Thailand corporate tax law treats dividend income derived by entities as normal assessable income subject to corporate income tax but also exempts dividends from tax under certain circumstances.
A summary of Thai taxation of dividend income for resident and non-resident corporate entities is as follows:
For Resident Corporate Entities
Receiving dividend income from:
A Thailand company
Corporate Income Tax
A Thailand company - when the investment in the Thailand company is held for at least three months before and after receipt of the dividend
Exemption from Corporate Income Tax on 50% of the dividend (*)
A Thailand company - when the investment in the Thailand company is held for at least three months before and after receipt of the dividend the investment is at least 25% of the total shares with voting rights, and no cross holding exists between the companies
Exemption from Corporate Income Tax
A Thailand company - when dividends are paid out from the profits of an investment-promoted business, a private school business or venture capital business
Exemption from Corporate Income Tax
A Foreign company
Corporate Income Tax
A Foreign company - when the investment in the Foreign company is held for at least six months before receipt of the dividend, the investment is at least 25% of the total shares with voting rights, and the dividend is paid out of profits subjected to a tax rate of at least 15%
Exemption from Corporate Income Tax
(*) Exemption from Corporate Income Tax on 100% of the dividend for Resident Corporate Entitles Listed on the Stock Exchange.
For Non-Resident Corporate Entities
Receiving dividend income from:
A Thailand company
10% Withholding Tax
A Thailand company - when dividends are paid out from the profits of an investment-promoted business, a private school business or venture capital business
Exemption from Corporate Income Tax
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