Thailand Withholding Tax Setup in Odoo – Complete Guide

Managing Withholding Tax (WHT) in Thailand doesn’t have to be complicated, especially if you’re using Odoo. With the Thai Localization Module (l10n_th), most of the work is already done for you. The WHT setup, accounts, and tax rates come pre-configured, so you only need to know how to apply them correctly in your daily transactions.

This blog explains how to practically work with WHT in Odoo for Thai businesses.

What is Withholding Tax (WHT)?

Withholding Tax is the tax you deduct from a payment before paying a supplier or service provider and then send directly to the government.

Example:

• Invoice: 10,000 THB
• WHT Rate: 3% (service)
• Pay Supplier: 9,700 THB
• Pay Government: 300 THB

The supplier later uses the deducted tax as a tax credit.

Withholding Tax in Thailand – Standard Rates

The common WHT rates under Thai law are already included in Odoo:

• 1% – Transportation
• 2% – Advertising
• 3% – Services, rentals, professional fees
• 5% – Dividends, royalties

Step 1: Install the Thai Localization Module

1. Go to Apps → Search “l10n_th” → Install.
2. Once installed, Odoo automatically sets up:
   – Thai Chart of Accounts (CoA)
   – Standard Withholding Tax accounts and rates

No manual tax creation is needed.

Step 2: Select the Correct WHT on Vendor Bills

When entering vendor bills:

1. Go to Accounting → Vendor Bills → Create.
2. Add the supplier, product/service, and cost.
3. Under the Taxes field, choose the correct WHT rate (1%, 2%, 3%, or 5%).

Example:

• Service Cost: 10,000 THB
• WHT (3%): 300 THB deducted
• Total Payable to Vendor: 9,700 THB

Odoo automatically records the tax payable under the Withholding Tax Payable account.

Step 3: Pay WHT to the Government

At the end of the month:

• Go to Accounting → Payments
• Record payment to the Revenue Department, selecting the Withholding Tax Payable account.

Step 4: Issue Withholding Tax Certificates

Suppliers need WHT certificates for tax credit.

• Odoo already stores all WHT details, and you can:
  – Print the vendor bill showing WHT, or
  – Use a Thai-specific WHT certificate template (custom modules available).

Step 5: File Monthly WHT Report

Odoo’s tax report shows the total WHT payable:

1. Go to Accounting → Reporting → Taxes
2. Check WHT totals and use them for filing monthly returns.

Why Odoo Makes WHT Simple

✔ Pre-configured WHT rates & accounts – no manual setup
✔ Automatic calculation on vendor bills
✔ Easy reporting for monthly filing
✔ Accurate entries for audits and compliance

Conclusion

With the Thai Localization Module, Odoo takes away the hard work of managing Withholding Tax. Everything is already set up – you just need to pick the correct WHT rate while creating vendor bills, and Odoo handles the rest.

📩 Want to configure Odoo properly for Thai Withholding Tax and other accounting needs?

Contact Spellbound Soft Solutions today.