Capital gains tax waived for ASEAN securities
Capital-gains tax on securities listed in Asean stock markets via the Stock Exchange of Thailand has been waived in a bid to facilitate the Asean linkage initiative, which takes effect next month.
“The Finance Ministry has issued a ministerial regulation on capital-gains-tax exemption for those who sell shares listed in Asean stock markets via the Thai bourse,” said Vorapol Socatiyanurak, general secretary of the Securities and Exchange Commission.
He said the tax exemption would result in equal treatment among investors who trade in any stock market in Asean.
Capital-gains taxes are exempted for both Thai and foreign individual investors. Both Thai and foreign juristic investors who do business in Thailand are required to pay corporate income tax but no withholding tax. Foreign investors not doing business in Thailand are required to pay 15-per-cent withholding tax when posting a capital gain.
The Excise Department has allowed individual investors receiving dividends paid by listed foreign companies not to add dividend income for personal income-tax purposes if they have already paid withholding tax of 10 per cent.
Previously, investors were taxed 10 per cent on dividends paid by listed foreign companies and also paid personal income tax on the amount of dividends received.
The Asean linkage is cooperation among seven stock markets in six countries in Asean, namely Thailand, Malaysia, the Philippines, Singapore, Indonesia and Vietnam.
In the first phase, three stock markets in three countries – Singapore, Malaysia and Thailand – will take part. Investors will have more choices; for example, Thai investors will be able to trade any stocks listed in Singapore’s or Malaysia’s markets via Thai brokers.
