Investing in the Stock Exchange of Thailand is another investment channel for both Thai and foreign investors. Investors have the duty to be responsible for paying taxes as required by law to be accurate and complete.
According to the information of the Stock Exchange of Thailand, the details of tax payment are as follows:
In the case of Thai investors and foreign investors operating in Thailand
Capital gains from the sale of securities in the stock exchange or futures market (Capital gain) if a person is a tax exemption. If it is a juristic person, there is no withholding tax but must be included as income to calculate corporate income tax.
Dividend (Dividend)
Individuals deduct 10% withholding tax, exempt from tax in the case of receiving dividends from BOI-promoted companies.
Juristic persons withholding tax 10%, tax exemption in the case
1. The payee is a listed company holding shares for at least 3 months before and 3 months after the date of dividend payment.
2. The taxpayer owns not less than 25% of the voting shares of the dividend-paying company, and the dividend-paying company does not own any shares of the receiving company. This ownership must have lasted for at least three months prior to and three months following the date on which the taxpayer received the dividend.
3. Receive dividends from companies that have received BOI investment promotion
In the case of foreign investors who do not carry on business in Thailand
Profits from the sale of securities in the stock market, futures exchange (Capital gain) if being an individual, tax exempt, if being a juristic person withholding tax of 15%.
Dividend (Dividend)
Individuals or juristic persons are subject to 10% withholding tax as well.
However, foreign investors, besides having to pay taxes in Thailand, are also obligated to pay taxes in their own country. The Revenue Department has therefore negotiated and prepared double taxation agreements with other nations in an effort to reduce and eliminate double taxation. Thailand currently has double taxation agreements in place with the following 61 nations:
Countries that are exempt from unconditional capital gain tax include:
1. Kuwait 2. Denmark 3. Taiwan 4. Bangladesh 5. Belgium
6. Pakistan 7. France 8. France 9. Germany 10. Laos
11. Italy 12. Emirates 13. Oman 14. Mauritius
Countries that are subject to capital gain tax exemption include:
1. South Korea 2. Canada 3. Cyprus 4. Turkey 5. Tajistan
6. Norway 7. Netherlands 8. Myanmar 9. Philippines
10. Spain 11. Switzerland 12. Ireland 13. Slovenia
14. England and Northern Ireland 15. Israel 16. Uzbekistan 17. Estonia 18. Hong Kong
Countries where the Capital Gain Tax Exempt Countries include
1. Cambodia 2. China 3. Chile 4. Czech 5. Seychelles
6. Japan 7. New Zealand 8. Nepal 9. Bahrain 10. Bulgaria
11. Belarus 12. Poland 13. India 14. Finland 15. Malaysia 16. Ukraine 17. Russia 18. Romania 19. Luxembourg
20. Vietnam 21. Srilinga 22. Sweden 23. USA 24. Australia 25. Austria 26. Armenia 27. South Korea 28. South Africa 29. Hungary
In addition, investors will be charged value added tax (VAT) from securities companies providing brokerage services / futures contracts at a rate of 7% of the fees or commissions. In trading as charged by the securities company and the sale of shares is not considered a sale of goods and therefore is not subject to VAT.
Investors are also obligated to pay stamp duty on the transfer of share certificates, debenture certificates, and bonds containing transfer instruments. The transfer must be stamped with stamp duty at a rate of 1 Baht for every 1,000 Baht or fraction thereof, based on the paid-up share price or the instrument price (Whichever amount is greater), with the exception of the transfer of government bonds or securities on the stock exchange for which Thailand Securities Depository Co., Ltd. (“TSD”) is the registrar.
Source: SET Contact Center
Tel:+66 2 009 9999
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