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Investment Taxation for Expats in Thailand

Submitted: August 2014

Taxable income in this category includes:

  • interest from bank and building society deposits
  • interest from government and corporate stocks (bonds)
  • rental income from properties both in Thailand and abroad
  • dividends, and
  • capital gains

 

Interest

Interest income in Thailand is generally subject to a withholding tax of 15% and must be reported on your tax return. However interest of less than THB20,000 from an on-demand savings account is not taxable, and interest income from a fixed deposit account with a passbook, and with a term of five years or more is subject to a withholding tax of 10%. As a resident, you will also have to pay tax on interest received from other countries, and may be subject to withholding taxes in the country of origin. If the country of origin of the interest payments has a suitable tax treaty with Thailand, the amount of tax that can be charged by the country of origin can be reduced.

For a non-resident individual, interest income in Thailand is generally subject to a final withholding tax at a flat rate of 15%. However, generally a non-resident will not have to pay Thai tax on interest from other countries, though you may be subject to withholding taxes in the country of origin. If the country of origin of the interest payments has a suitable tax treaty with Thailand, the amount of tax that can be charged by the country of origin can be reduced.

 

Rental income

For residents, rental income from Thai property is taxed as ordinary income, and must be reported on your annual tax return. The taxable amount is calculated after deducting either actual repair and maintenance expenses/costs or 10-30% (depending on the property, but generally 30%) from the gross rental income to produce the net rental income. If you choose to deduct actual maintenance costs, you will have to provide documentary evidence of the costs incurred. In addition to income tax you will have to pay House and Land Tax which is charged at a rate of 12.5% of the rental income. As a resident, you will also have to pay tax on rental income from outside Thailand, and may be subject to withholding taxes in the country of origin.

For non-residents, rental income from Thai property is taxed as ordinary income, and must be reported on your annual tax return. However your tenant will deduct a 15% withholding tax from the rental payments, which must be forwarded to the Revenue Department, and acts as a tax credit against your income tax bill.

 

Dividends

For a resident, dividend income in Thailand generally has a withholding tax of 10% deducted at source. It must be reported with all your other investment income on your tax return. You will also have to pay income tax on dividends received from other countries, and may be subject to withholding taxes in the country of origin. If the country of origin of dividend payments has a suitable tax treaty with Thailand, the amount of tax that can be charged by the country of origin may be reduced.

For a non-resident, dividend income in Thailand has a withholding tax of 10% deducted at source. It must be reported with all your other investment income on your tax return. You do not have to pay Thai income tax on dividends from other countries.  

 

Capital gains

For residents and non-residents, capital gains from Thai sources are taxed as ordinary income and must be reported on your tax return. Capital gains made from the sale of shares which are registered on the Thai stock exchange are exempt. The sale of your home can be exempt from tax provided the gain is reinvested within 12 months of the sale (or an amount equal to the gain was invested within 12 months before the sale).

As a resident, you will also have to pay income tax on capital gains made in other countries. 

 

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