PanPhonDeeThe dividend that reaches your account is usually less than the announced amount, because 10% tax is withheld first. The rest is what you actually receive.
What the 10% withholding means
A company that pays a dividend must withhold tax at source before transferring the money. The 10% rate applies to Thai-resident individuals receiving the dividend. Example: a THB 10,000 dividend has THB 1,000 withheld and THB 9,000 reaches the account.
If you do nothing
In many cases the 10% withheld counts as the full tax on that dividend, so you do not need to add it to your annual tax return. Your situation can differ, so check with the Thai Revenue Department or a tax professional before you decide.
When combining on your return can make sense
Combining can help when your total income for the year is low. The tax you calculate may then be less than the amount withheld, and you can claim the difference back. If the company has already paid corporate income tax, you may also get a tax credit on that part.
Three things to remember
- Cash received = announced amount × 90%.
- In most cases the 10% withheld already counts as your tax.
- If your other income is low, check whether combining your return gives you money back.
FAQ
What is a tax credit?
It is the part of corporate income tax the company has already paid. If you combine the dividend on your return, you can use it against your own tax. The Thai page dividend tax credit explains the principle.
Does this apply to dividends from several companies?
If you combine, include all dividends received in the same year. Each company withholds its 10% separately.
This article explains general principles only and is not tax advice. Rates and rules can change from year to year. Check rd.go.th before you decide.
Estimate your tax credit from dividends
The calculator on the site (Thai) takes your dividend and other income and shows whether combining your return pays off. It runs on your device.
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For information only. Not investment advice.