From Bill C
My Accountant informed me that the type of contract i have with the builder requires me to with hold 3% for tax purposes....Who is liable to incurre this 3% me or my builder?
Employment Withholding
Moderators: MGV12, BKKBILL, Sometimewoodworker
This type of tax normally doesn't come into play.... unless you want to deduct the costs of construction, say if a business is involved. There is a 3% withholding tax (on the labor part of the contract), it is the responsiblity of the person you pay technically. Let's say your contract is for 1,000,000 baht and you tell your builder he will be required to pay this 3% tax. Then he would raise the cost of the contract to compensate (1,030,927) since nobody really pays this unless there is some mandate to do so. Instead of having your contractor raise the price, it is just easier to pay it yourself -- that way you know it gets paid. So this is what your accountant would and should advise.