We have inquiries regarding withholding tax as below, please advise.

1) How do we treat WHT that is deducted by our customers from our sales invoices?

2) Can you tell me how we must treat this in our bookkeeping?

3) And do we need to pay this amount to the tax authorities as well?

Panwa: 1) The company needs to receive the WHT certificate for the amount that was already deducted by the customer.

 2) The nature of WHT that was withheld by customer will be assets in which you can record under account “tax deduct at source” or “prepaid corporate income tax”.

 3) No, your company does not need to pay this amount to the tax authorities. The person who is liable to pay this tax to the tax authorities is the payer (your customer who deducted the WHT from your company) and your company can use the amount of WHT that was withheld by the customer to deduct the corporate income tax of your company at the end of year (in case the business performance of company is profit and need to pay tax). You need to request the withholding tax certificate from them (as mentioned on item 1.) to keep as evidence for reference to the amount that was withheld. 

Anyways, if you need further assistance for monthly tax filing, half-year tax filing and doing yearly tax, kindly note that we could assist for such click here.

For more information, please feel free to contact us:
Phone: +66 2 933 9000
Fax: +66 2 933 6120
Email: bkk@panwa.co.th