Did you know that gifts are also subjected to taxation in Thailand?

Did you know that gifts are also subjected to taxation in Thailand?

Did you know that gifts are also subjected to taxation in Thailand?
No? Then you must know about gift tax in Thailand. On February 1st, 2016, the tax has been imposed on gifts too.

When Do You Need to Pay Gift Tax in Thailand?
Gifts that are given by an individual who is still alive is typically subjected to personal income tax. Usually, the income tax is levied on the asset value or the amount that is given to the ascendants, spouse, and descendants and/or others who exceed the threshold, depending on the gift type and donor.

If you have an event to attend in Thailand, make sure you know which all gifts have a tax imposed. For a gift to be considered as a personal income tax purpose, it should meet the below-mentioned criteria;
• Inheritance income not more than 100M THB
• Immovable property
• Cash, shares and other property, other than;

Things received from a descendant or your spouse, which is less than 20M THB
Income that is intended for public expenditure, educational and religious purposes
Gifts received in a ceremony or under moral obligations based on the customs. Even then the value should not exceed 10M THB.

When it comes to inheritance tax the gifts amounts to 10% for the non-related recipients whereas 5% for the descendants or ascendants. In case of transferring an immovable property without consideration by a parent to the legitimate child, the gift tax will be charged every time there is a transfer, registered by the means of withholding tax at 5% rate depending on the portion that exceeds 20 million Baht. Transferring an immovable property without even considering other’s case would be subjected to the withholding tax in Thailand at a normal progressive income tax rates based on the criteria or conditions laid out.

Credit: konradlegal.com

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