Capital Gains Income

On 12 Nov 2019 Thailand tax Royal Decree (No 689) was gazetted prescribing an exemption from personal tax for capital gains income derived from a transfer of investment units in Mutual Funds.

This Insight has been updated for the tax exemption in Royal Decree (No 689).

Thailand does not have a separate, comprehensive capital gains tax law. Instead, the general income tax law prescribes capital gain income as one of the types of income that is assessable (taxable) income.

Taxation of Capital Gains Income

In accordance with the Section 41 Source of Income Law and the laws governing withholding tax deductions and income tax credits, the taxation of capital gains income for a resident of Thailand* is as follows:

For a resident of Thailand deriving capital gains income from a source
in Thailand

Personal income tax on the amount
of capital gains income (the amount
of the proceeds exceeding the costs
of the investment), and
Claiming a tax credit for the amount
of the WHT deducted at source.

For a resident of Thailand deriving capital gains income from a source
outside Thailand and bringing it in-
to Thailand

Personal income tax on the amount
of capital gains income (the amount
of the proceeds exceeding the costs
of the investment) that is brought in
to Thailand, and
Claiming a tax credit for the amount
of the tax paid on the income in the source country (as prescribed in the relevant Double Tax Agreement).

Exemptions from Personal Income Tax

Whilst the general tax law prescribes capital gain income as assessable (taxable) income that is subject to personal income tax in Thailand, specific laws entitle a resident of Thailand* to exemptions from tax for certain capital gain income.

For a resident of Thailand* deriving capital gains income from a transfer
of shares in a company listed on the Thailand Stock Exchange

Exemption from personal income tax
(Ministerial Reg No 187 (BE 2534))

For a resident of Thailand* deriving capital gains income from a transfer
of shares in a company listed on the ASEAN Stock Exchanges

Exemption from personal income tax
(Ministerial Reg No 290 (BE 2555))

For a resident of Thailand* deriving capital gains income from a transfer
of units in a mutual fund established under the Thailand securities law

Exemption from personal income tax
(Royal Decree (No 689) BE 2562)

* A person who stays in Thailand for 180 days or more in a year is deemed to be a resident of Thailand.

Our Tax Insights and Updates are general information publications focusing on the laws for meeting tax compliance obligations, and tax rights and entitlements under the laws.

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