WHT, Most complicated type of TAX

[Eaglekott]

Hi

I have soem questions about With Holding Tax, WHT, What products is affected by WHT and when?

If I purchases software from USA, and resell to my client here, is that due to WHT? I have been asking a few accountants and some say yes, some no. Some say 15% some 5% some 3%.

If I host my own Cloud Server and then selling space on this server to my Clients, is that due to WHT? Same here different answers from all. 0% or 3%

If I resell Cloud space hosted in US, is that due to WHT? Here all says yes.. 15% or 5%

As far as i believe the WHT should be on services like consulting and developing a software, but not when reselling it?

Anyone who knows for sure how this works?

[onthemoon]

I agree with you that it is the most complicated kind of tax. But sorry, I don't understand it either.

[yankee99]

Buying software and selling it you would be classified as trading (retail sales) i dont see why wht should apply.

My understanding is when a company is working on your behalf is when wht is collected. In my experience the company i am doing business with will show the wht on their invoice. I take the papers to my accountant and they prepare several documents to return to the other company.

The rate will vary depending on the category. This is not something you can do yourself unless you can read and write thai.

[Eaglekott]

We tried to talk to the Revenue department and they say that there is WHT on software caused by the Copyright. They want us to write a letter to them so can get an official answer.

[Gulfsailor]

Retail software no wht. But if you purchase from abroad the seller overseas gets charged 15% as they are liable for tax on revenue made inside Thailand. Of course there is no way for Thai customs to get that from the seller abroad, so they instructed the bank which you make the transfer through to add that and pass it on to them. It is then up to you to get that back from the overseas seller. Good luck with that!

[gtm2k]

Eaglekott

Yes, wht is applicable on sales of svcs only.

I own a software business in th too and we have clients abroad too, for which all the revenue comes to th

Heres the basic rule -

If ur client and service provided is outside thailand ,its a pure "proforma invoice" sale without any vat on it.

When u get paid, u get paid without any deductions.however, u will report the revenue made in monthly pp30 filing under the non-vat revenue section. So until this step, there is no wht implication.

In the case ur client is also in thailand, then u will get a 3% wht deduction.

All the wht deduction u recv can be offset against ur corporate income tax while making annual returns.

On the side of delivery of services -

Now ,if u have hired an independent consultant (not employee) who is based in US to serve ur clients, there is no WHT implication while paying him.

But if this guy is based in thailand and is remotely assisting ur clients, then there are 2 conditions while paying this consultant

If thai national - then 3% wht deduction

If a foreign national - then 15% wht deduction

This is pretty much how it works and its verified info as rd dept advised me these matters when i was audited by them in my first year of operation back in 2009

Pm me if u need any more info !

Cheers

Gtm

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