Gift tax in Thailand.

While regular income is generally subject to taxation, gifts are not – or at least were not until this summer when a new regulation came into place. The newly announced regulation will be effective from February 1, 2016 and will impose tax on gifts.

In order for a gift to be considered assessable for personal income text purposes, it must meet the following criteria:

  • Inheritance income not exceeding 100M THB under Section 12 of the Inheritance Tax Act
  • Immovable property or rights of occupation of immovable property (excluding when such property or rights are given to a legitimate son or daughter without compensation and are worth less than 20M THB)
  • Gifts such as cash, shares and other property, except for:
    • Gifts received from older relative, a descendant or a spouse that are worth less than 20M THB (in one calendar year)
    • Gifts from a person who is not related but received in a ceremony, under moral obligations or in accordance with established customs. Their value cannot exceed 10M THB in a calendar year.
    • Income intended for religious, educational, and public expenditure

As with the case of Inheritance tax, tax on gifts likewise amounts to 10% for non-related recipients and 5% for ascendants/descendants. Those who qualify for paying 10% tax on gifts are given the possibility to pay it at the rate of 5% (only for criteria 2-3) – they pay 5% of the taxable portion and then exclude the amount from the calculations of their taxable income at the end of the year.

Did you find this article useful?

Share it with your friends or colleagues.

About Acclime.

As a leading provider of corporate services, we specialise in covering everything startups and established companies need to successfully start and operate their new business in Thailand. By seamlessly navigating our clients through the complexities of Thai bureaucracy, we allow them to fully focus on their business and operate it with peace of mind.

Questions? Speak to our experts.

We are available Monday – Friday 9am to 6pm (UTC+7).
© Acclime 2020 | Privacy policy