The company operates software and hardware distribution business in Thailand and has imported software from companies in 11 countries for distribution to customers with residences and location in Thailand. For the company payment of software fees to sellers in 11 countries, is the company obliged to deduct tax on assessable income paid or not and at what rate?
Panwa: Please note that for payment of software abroad, the company is obliged to withhold 15%, which at the same time, you have to check for the Double taxation agreements and policies for withholding taxes of each country. Moreover, there is a reduction in royalties as stipulated on RD code as:
Due to compensation for using computer programs or software Into nature as income under Section 40 (3) of the Revenue Code, so that the company Paid the software fee to the copyright owner company which was established under foreign law and does not operate in Thailand. According to form PND 54 with the tax deduction under Section 70 of the Revenue Code.
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