On 05 Aug 2015, Revenue Code Amendment Act (No 40) BE 2558 was gazetted, putting into effect from 01 Feb 2016, laws that subject gifts to tax in Thailand.
This Insight summarizes the taxation of gifts, as amended by RCAA (No 40).
Taxation of Gift Income
Assessable (Taxable) Gift Income
From 01 Feb 2016, the effective date of the RCAA (No 40), the Thailand Revenue Code prescribes gifts as assessable (taxable) income subject to tax in Thailand, as follows:
For a gift of immovable (real estate) property received by a lawful child (not an adopted child)
Subject to tax on the amount of the gift received in excess of 20 million baht in a tax year.
For a gift received by a person who is an ascendant, a descendant or a spouse
Subject to tax on the amount of the gift received in excess of 20 million baht in a tax year.
For a gift received by a person who is not an ascendant, descendant or spouse on occasions of tradition or custom
Subject to tax on the amount of the gift received in excess of 10 million baht in a tax year.
For a gift received by a person who intends to use the gift for religious, education, public benefit purposes
Exemption from tax as per the rules specified by Ministerial Regulation.
Tax Payable on Assessable Gift Income
Revenue Code Amendment Act (No 40) grants receivers of assessable gifts the right to exclude the assessable gift from tax according to the personal income tax rates, provided a 5% rate of tax is paid on the assessable gift, as follows:
For a gift of immovable (real estate) property received by a lawful child (not an adopted child)
On the amount of the gift received in excess of 20 million baht, 5% income tax, payable by the transferor on the transfer of the immovable property.
For a gift received by a person who is an ascendant, a descendant or a spouse
On the amount of the gift received in excess of 20 million baht, 5% income tax, payable on a filing of a personal income tax return.
For a gift received by a person who is not an ascendant, descendant or spouse on occasions of tradition or custom
On the amount of the gift received in excess of 10 million baht, 5% income tax, payable on a filing of a personal income tax return.
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.