Related information

Taxation on Equities Investment

Thai taxes applicable to investors in listed companies are as outlined below: 
no
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.
no-1
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
  • 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.
  • 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).
no-1
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 taxes27 countries are not exempted from capital gains taxes
without conditionwith conditions apply
1. Denmark1. Netherlands1. Malaysia
2. Germany2. United Kingdom & North Ireland2. Philippines
3. France3. Canada3. Republic of Poland
4. Singapore4. Switzerland4. Republic of Finland
5. Italy5. Israel5. Republic of Austria
6. Belgium6. Spain6. People's Republic of China
7. Pakistan7. Uzbekistan7. Kingdom of Sweden
8. India8. Cyprus8. Hungary
9. Laos9. Norway9. Australia
10. Mauritius10. Slovenia10. Sri Lanka
11. Bangladesh11. Turkey11. Japan
12. The United Arab Emirates12. Hong Kong12. Vietnam
13. Oman13. Myanmar13. Czech Republic
14. Taiwan14. South Korea14. South Africa
15. Kuwait 15. Romania
16. Republic of Estonia 16. The United States of America
  17. Grand Duchy of Luxembourg
  18. The Federal Democratic Republic of Nepal
  19. New Zealand
  20. Bulgaria
  21. The Republic of Armenia
  22. Indonesia
  23. Kingdom of Bahrain
  24. Ukraine
  25. Republic of Seychelles
  26. The Russian Soviet Federative Socialist Republic
  27. The Republic of Chile


(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.)

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Group 13974
Value Added Tax (VAT)
Investors must pay 7% VAT on service fees and commissions charged by securities brokerage companies.

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Group 13973
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.