Capital Gains Tax In Thailand?

[kyb789]

Someone told me there is no capital gains tax from the sale of stocks in Thailand, but I find that hard to believe. I need to know because last year I sold some Thailand mutual funds (K-bank funds), and need to know where or how to declare the profits. No taxes were deducted by the bank. Normally I complete a PND91 form every year for taxes paid through my employment. How do I declare profits from the sale of Thailand mutual funds? Is there a different form? Thanks in advance.

[fletchsmile]

Yes that's right, generally no capital gains tax for individuals on sale of stocks on SET or mutual funds. As they're exempt they don't go on your tax form

http://www.rd.go.th/....html#section41

eg section 42 (23)

http://www.set.or.th...tax/tax_p1.html

Fletch

Edited February 17, 2013 by fletchsmile

[BlackJack]

the witholding tax of 10%

can any of this be claimed back

ie if there is a tax free amount before the witholding tax kicks in?

[jbaldwin]

the witholding tax of 10%

can any of this be claimed back

ie if there is a tax free amount before the witholding tax kicks in?

No. Withholding tax is for Income. There is no capital gain tax.

[BlackJack]

the witholding tax of 10%

can any of this be claimed back

ie if there is a tax free amount before the witholding tax kicks in?

No. Withholding tax is for Income. There is no capital gain tax.

bank of Ayudya has a dividend fund and they have witheld 10% of the dividend

i wonder can this be claimed back?

[Time Traveller]

PND91 is for income from employment only. PND90 is income from any source - wages, interest, dividend, royalties, rent etc - so if you want to claim back with any taxes withheld, file the form and report the income, and if total taxable income is low enough you will get a return for any tax credits. It works well for company dividends which have already paid higher corporate taxes which translate to tax credits to the recipient of the dividends.

Also as said previously there is no capital gains tax from fund or stock investments for individuals.

[fletchsmile]

the witholding tax of 10%

can any of this be claimed back

ie if there is a tax free amount before the witholding tax kicks in?

No. Withholding tax is for Income. There is no capital gain tax.

bank of Ayudya has a dividend fund and they have witheld 10% of the dividend

i wonder can this be claimed back?

The links I posted above for revenue department and SET cover this topic also.

If you are a resident of Thailand, then under Section 48 you can choose whether to pay a flat 10% or have it included in your general tax return as income at your marginal rate.

http://www.rd.go.th/publish/37749.0.html#section41

"The taxpayer who is a resident of Thailand may elect to pay tax at the rate of 10.0 per cent of the income, instead of calculating the amount of tax as under (1) and (2), only for the income under Section 40 (4) ( received from a company or juristic partnership established under the Thai law, a mutual fund, or a financial institution established under a specific law in Thailand for the purpose of providing a loan in order to promote agriculture, commerce or industry."

You can instruct BAY what to do. So if you want to just pay flat 10%, then do nothing. If you want to pay 0% at source and include on your tax return, then contact BAY and tell them to do this and not deduct the WHT.

Basically for me:

- when working in Thailand, it was better to pay a flat 10% for me, as my tax rate was over 30%.

- when not working in Thailand but tax resident here, I told them not to withhold tax and I will account for it on my tax return. I have THB 100k of allowances, and then another 150k I can earn which is zero tax/ tax exempt. The next 150k is at 5%. So if not working manage and your income here so it is less than 400-500k then you're better off telling them not to deduct WHT at the 10% flat rate.

I do this with ING Big Cap Thai Div LTF, which is the only Thai dividend fund I hold, and manage income below that level. Generally it makes more sense in Thailand to pick an equity fund that does not pay dividends and just sell a few units as the capital gains tax is tax free. So choosing a dividend paying fund you're voluntarily choosing to be captured for tax.

Cheers

Fletch

[BlackJack]

yes, i think you nailed it

i will pass this on to the party involved

thanks

ps I dumped everything I could as i see the bond bubble getting ready to burst

when everything dives and bottoms I may enter again

[Jobo]

To the OP please note that the advice contained above is dependent on what type of shares you hold if you own them directly as opposed to shares via a mutual fund.

If you hold shares directly you have a choice of owning "F" or foreign shares,ordinary shares or NVDR shares.

If you own NVDR shares then you cannot elect to not have the WHT on the dividends deducted at source.

Otherwise good advice from fletchsmile.

[diffsoft]

Dear friends:

I have a related question here on Withholding Taxes (WHT) on sale of shares.

My Singapore firm (say ABC) buys shares listed on SET via my broker who hold it for me in his nominee account in Singapore.

My question:

Suppose ABC sells shares on SET at say THB 110, which it bought at THB 100. Will the WHT be @ 15% on (110-100) or on 110?

Thank you in anticipation of your kind responses.

Warm regards,

Kimi