Hi,

 

My thai Company sold land on 2017, The Agent received the deposit from the buyer, deducted their commision plus VAT and sent me the balance.

Now 2 years later my accountants now say I have to pay Withholding tax on the agents Commision. Is this the normal procedure ?

 

ie So I now have to pay 3% on their 5%.... (not a fortune but about 20k thh on total)

 

However IF the butyer had paid me direct, I believe I would have paid the Agent their Commision less Withholding tax ...

 

Anyone got any idea on the matter cos I seem to be going round in circles with the Agent and my Accountants currently.

 

Cheers

Cliffy

Your company is completely responsible. The original invoice from the agent should have shown 7 per cent VAT and then less a 3 percent deduction for WHT. Your company should then have issued a WHT form to the agent and paid the witheld money to the revenue office.

 

Your company did not do that, so effectively the agent took 3 per cent of your money. It is the responsibility of the company to withhold tax, however, so it's time to quietly pay up.

 

You may also have to pay a late fee of 200 baht and penalty interest of 1.5 per cent a month.

Yeh thats my thoughts as well Mr BlackCab, cheers !

Nice little earner 1.5% per month....