On 07 February 1995 the Thailand personal income tax rules for Employee Stock Option Plans (ESOPs) were established.

This Tax Insight describes the tax rules.

Thailand Taxation of Employee Stock Options

Thailand's Revenue Code Section 39 defines assessable income to mean:

• Income that's prescribed as assessable income under the Revenue Code and any benefits received in connection with the assessable income.
  

And in 1995, Thailand's Board of Taxation issued Ruling No 33/2538 prescribing that, when a company distributes shares free of charge to employees, directors or other such persons under an entitlement, or a company sells shares to such persons under an entitlement for a price that is lower than the market price of the shares, such persons:

• Are considered as receiving benefits in connection with their assessable incomes under the Revenue Code;
  
• Are subject to personal income tax in the tax year of exercising or when receiving ownership in the shares;
• Regardless of such shares having any conditions for sale or transfer; and
• Regardless if the shares are traded or not traded on a Stock Exchange.

That is, Thailand's BOT Ruling No 33/2538 prescribes that the employee benefit received in the form of shares under an ESOP is really no different to employee benefits received in the form of bonuses.

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