5% Tax On Office Rental

[Leppy]

i just formed a new ltd. co and my accountant just told me that i need to withhold 5% of my monthly office rental payment to my landlord and give that to the government in taxes or something. but my landlord is not very happy with that because she's losing 5% of the amount and she's being very upset and told me that i have to take the responsibility and pay the 5% myself.

anyone been through a similar thing? who needs to pay that 5%, me or my landlord?

[Chang_paarp]

It is explained in this thread; http://www.thaivisa.com/forum/index.php?showtopic=174002

You are acting as a tax collector, and give you landlord a reciept for the tax you collect on their behalf.

[Irene]

anyone been through a similar thing? who needs to pay that 5%, me or my landlord?

The company has the duty to deduct the 5% from rental and account the amount to the Revenue within 7days after the end of the month. Failure to do so could cause your company to pay for that shortfall and subject to a surcharge at 1.5% per month on the shortfall. A withholding tax certificate needs to be given to the landlord.

The landlord can use this 5% certificate as a tax credit against his total tax payable at the end of the year.