submit it to the Revenue Department.

<p data-start="774" data-end="821">Sounds simple, but here&rsquo;s where it gets tricky:

<ul data-start="823" data-end="1342">
<li data-section-id="19ck8gn" data-start="823" data-end="942">Different payments = different tax rates (e.g. services, rent, dividends) </li>
<li data-section-id="w8f2xe" data-start="943" data-end="1091">Some common rates:
<ul data-start="968" data-end="1091">
<li data-section-id="p4ki89" data-start="968" data-end="995">Services: around 3%</li>
<li data-section-id="ja43bg" data-start="998" data-end="1021">Rent: around 5%</li>
<li data-section-id="12xq4aq" data-start="1024" data-end="1091">Dividends: around 10% </li>
</ul>
</li>
<li data-section-id="ym2jhm" data-start="1092" data-end="1225">Payments to foreign companies can go up to 15%, depending on structure and tax treaties </li>
<li data-section-id="tm9966" data-start="1226" data-end="1342">You usually need to file within 7 days of the next month after payment </li>
</ul>
<p data-start="1344" data-end="1370">The problem is, many SMEs:

<ul data-start="1371" data-end="1499">
<li data-section-id="17ke8ym" data-start="1371" data-end="1399">Use the wrong tax rate</li>
<li data-section-id="ubl9bd" data-start="1400" data-end="1466">Skip withholding on smaller invoices (thinking it doesn&rsquo;t apply)</li>
<li data-section-id="1vyekl3" data-start="1467" data-end="1499">File using the wrong forms</li>
</ul>
<p data-start="1501" data-end="1609">These are actually some of the most common audit issues in Thailand.

<p data-start="1611" data-end="1756">And yes&mdash;penalties are real. Late or incorrect filings can lead to fines and additional charges over time.

<p data-start="1763" data-end="1877">If you&rsquo;re dealing with suppliers, freelancers, or cross-border payments, it&rsquo;s worth understanding this properly.

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