In Thailand, the Revenue Department requires all registered companies (including foreign persons and companies doing business from Thailand) to withhold tax on a range of payments. For Thailand, you use the Extended Withholding Tax solution.

For generic information about customizing Extended Withholding Tax, see Settings for Extended Withholding Tax: Overview.

• Recipient type – allows you to group your vendors according to what type of withholding tax return form you need to fill out.
• Income type – allows you to classify the withholding tax items according to which section of the Thai Revenue Code they fall, so that the system you can fill out the withholding tax returns correctly.
• Withholding tax type
• Withholding tax code

• When you enter a vendor payment, the system only withholds tax if the payment amount is in excess of the minimum tax base.
• The system withholds tax using the different paid conditions common in Thailand.
• When you enter a partial vendor payment, the system automatically deducts any cash discounts before it applies withholding tax.
• When you enter a vendor payment denominated in foreign currency, the system translates the withholding tax amount using the exchange rate published by the Bank of Thailand – no matter what exchange rate you use to translate the other line items.

You create withholding tax certificates for your vendors as and when required.

At the end of each month, you are required to submit a number of withholding tax returns to the Revenue Department and to remit the tax that you have withheld. For more information, see Generic Withholding Tax Reporting.