{"id":178,"date":"2023-01-28T16:43:45","date_gmt":"2023-01-28T07:43:45","guid":{"rendered":"https:\/\/asiabusinessassembly.com\/en\/?p=178"},"modified":"2023-01-30T10:57:14","modified_gmt":"2023-01-30T01:57:14","slug":"thailand-transaction-tax","status":"publish","type":"post","link":"https:\/\/asiabusinessassembly.com\/en\/thailand-transaction-tax\/","title":{"rendered":"\uff3bThailand\uff3dCabinet approves transaction tax on stock market trades. Starting at 0.055% around May 2023"},"content":{"rendered":"
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On November 29, The Cabinet has approved a green light for a transaction tax of 0.1% after 30 years of tax exemption.<\/p>\n\n\n\n

Mr. Arkhom Termpittayapaisith, the finance minister, said that the cabinet decided to revoke a law for exempting stock market share trades from financial transaction tax which has been force since 1991. Stock trade transaction tax has been waived for a long time and other countries have also collected such a tax. In past, the tax exemption was to encourage investment in the stock market. He said that the government is expected to gain at least 16 billion Baht.<\/p>\n\n\n\n

Share traders will be given a 90-day grace period before the law comes into force. Starting from 2023, authorities will set the tax at 0.055% in the first year. Which come from 0.05% of financial transaction tax and local tax at 0.005%. It will take effect from the date of the announcement until December 31, 2023.<\/p>\n\n\n\n

Then in 2024, government will adjust selling tax at a ceiling of 0.11%. Which come from 0.1% of financial transaction tax and local tax at 0.01%. Which should produce around 16 billion Baht of revenue per year.<\/p>\n\n\n\n

Mr. Arkhom said \u201cThe government has considered very well that this type of taxation on the sale of shares will not have much effect on small investors.\u201d If combine a transaction tax with transaction fee, it will become an amount at 0.22% which quite close to many countries such at Malaysia(0.29%), Hong Kong(0.38%) and Singapore(0.2%). Which still Still less than many places that collect both purchase and sale taxes. Also, there are some countries that collect taxation of capital gains as well such as U.S.A.<\/p>\n\n\n\n

However, various types of Retirement Savings Funds remain exempt from financial transaction taxation.<\/p>\n\n\n\n

On December 9 Mr.Lawaron Saengsanit, Revenue Department Director-General, said that the Revenue Department has studied the issue of stock collection very carefully. He insisted that 0.1% is just the ceiling rate and the actual rate has not been set yet. It is expected to start collecting in May 2023.<\/p>\n