Thailand Capital Gains Tax for Individuals

On 20 June 2012, Ministerial Regulation No 290 was issued, providing exemption from tax for Thailand resident individuals deriving capital gains income from sales of shares on the ASEAN Stock Exchanges. This Tax Law Guide has been updated for this new exemption.

Thailand does not have specific capital gains tax legislation. Instead, capital gains income is dealt with under the general provisions of the income tax law, which prescribes capital gains income as a type of assessable income subject to personal income tax. But, as part of the Government’s promotion of share investments on the Thailand Stock Exchange, the Thai tax laws provide exemptions from personal income tax for sales of listed shares.

A summary of Thai taxation of capital gains income derived by Thailand resident individuals is as follows:

* Applying from 20 June 2012

For non-resident individuals, the Thai tax law subjects capital gains income that is sourced in Thailand to Thai tax. But non-resident individuals should note, however, that they may be afforded an exemption from Thai tax under a Double Tax Treaty.

A summary of Thai taxation of capital gains income derived by non-resident individuals is as follows:

* A Double Tax Treaty may exempt this Thailand Withholding Tax