Thailand Capital Gains Tax – Same As Income!

So What Is The Rate?

August 29, 2004
By Niles Brohey

Capital gains taxes are taxes on gains from the sale or exchange of capital assets – such as real estate, shares, businesses, or property. In most countries capital gains are taxed at a different rate to income (when they are on assets owned for more than a year). This is true of almost all EU nations and of the USA also. However it is not true of Thailand.

Thai capital gains tax is the same as income tax, in fact Thai law has no provision for a special capital gains tax. All capital gains fall under the heading of conventional income and are taxed as such. In many ways this means that effectively all capital gains are treated in the same way as capital gains on short term assets in western nations.

In western nations capital gains tax for assets held less than one year is the same as your personal income tax rate. For assets held for one year or more a lower capital gains tax is applied for most gains. Typically this rate is between 15% and 30%. In Thailand all capital gains are taxed under the umbrella of income tax and as such Thai income tax rates apply in all cases.

Thailand has a progressive income tax system with personal rate ranging from 5% to 37% and tax rates for businesses at a flat rate of 30%. This 30% rate also applies to foreigners who are non-resident in Thailand whether that business is personal or otherwise.

So a private individual will be charged capital gains tax at a rate varying between 5% and 37% depending on their income. Businesses and foreign businessmen will be be subject to a 30% capital gains tax rate on any net capital gains.