Taxes
Thailand — Tax: Capital Gains
Thailand has no separate capital gains tax regime — gains are generally folded into ordinary personal or corporate income and taxed at the standard progressive PIT rates (0-35%) or the 20% CIT rate. A key exception: capital gains realized by individuals from the sale of shares listed on the Stock Exchange of Thailand (SET) are exempt from personal income tax, provided the sale is conducted through the SET. Gains from selling Thai real estate are subject to a withholding tax calculated on the government-assessed (not market) value at the Land Department at time of transfer, which effectively functions as the property capital gains tax, alongside specific business tax (SBT) of 3.3% if sold within 5 years.
Why this matters
Because Thailand taxes capital gains as ordinary income rather than at a separate flat rate, timing large asset sales and understanding the SET share exemption can significantly change the effective tax rate for relocating investors.
Key facts
- No standalone capital gains tax; gains are taxed as ordinary income at progressive PIT rates (0-35%) for individuals or 20% CIT for companies.
- Capital gains on SET-listed shares sold by individuals through the exchange are exempt from personal income tax.
- Gains from selling foreign shares/assets are subject to the same remittance-basis foreign income rules as other foreign income (see Income Tax).
- Real estate sale gains are taxed via withholding tax at the Land Department based on the government-assessed value, plus specific business tax (3.3%) if the property is held under 5 years, or transfer/stamp duty if held longer.
- Non-residents selling Thai property are also subject to Land Department withholding at time of transfer.
Steps
- Identify asset type — SET-listed shares (exempt), real estate (Land Department withholding + SBT), or other assets (taxed as ordinary income).
- Calculate withholding at transfer for property — The Land Department computes withholding tax on the assessed value using a progressive schedule and years of ownership at the time of registration of transfer.
- Report other capital gains in the annual PIT return — Non-exempt gains (e.g. from private company shares, foreign assets remitted into Thailand) are declared as assessable income on PND 90/91.
Costs
- Specific Business Tax on property sold within 5 years: 3.3% of appraised or sale value (whichever higher)
Required documents
- Land Department transfer documents (for real estate)
- Brokerage statements (for SET share sales)
- Purchase/acquisition cost records
Common mistakes
- Assuming all share sales are tax-free — the SET exemption applies only to shares sold through the exchange, not private/unlisted company shares.
- Underestimating real estate transfer costs by forgetting Specific Business Tax applies on top of standard withholding when a property is sold within 5 years of purchase.
- Not accounting for the remittance-basis rule when a foreign capital gain is later transferred into Thailand.