A new regulation on gift tax, as part of personal income tax, was announced on 5 August 2015. The regulation will be effective from 1 February 2016 onwards.
Keywords: Mazars, Thailand, Tax, Immovable Property, Gift Tax
02 October 2015
The following items will be assessable for personal income tax purposes:
1) Immovable property or rights of occupation of immovable property (except for immovable property or rights of occupation of immovable property, given to a legitimate son or daughter (but not including an adopted child) without compensation, the value of which does not exceed 20 million baht in that calendar year);
2) Gifts (such as cash, shares, and other property), except for the following:
a) gifts received from a surviving older relative (only parents and grandparents, not including aunts, uncles, or cousins), a descendant, or spouse, the value of which does not exceed 20 million baht in that calendar year;
b) gifts received under moral obligation or gifts received in a ceremony or on occasions in accordance with established custom from a person who is not a surviving older relative, descendant, or spouse, the value of which does not exceed 10 million baht in that calendar year; and
c) income received intended for religious, educational, and public expenditure.
- A taxpayer can choose to pay tax of 5% of the taxable portion, and then not have to include the taxable portion in the calculation of net taxable income for the year-end.