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Legal update on taxation on securities in Thailand in December 2022 H&P Tax lawyers in Bangkok

The Thai cabinet has approved the Financial Transaction Tax after 30 years of exemption. The reason for the exemption was aimed to support the investment in the Stock Exchange of Thailand. The resolution is from the advice by the Ministry of the Treasury to the Thai Cabinet.

The Government believes that this tax collection will bring around a billion baht for the government’s revenue. From a Thai Tax Law perspective, the ground, and the reason for the end of this exemption is to be equal and fair with other taxpayers regarding other taxation grounds.

This Financial Transaction Tax will be collected from the transaction in the Stock Exchange of Thailand or the SET Index only in the amount of 0.05 percent in the first year. The Financial Transaction Tax will be collected at 0.1 percent from the transaction amount after the first year.

Regarding the system to collect the tax, the collection will be the broker’s duty, as the broker will collect from you.

The Financial Transaction Tax is the “Specific Business Tax” according to the Thai Revenue Code. The rate of the Financial Transaction Tax is 0.1 percent, and the base of the Financial Transaction Tax is your income before deducted from your expense to be calculated.

The tax base for a Financial Transaction Tax that is subject to a specific business tax is the income of the transaction before deducting any expenses that the investor receives.

Income means money, property, compensation, or any benefit valuable to the business operator, received or should have received, whether inside or outside the Kingdom due to business operations.

The release of the Thai cabinet resolution about the Financial Transaction Tax gave ninety days for the investors to prepare themselves for the tax burden. The Financial Transaction Tax will be in effect in March of 2023.

If you need to consult with a Tax Lawyer on tax liabilities of individuals or companies, please contact our H&P Bangkok law firm at [email protected]

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