PND 3 & PND 53 in Thailand: Complete Guide for Odoo Users

Thailand’s tax system requires companies to regularly file specific forms when making payments to individuals or other businesses. Two of the most essential forms in this process are PND 3 and PND 53 both related to withholding tax (WHT).

Many companies, especially those using ERP systems like Odoo, are looking for better ways to automate this process, reduce manual errors, and stay compliant with Thai Revenue Department regulations.

This blog explains what PND 3 and PND 53 are, who needs to file them, and how you can manage the process efficiently within Odoo using Thai localization.

Understanding Withholding Tax in Thailand

In Thailand, businesses are legally required to deduct a percentage of withholding tax from certain payments made to individuals or companies. This tax is withheld at the source and submitted directly to the Thai Revenue Department.

The party receiving the payment can later claim this amount as a tax credit when filing their own returns.

To ensure transparency and proper reporting, Thai law requires companies to file PND 3 and PND 53 reports every month that detail these withholding amounts.

What is PND 3?

PND 3 is a tax form that must be submitted when a company makes payments to individuals, such as:

• Freelancers
• Consultants
• Contractors (non-employees)

The tax rate generally ranges between 3% and 5%, depending on the nature of the service provided.

Example:

You hire a Thai freelance graphic designer and agree to pay them 10,000 THB for a one-time project. Based on Thai tax rules, you must deduct 3% WHT before payment:

• Total Amount: 10,000 THB
• Withholding (3%): 300 THB
• You pay the freelancer: 9,700 THB
• You submit 300 THB to the government via PND 3

What is PND 53?

PND 53 is similar to PND 3 but applies when a company pays another legal entity or registered business for services or rental fees.

These include:

• IT service providers
• Maintenance companies
• Advertising firms
• Consultants with a company registered name

Example:

You receive an invoice from a local IT company for 20,000 THB. The WHT for this type of service is 3%:

• Total Invoice: 20,000 THB
• Withholding (3%): 600 THB
• You pay the vendor: 19,400 THB
• You submit 600 THB to the government via PND 53

Who Needs to File These Reports?

Every company operating in Thailand that makes qualifying payments to individuals or companies must submit these reports every month, even if no WHT was deducted that month.

Filing deadlines:

• Paper submission: By the 7th of the following month
• Electronic submission: Extended to the 15th of the following month

Non-compliance can result in penalties or fines from the Thai Revenue Department.

How Odoo Helps with PND 3 & PND 53 Reporting

With Odoo’s Thai Localization Module (l10n_th) installed, the process becomes much easier to manage. The module includes:

• Pre-configured withholding tax rates (1%, 3%, 5%)
• Localized Chart of Accounts
• Default tax and payable accounts for WHT
• Ready-made structure for tax reporting

You can accurately apply WHT on every vendor bill and track liabilities throughout the month.

Practical Workflow in Odoo:

1. Install Thai Localization

Go to Apps → Search “l10n_th” → Install. This adds Thai CoA and WHT taxes automatically.

2. Apply WHT on Vendor Bills

When entering a vendor bill:

• Add your supplier and line items.
• Select the correct WHT rate (e.g., 3%) under the Taxes field.
• Odoo will automatically deduct the WHT amount from the bill total.

3. Track Withholding Tax Payables

WHT amounts are tracked under the Withholding Tax Payable account.
You can view the total WHT liability at any time for easy filing.

4. Pay the WHT to the Revenue Department

At month-end:

• Go to Accounting → Payments → Create Payment
• Set the Partner as “Revenue Department”
• Amount = Total WHT collected for the month
• Destination Account = Withholding Tax Payable
• Confirm and post the payment

5. Export Data for PND 3 & 53 Reports

While Odoo does not generate the official PND forms directly, you can:

• Export WHT data from reporting views
• Customize WHT report templates (using Odoo Studio or custom modules)
• Print or create PDF WHT certificates

Benefits of Managing PND 3/53 in Odoo

✔ Eliminates manual errors from Excel
✔ Auto-calculates withholding at the correct rate
✔ Provides clear monthly WHT summaries
✔ Ensures compliance with Thai tax law
✔ Allows WHT certificate generation for suppliers
✔ Saves time during month-end closings

Need a Custom PND 3 or PND 53 Report Format?

We’ve helped multiple Thai businesses customize Odoo to generate PND 3 and PND 53 summaries that match their filing needs. Whether you want a pre-filled PDF export, printed WHT certificates, or fully automated reporting, we can make it happen.

Conclusion

Filing PND 3 and PND 53 reports is a legal obligation for companies in Thailand making service payments. Withholding tax may seem like a small detail, but proper handling is essential for smooth audits, tax savings, and compliance.

With Odoo and Thai localization, you’re already halfway there. All it takes is a proper setup and workflow, and your WHT filing becomes smooth and stress-free.

📩 Need help setting up WHT, reports, or PND forms in Odoo?
Contact us at Spellbound Soft Solutions, we’d be happy to assist!