Understanding the Regulations and Implications of Thailand’s Gift Tax Law

A. Tax Exemption of the Gift
Assets received from ascendants, descendants or spouses are exempt from gift tax if the value of the gift does not exceed Baht 20,000,000 per tax year (calendar year). Amounts exceeding Baht 20,000,000 are subject to a 5% tax rate.

B. Tax Liabilities

• Moveable Property: Individuals who receive movable property, such as vehicles, financial instruments (including company shares, bonds, mutual funds or other securities) or cash with a value exceeding Baht 20,000,000 shall declare the excessive amount for the calculation of their personal income tax by using form P.N.D. 94 (for mid-year tax filing purposes) or P.N.D. 90 (for annual tax filing purposes).
• Immovable Property: Individuals who receive immovable property, such as land, buildings (e.g. condominium, house, commercial building) or land and buildings are not responsible for paying any gift tax on amounts exceeding Baht 20,000,000. Rather, the transferor who gives such immovable property is liable for personal income tax, e.g. withholding tax at source at the rate of 5% on the transfer date (to be paid at the Land Department when registration of rights and juristic acts takes place). Furthermore, the transferor shall declare such income in their personal income tax return due to it being deemed that the transferor is wealthy, and they shall shoulder such tax burden rather than the transferee.

A. Tax Exemption of the Gift
Assets received from ascendants, descendants or spouses are exempt from gift tax if the value of the gift does not exceed Baht 10,000,000 per tax year (calendar year). Amounts exceeding Baht 10,000,000 are subject to a 5% tax rate, and the recipient shall declare the excessive amount in their personal income tax return by using form P.N.D. 94 (for mid-year tax filing purposes) or form P.N.D. 90 (for annual tax filing purposes).

B. Tax Liabilities
Under the Gift Tax Law, with regard to gifts from persons who are NOT ascendants, descendants or spouses, movable and immovable properties are treated the same. Therefore, any gift in an amount above Baht 10,000,000 is subject to personal income tax at the rate of 5%, as mentioned above. Additionally, similar to gifts from ascendants, descendants or spouses, the recipient of the gift has the right to choose to pay the gift tax at the rate of 5% of the amount in excess of Baht 10,000,000 without having to include it in the calculation of their personal income tax.

The exemption limit is Baht 10,000,000 per tax year. Amounts in excess of 10,000,000 are subject to a 5% tax rate. The recipient shall declare the excess amount using form P.N.D. 90 at the end of the tax year.