Introduction
In Thailand, a Form 50 Tawi, also known as a Withholding Tax Certificate under Section 50 bis of the Revenue Code, is an important document issued by the payer (e.g., an employer) to the recipient of income (e.g., an employee) after withholding tax at source.
This Withholding Tax Certificate serves as evidence that Withholding Tax has been deducted at source and remitted to the Revenue Department.
In this blog post we will take a look at what a Withholding Tax Certificate is and when it should be used.
Key Points
- Form 50 Tawi (Withholding Tax Certificate) is issued by employers to employees as proof that income tax has been withheld and remitted to the Revenue Department.
- Employers must issue this certificate annually by February 15 for current employees, within one month for departing employees, and immediately after tax withholding and payment to the Revenue Department.
- The certificate details total income earned, tax withheld, and social security contributions, and is necessary for filing annual tax returns.
- Form 50 Tawi can be used to verify tax payments, request tax refunds, and may be required for loan applications.
- Employers who fail to issue the certificate on time may face fines up to 2,000 THB per violation and potential audits by the Revenue Department.
What is a Withholding Tax Certificate (Form 50 Tawi)
Employees of companies in Thailand are subject to Withholding Tax being deducted from their salary. When paying an employee’s salary each month, the employer must withhold personal income tax and submit it to the Thai Revenue Department by the 7th of the following month (or the 15th if filed online).
At the end of the year, or upon an employee leaving the company, the employer must provide a document called, a Withholding Tax Certificate under Section 50 bis of the Revenue Code (Form 50 Tawi). This document shows the total income earned from that employer, the total tax withheld, and the total social security contributions deducted for that year.
When is a Withholding Tax Certificate Issued?
There are 3 scenarios for when a Withholding Tax Certificate will be issued:
Employees who are currently employed
For employees receiving a salary from a company, the employer must issue a withholding tax certificate (Form 50 Tawi) by February 15 of the following year. For example, the Form 50 Tawi for taxes withheld in 2024 would be issued on February 15, 2025.
Employees who left their job during the year
When an employee leaves the company, the former employer must issue the Withholding Tax Certificate within one month of the departure date.
For other forms of payment
When making payments for services, such as freelancers or contractors, the Withholding Tax Certificate must be issued immediately after the tax has been withheld.
When issuing the Form 50 Tawi, the employer will provide 2 copies. The first copy will be labeled as ‘For the recipient of the withholding tax to attach with the tax return filing.
Read Also : How to Issue a Tax Invoice/Receipt in Thailand
What is a Form 50 Tawi Used For?
A Withholding Tax Certificate is an important document and serves a range of important uses, including:
Verify That Withholding Tax has been Paid
Form 50 Tawi can be used as evidence proving that the applicant’s income tax has been withheld and paid.
Form 50 Tawi can also be used to show the source and amount of income earned by the income earner.
Tax Return Preparation
Form 50 Tawi is required for filing annual tax returns (PND 90 or PND 91) as it provides details of the income earned and the tax withheld. This information helps calculate the total tax payable or any potential refund
Request a Tax Refund
If excess tax has been withheld, the income earner can use Form 50 Tawi to request a refund for the overpaid tax from the Revenue Department.
Applying for Loans or Other Types of Financing
Banks or financial institutions may sometimes require Form 50 Tawi for loan applications or other financial transactions.
What Happens If My Withholding Tax Certificate Contains the Wrong Info?
If your Form 50 Tawi shows an incorrect tax amount or has incorrect information, here are the steps you should take:
Request a Revised Form
Ask the employer to issue a revised Form 50 Tawi with the correct tax amount. This may involve providing documentation to support the correction.
Replacement Form
If the original form is lost or damaged, you can request a replacement form from the employer. The employer should mark it as a “Replacement” and sign it to certify its authenticity.
Notify the Revenue Department
Inform the Revenue Department about the issue and provide them with the corrected Form 50 Tawi.
What are the Penalties for Failing to Issue a Form 50 Tawi?
If an employer fails to issue a Form 50 Tawi or delays issuing it beyond the deadline, they may face:
Potential audits or scrutiny from the Revenue Department, especially if withholding tax payments are inconsistent, or
A fine of up to 2,000 THB per violation (per missing or delayed form).
Disclaimer
This information is provided for general educational purposes only and should not be construed as legal, tax, or financial advice.
