Taxation on Equities Investment
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 |
Tax Rate
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Capital Gains* |
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Dividends |
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Interest Income: |
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2. Taxation of foreign investors not doing business in Thailand
Types of Income |
Tax Rate
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Capital Gains* |
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Dividends |
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Interest Income: |
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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.