Thailand Capital Gains Corporate Income Tax
Thailand does not have specific capital gains tax legislation. Instead, capital gains income is dealt with under the corporate income tax provisions in the Thai tax code that prescribes capital gains income as "assessable income" subject to corporate income tax.
Resident Corporate Entities
Resident corporate entities should note that the sales price of an asset or an investment is subject to a “market price” provision in the corporate income tax law, and that market price provision gives the Revenue Department's tax audit officers the power to re-assess market price whenever they think an asset or investment has been sold at a value below its market price without justifiable ground.
A summary of taxes payable for capital gains income derived by resident corporate entities is as follows:
Non-Resident Corporate Entities
Non-resident corporate entities should note that capital gains income derived in Thailand is subject to withholding tax under the local Thailand tax law, and that the Thailand payer of the capital gains income to a non-resident corporate entity is required to withhold the Thai tax payable from the amount of the capital gains income paid to the non-resident entity. Non-resident corporate entities should also note however that they may be afforded exemption from Thai withholding tax under a Thailand Double Tax Treaty.
A summary of taxes payable for capital gains income derived by non-resident companies not carrying on business operations in Thailand is as follows:
* A double tax treaty may however exempt this 15% withholding tax.
This is a general information Tax Insight Article only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.