Keywords: Mazars, Thailand, Tax, Revenue Code, Jewellery, Gem, Royal Decree No. 556, Royal Decree No. 557, Royal Decree No. 311, Ministerial Regulation No. 296
03 April 2013
1) Royal Decree No. 556, which grants a VAT exemption on rough stones imported for selling or the sale of rough stones by individual importers or sellers during 27 December 2012 to 31 December 2014.
2) Royal Decree No. 557, which grants an exemption from personal income tax on the income derived from the sale of rough stones from which withholding tax has already been deducted by the payer during 27 December 2012 to 31 December 2014.
3) Ministerial Regulation No. 296, which prescribes that a 1% withholding tax rate shall be applicable for the purchases of rough stones when the payment is made during 11 January 2013 to 31 December 2014 to individual sellers who does not apply for VAT exemption under Royal Decree No. 311.
Rough stones under the above legislation are gems, ruby, emerald, yellow sapphire, garnet, opal, onyx, zircon, chrysoberyl, jade and jewels of a similar nature; provided only for un-cut and unpolished gems, whilst synthetic or reconstructed coloured stone, diamond, pearl, and synthetic or reconstructed diamond or pearl are not included. In addition, in order to be eligible for the exemption from VAT and personal income tax under the Royal Decree No. 556 and No. 557, all conditions prescribed by the Director-General of the Revenue Department also must be satisfied.