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Introduction – Understanding Capital Gains Tax in Thailand
Capital gains tax in Thailand refers to the tax on profits from selling assets, such as shares or property, for more than their purchase price. Unlike many countries, Thailand does not have a separate CGT statute. Instead, capital gains are taxed under the existing income tax system.
For individuals and companies, profits from asset sales are classified as ordinary income and taxed under the Revenue Code. Understanding when tax liability arises and the differences in treatment for residents and foreign investors is essential for those investing in property, securities, or businesses in Thailand.
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Legal Basis and Regulatory Framework of Capital Gains Tax in Thailand
The legal framework for capital gains tax in Thailand is set out in the Revenue Code. Income from asset sales is considered “assessable income.” For individuals, these gains are subject to Personal Income Tax; for corporations, they are subject to Corporate Income Tax.
The Revenue Department administers capital gains tax in Thailand, with support from the Land Department, the Securities and Exchange Commission (SEC), and the Bank of Thailand (BoT). International aspects are governed by Thailand’s network of Double Taxation Agreements (DTAs) with over sixty countries.
In practice, capital gains tax in Thailand is integrated into ordinary income tax, ensuring consistent treatment across all income categories.
Capital gains taxation for individual taxpayers
For individual investors, capital gains tax is governed by the Revenue Code. Gains from asset sales are taxed at progressive personal income tax rates from 5% to 35%. There is no flat capital gains rate for individuals.
Taxable events include the sale of unlisted company shares or business interests, land or buildings not qualifying for exemption, and investment assets, intellectual property, or collectibles held for profit.
Gains are calculated as the selling price minus acquisition cost and related expenses. Individuals must report these in their annual filings (Form PND 90/91).
Exemptions are available for gains from the sale of listed securities on the Stock Exchange of Thailand (SET), for sales of personal-use property such as vehicles or household goods, and for offshore gains not remitted to Thailand in the same tax year by Thai residents. For the SET exemption, the asset must be traded through the exchange in accordance with relevant regulations. For personal-use property, the item must not be held for investment purposes. Offshore gains are only exempt if they are not brought into Thailand during the year earned.
For example, if an investor sells a villa in Phuket for THB 5 million, originally purchased for THB 3 million, the THB 2 million profit is subject to personal income tax unless an exemption applies.
Capital gains taxation for companies and juristic persons
For Thai and foreign companies, capital gains tax in Thailand is treated as part of the ordinary Corporate Income Tax obligations. Gains from asset sales, share transfers, or business disposals are taxed at the standard 20% CIT rate.
Resident companies are taxed on worldwide income, while non-resident entities are taxed only on gains arising from Thailand. When a foreign company disposes of shares in a Thai entity, the buyer may be required to withhold tax at a rate of 15% unless reduced under a DTA.
For example, if a Singapore-based company sells its Thai subsidiary, the Thailand–Singapore DTA often exempts the transaction from capital gains tax, provided the shares do not derive most of their value from Thai real estate and a valid tax residency certificate is provided. For corporate taxpayers, the capital gains tax in Thailand is an integral part of standard business taxation.
Capital Gains Tax in Thailand from Real Estate and Property Transactions
Real estate transactions are a key area for capital gains tax. While there is no separate CGT, property transfers trigger several taxes collected by the Land Department at the point of sale:
Specific Business Tax (SBT) – 3.3% of the sale price or official valuation (whichever is higher), applicable if sold within five years of acquisition or as part of a business
Stamp Duty – 0.5%, applicable only if SBT does not apply.
Withholding Tax – treated as a prepayment of income tax; for companies, it is 1% of the sale price, while for individuals, it is calculated based on the ownership period.
These mechanisms serve as Thailand’s practical approach to capital gains taxation on real estate. Exemptions are available in certain cases, such as when the property sold is a personal residence that the seller has used for at least 5 consecutive years before the transfer. Approval from the Revenue Department is required, and supporting documentation must be provided to substantiate both the period of residence and ownership.
Both foreign and Thai sellers must ensure all taxes are settled at the time of transfer, as failure to do so may prevent registration of ownership at the Land Office.
Tax on capital gains on Shares, Investments, and Securities
Capital gains tax in Thailand also applies to profits from trading securities. Treatment depends on whether shares are listed or unlisted:
i) Listed shares traded on the SET or MAI are exempt from capital gains tax in Thailand for individual investors.
ii) Unlisted shares—such as private company shares—are fully taxable, with gains treated as assessable income.
Corporate investors must include both types of gains in their annual taxable income. Foreign investors trading listed shares through licensed brokers are generally exempt from capital gains tax, which enhances Thailand’s appeal as a financial market destination.
Certain investment funds or BOI-promoted ventures may also qualify for exemptions or preferential tax treatment.
Cross-Border Capital Gains Tax in Thailand and Double Tax Treaties
Cross-border transactions are often subject to capital gains tax considerations in Thailand. Under Article 13 of most DTAs, the right to tax capital gains depends on the type of property sold.
- Gains from immovable property located in Thailand are always taxable in Thailand.
- Gains from movable property or shares are usually taxable only in the seller’s country of residence, unless the shares derive most of their value from Thai real estate.
