Withholding Tax on E-Commerce

July 11, 2017

The Revenue Department issued a draft bill which would, if enacted, levy withholding tax for online trading of goods and service as well as money-transfer service. The law is intended to take effect within the current military-led regime’s tenure.

Currently, e-commerce operators that sell goods and service by an online system are required to pay tax just in the same way as all other operators in Thailand. However, enforcement of such tax laws is challenging for government authorities in the globalized internet business world and internet operators are often invisible for the tax authorities.

Under the prospective new law, operators outside of Thailand who conduct transactions for sale and purchase of goods in Thailand or money-transfer service for consumers in Thailand, will be required to pay withholding tax (among other kinds of taxes).

The financial institution handling the transaction will be delegated the authority to collect withholding tax on behalf of the Revenue Department. Then, the financial institution shall deduct 5% of the amount as withholding tax and remit the tax to the Revenue Department.

A screenshot of a cell phone

The Revenue Department lists the following types of e-businesses:

1. Catalog website
2. e-Shopping e.g. Lazada, 11Street, Shopee, Kaidee
3. e-Auction
4. Community web e.g.
5. e-Market Place / Shopping mall e.g. Central Online
6. Stock Photo
7. Google AdSense
8. SEO (Search Engine Optimization)
9. Affiliate Marketing
10. Game Online

Please feel free to contact us if you have any inquiries regarding the above: [email protected]


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