Taxation on Equities Investment

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Thai taxes applicable to investors in listed companies are as outlined below:

1. Taxation of Thai or foreign investors doing business in Thailand

Types of Income (From direct investment in SET/TFEX)	Tax Rate
Capital Gains*
Individual Investor Juristic Investor	Tax exempt No withholding tax but must pay corporate income tax as stipulated by law.
Dividends
Individual Investor	10% withholding tax on any dividend income from listed or limited companies. 10% withholding tax on any mutual fund dividend income; or include such income in year-end taxes. Dividends from any company promoted by the Board of Investment are tax exempt.
Juristic Investor	10% withholding tax if the taxpayer is not a listed company. Tax exempt if the taxpayer is a listed company and has held the related shares or investment units for three or more months before and after the date of dividend payment. Tax exempt if: (a) the taxpayer is a juristic entity holding 25% or more of the votable shares of the firm issuing dividends; and (b) the issuing company does not hold any shares issued by the taxpayer. However, the taxpayer must have held the related shares or investment units for three or more months before and after the date of dividend payment. Dividends from any company promoted by the Board of Investment are tax exempt.
Interest Income:
Individual Investor	15% withholding tax.
Juristic Investor	1% withholding tax. No withholding tax on interest paid by a commercial bank to a finance company, securities company, credit foncier company, or other commercial bank.

2. Taxation of foreign investors not doing business in Thailand

Types of Income (From direct investment in SET/TFEX)	Tax Rate
Capital Gains*
Individual Investor Juristic Investor	Tax-exempt 15% withholding tax
Dividends
Individual Investor Juristic Investor	10% withholding tax 10% withholding tax
Interest Income:
Individual Investor Juristic Investor	15% withholding tax 15% withholding tax

Note* : Capital gains taxes are the same whether trading occurs on the Thailand Futures Exchange Pcl (TFEX) or on the Stock Exchange of Thailand (SET).

3 . Double Taxation Treaties

So as to alleviate and eliminate duplicate taxation for certain foreign investors and thereby encourage foreign investment, the Revenue Department has negotiated and signed Double Taxation Agreements (DTA) with 57 countries. Foreigners from the countries listed below are exempt from taxes on capital gains.

*Data current as of September 2014

30 countries are exempted from capital gains taxes
without condition	with conditions apply
1) Denmark	1) Netherlands
2) Germany	2) United Kingdom & North Ireland
3) France	3) Canada
4) Singapore	4) Switzerland
5) Italy	5) Israel
6) Belgium	6) Spain
7) Pakistan	7) Uzbekistan
8) India	8) Cyprus
9) Laos	9) Norway
10) Mauritius	10) Slovenia
11) Bangladesh	11) Turkey
12) The United Arab Emirates	12) Hong Kong
13) Oman	13) Myanmar
14) Taiwan	14) South Korea
15) Kuwait
16) Republic of Estonia

27 countries are not exempted from capital gains taxes
1) Malaysia	15) Romania
2) Philippines	16) The United States of America
3) Republic of Poland	17) Grand Duchy of Luxembourg
4) Republic of Finland	18) The Federal Democratic Republic of Nepal
5) Republic of Austria	19) New Zealand
6) People's Republic of China	20) Bulgaria
7) Kingdom of Sweden	21) The Republic of Armenia
8) Hungary	22) Indonesia
9) Australia	23) Kingdom of Bahrain
10) Sri Lanka	24) Ukraine
11) Japan	25) Republic of Seychelles
12) Vietnam	26) The Russian Soviet Federative Socialist Republic
13) Czech Republic	27) The Republic of Chile
14) South Africa

(Investors should verify the correctness of the information and conditions of tax exemption under Double Taxation Agreements (DTA) on the Revenue Department’s website: www.rd.go.th.)

4.Value Added Tax (VAT)

Investors must pay 7% VAT on service fees and commissions charged by securities brokerage companies.

5. Stamp Duty (Instrument transferring)

Under the Thai Revenue Code, both foreign and domestic transferors of share or debenture certificates must pay for duty stamps, to be affixed to the certificates (if any) according to the share’s book value or the price on the transfer instrument (whichever is greater). The stamp duty rate is THB1 for every THB 1,000 or fraction thereof. However, the following transfers are exempt from stamp duty:

Transfers of Thai government bonds.
Transfers of listed securities for which the Thailand Securities Depository Co., Ltd. (TSD) is the registrar.

Note: Contents of this web site are provided for preliminary information and educational purposes only, and are not to be construed as advice or recommendations. The Stock Exchange of Thailand including the Thailand Futures Exchange Pcl., accept no liability, direct or indirect, for decisions made based on the information contained herein. As laws and regulations may be amended without notice at any time, investors should consider the correctness of the information or seek the advice of professionals before using it in decision-making.

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