For example, under the Thailand–France DTA, the sale of shares in a Thai property-holding company may still trigger capital gains tax in Thailand if the value arises from immovable assets. Consequently, treaty analysis is essential for foreign investors seeking to determine capital gains tax liability in Thailand.
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Tax on capital gains on Digital Assets and Cryptocurrencies
Cryptocurrency gains are an evolving area under capital gains tax. The Emergency Decree on Digital Asset Businesses and the Revenue Department’s guidelines classify such profits as assessable income under the income tax rules.
Individuals must report crypto gains and pay personal income tax at progressive rates, while licensed exchanges may withhold a portion of the gains at source. Although temporary exemptions from the 15% withholding tax have been granted, reporting remains mandatory.
For corporations, crypto-related gains are included in standard taxable income under corporate capital gains tax rules. Regulation is supervised by the Securities and Exchange Commission (SEC) and the Revenue Department to ensure transparency and compliance.
Exemptions, Reliefs, and Lawful Tax Planning under Capital Gains Tax in Thailand
Thailand offers several lawful mechanisms to minimize or defer capital gains tax obligations for investors and businesses.
BOI-promoted companies can receive full or partial corporate income tax exemptions for three to eight years, including relief on gains from approved asset sales. Investors in the Industrial Estate Authority of Thailand (IEAT) or Eastern Economic Corridor (EEC) enjoy similar privileges, often including duty exemptions and land rights.
Double Taxation Agreements are among the most effective tools for optimizing capital gains tax outcomes in Thailand. By holding shares through treaty-eligible jurisdictions, investors can reduce or eliminate Thai withholding obligations. However, artificial or nominee arrangements to circumvent foreign ownership limits or capital gains tax are prohibited. Effective tax planning should prioritize transparency, accurate valuation, and comprehensive documentation.
Reporting, Filing, and Compliance for Tax on capital gains
Both individuals and companies must report assessable income, including capital gains, in their annual tax filings.
- Individuals declare capital gains tax in Thailand using Form PND 90 or PND 91.
- Companies file Form PND 50 annually and Form PND 51 mid-year.
Supporting documents, such as sale contracts, invoices, and proof of payment, must be retained for 5 years. Electronic filing through the Revenue Department’s e-filing portal is now standard.
Penalties for non-compliance with capital gains tax in Thailand include a monthly surcharge of 1.5% on unpaid taxes, fines of up to 100% of the tax due for underreporting, and potential criminal liability for fraudulent behavior.
Accurate and timely reporting remains the most effective way to manage exposure under Thailand’s capital gains tax regime.
Emerging Developments and Policy Trends Affecting Capital Gains Tax in Thailand
Thailand is aligning its tax policy with global standards. In 2025, the government will implement a 15% global minimum tax under the OECD’s Pillar Two initiative, ensuring large multinational groups pay a minimum effective rate even if they benefit from BOI incentives. This measure will indirectly affect capital gains tax planning for cross-border corporate structures.
The Revenue Department’s adoption of the Common Reporting Standard (CRS) enhances data exchange between jurisdictions, enabling more accurate tracking of offshore gains relevant to capital gains tax.
Authorities are also considering extending capital gains taxation to certain offshore investments held by Thai residents. While no such measure is in force, investors should monitor developments closely as they may affect future reporting obligations.
Conclusion
Thailand remains one of Southeast Asia’s most investment-friendly jurisdictions, offering stability, legal clarity, and comparatively low tax rates. Although there is no separate capital gains tax statute, profits from asset, share, or property sales are taxed under the income tax system.
For individuals, these gains are taxed under personal income tax; for companies, they are part of ordinary corporate income. Thailand’s capital gains tax framework combines simplicity and flexibility, supported by exemptions for listed shares, BOI incentives, and DTA protections.
Nevertheless, compliance is critical. Proper documentation, correct application of treaties, and professional tax planning help investors meet their obligations and benefit from Thailand’s favorable business environment.
Understanding and managing capital gains tax in Thailand is not only a matter of compliance; it is essential for protecting investments, optimizing returns, and aligning business decisions with the country’s evolving legal and fiscal landscape.
FAQ
Capital gains tax in Thailand is applied to profits from selling assets like shares or property for more than their purchase price. It’s taxed as ordinary income under the Revenue Code, with no separate capital gains tax statute.
For individuals, capital gains are taxed at progressive rates from 5% to 35%. Exemptions include gains from the sale of listed securities or personal-use property. These gains must be reported in annual income filings.
For companies, capital gains are included in Corporate Income Tax, taxed at 20%. Resident companies are taxed on global income, while non-resident companies are taxed only on Thai-source gains.
Real estate sales are subject to taxes such as Specific Business Tax (SBT), Stamp Duty, and Withholding Tax. Exemptions apply for personal residences owned for at least five years.
Exemptions are available for gains from listed securities, personal-use property, and certain BOI-promoted assets. DTAs may also reduce tax liability for foreign investors.
DTAs reduce or eliminate Thai capital gains tax on shares if most of their value comes from foreign assets, but gains from Thai real estate are always taxable in Thailand.