We have put together a brief outline of gift tax in Thailand.
Gift tax came into effect on 1 February 2016, and any gift that is transferred from a living person is subject to gift tax.
Let’s find out more insights on Thailand’s gift tax.
What is gift tax?
Gift tax is a type of personal income tax, and the tax is imposed on money or assets given to parents, ascendants, descendants, spouse or others as a gift and exceed the threshold.
Assets or money given that do not exceed the threshold are exempt from gift tax.
What gifts are exempted from tax?
Gifts that are exempted from personal income tax are as follows:
- Income from the transfer of immovable property received by a lawful child not exceeding THB 20 million in a tax year.
- Maintenance income or gifts received by ascendants, descendants or a spouse in the amount not exceeding THB 20 million throughout a tax year
- Maintenance income or gifts received by a person who is not an ascendant, descendant or spouse on occasions of tradition or custom in the amount not exceeding THB 10 million in a tax year
- Income from gifts received by a person who intends to use the gift for education, religion or public benefit purposes according to the intention of the donor is exempt from personal income tax referred to in the Ministerial Regulations
Income or gifts in excess of the threshold listed above will be subject to personal income tax at a rate of 5%.
For the transfer of immovable property without consideration to a legitimate child, tax will be collected every time a transfer is registered through withholding tax at a rate of 5% on the amount exceeding THB 20 million.
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Gift tax calculation and tax return
The formula for calculating gift tax is:
The excess of THB 10 million or 20 million x tax rate (5%) = tax payable
The taxpayer must file the personal income tax return within 31 March of the following year. The taxpayer can choose to pay the tax at a rate of 5% in excess of the threshold or to combine it with other income.
If you need advice regarding gift tax in Thailand, we recommend engaging with Acclime’s professional tax services.