Chirayuthchai TraisaengsatheanStrategic Finance for Property Development
THEN

Commission: WHT and gross-up

Calculate WHT, VAT or PP 36, gross-up and CAC on commission paid to Thai and foreign recipients, by recipient type

Related reading Real Estate Project Accounting Handbook · Part 5
The figures entered are hypothetical examples. Every field can be edited.

The recipient's status determines the tax, not the name of the item
THB
% of unit price
Select only once confirmed from PP 20
% default 3
% not the statutory rate; see assumptions
Net contracts require a gross-up
If any condition is not met, use the normal rate
% default 15 (Section 70)
% default 0; check the treaty for each country
THB per USD; use the Bank of Thailand (BOT) reference rate on the payment date
THB, estimated; treated as an expense and not included in CAC
THB
THB; default 60,000 + social security 10,500 (maximum wage 17,500)
% default 7; check the rate on the payment date
Default is not claimable, because sales of condominium units are subject to SBT. Select only for expenses of a business in the VAT system
Cost to obtain a contract (CAC)–
Calculation
Commission per contract–
Income before tax (base)–
WHT–
VAT on the tax invoice or PP 36–
Amount paid / transferred to recipient–
Transfer amount in USD equivalent–
Tax remitted by the company–
CAC above the contract amount–
Total cost to the company (including fees)–
Form to be filed–

Results are calculations for learning purposes only. The figures entered are hypothetical examples, not real project data, and are not investment or tax advice.

How to use

  1. Select the recipient type, then enter the unit price and commission rate
  2. Enter the conditions for that recipient. Every rate can be edited
  3. View the WHT, VAT or PP 36, transfer amount and CAC to be recorded per unit

Assumptions and limitations

  • Thai juristic person: WHT of 3% on the base before VAT. If VAT-registered, the service fee plus VAT per the tax invoice. File PND 53
  • Individual: commission is income under Section 40(2), per Section 50(1). The payer must withhold using the progressive-rate method. The 3% rate is the policy of some companies. If less is withheld than the calculated amount, the payer is jointly liable under Section 54. Have your accounting firm confirm the withholding method and form before use
  • Foreign: WHT of 15% under Section 70, filed on PND 54. A treaty can reduce it where there is a COR for the year of payment, no PE and the PPT is passed. PP 36 at 7% is filed in every case; a treaty cannot reduce it. The PP 36 base is the amount before tax
  • Gross-up: income before tax = amount the recipient must receive ÷ (1 − WHT rate). WHT borne on the recipient's behalf is deductible only where the contract clearly states that the payer bears the tax
  • Employee: income under Section 40(1); calculate the incremental tax on an annual basis, deducting expenses of 50% up to THB 100,000 and applying the progressive rate table. The actual amount must be calculated from that month's payroll
  • VAT on the tax invoice and PP 36 on commission for selling condominium units cannot be credited, because sales of condominium units are subject to SBT, so it is included in CAC. Bank fees are an expense and are not included in CAC
This page is not tax advice. For high-value items, recipients whose status is unclear, or related parties, have your accounting firm or tax adviser confirm before paying

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