The company has to pay the consultant fees to the persons residing abroad. By providing the service, the contractor does not come to operate in Thailand. Do I have to withhold the tax or not?
Panwa : Contractors who are natural persons and foreigners receive wages. It can be classified as assessable income under Section 40 (2) of the Revenue Code. When such person provides services abroad Such person is not obliged to pay personal income tax under Section 41 paragraph two of the Revenue Code. The payer is therefore not obliged to withhold tax at source, regardless of whether he is a resident of the country in which the double taxation treaty is signed.
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