ThailandInheritance Taxation

Inheritance Taxation / Gift and Donation TaxationReal EstateFinancial AssetsCompany sharesAssets outside the CountryMiscellaneous
Taxable Events (personal and real obligation to contribute)Inheritance taxation: A person receives inheritance from each deceased person, whether on one or multiple occasions, if the value of each inheritance exceeds 100 millions.  

Gift taxation: A person receives money or assets as a gift exceeds 20 millions from parents, ascendants, descendants, spouse or exceeds 10 millions from others.                                                                         Donation taxation: N/A
Nothing to report.
TaxpayerInheritance taxation: Heirs / Legatees

Gift taxation: Receiver

Donation taxation: N/A
Nothing to report.
Taxable Base (Tax Valuation of Assets and Deductions)Inheritance taxation: Values on the day assets are received. 

Gift taxation: Values on the day assets are received.

Donation taxation: N/A
Inheritance taxation: Based on ministerial regulations issued by the authority of the Inheritance Tax Act B.E.2558. 

Gift taxation: Based on Property Valuation for the Public Interest Act B.E.2562.
Tax RateInheritance taxation: Ascendants and descendants are taxed at 5% of the portion over 100 millions, while others are taxed at 10% of the portion over 100 millions                                                                                                                                                                                               Gift taxation: 5% of the portion exceeding 20 millions or 10 millions                                                                                                                       Donation taxation: N/ANothing to report.
Deductions and Exemptions in Tax AmountInheritance taxation: Spouse and the members of the Royal Family ranked Praongchao and above are exempted.

Gift taxation: Charities and other organizatons are exempted.

Donation taxation: N/A
Nothing to report.
Deadline Declaration and Tax PaymentInheritance taxation: Within 150 days from the received date

Gift taxation: The same with income tax

Donation taxation: N/A
Nothing to report.
Internal Law and Agreements to Avoid Double TaxationThailand has several bilateral double tax treaties, which are distinctive to each member state.Nothing to report.

Source: International Comparison November 2023 : Antea (

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ANTEA – 2023 International Business Newsletter

Thailand’s Carbon Credit Policy: The Push for Business Collateral

As a result of Thailand’s intention to reduce greenhouse gas (GHG) emissions at the 26th UN Climate Change Conference of the Parties, Thailand has established a Voluntary Carbon Market under the supervision of the Thailand Greenhouse Gas Management Organization (Public Organization), or TGO. The establishment of the market is a result of the cooperation of businesses and organizations to voluntarily participate in the trading of carbon credits. Thailand’s carbon credit policy is under the Thailand Voluntary Emission Reduction Program (T-VER), in which TGO will register T-VER and certify the number of greenhouse gases that can be reduced or stored from T-VER. The amount of greenhouse gas that can be reduced or stored is called “carbon credits”.

Since carbon credits are traded in the market, they can be counted as an asset. This makes it possible to apply carbon credits to the financial services of banks in the form of a factor in environmentally friendly financing projects. Carbon credits can also be pledged as credit enhancement in these transactions, which helps to ensure that the project can meet its financing requirements. Additionally, carbon credits can be used as collateral in loans, particularly those used for climate-resilient investment projects, as they provide a measurable way to assess and manage climate-related risk. However, the specifics of how carbon credits can be used as collateral will depend on the financing agreement and the relevant legal and regulatory framework.

According to the press release 2023 report on the Department of Business Development’s website, the Department of Business Development has discussed with relevant agencies pushing for “carbon credits” as business collateral. The carbon credit will likely be considered collateral in the future, said Mr. Tosapol Tangsubutr, Director-General of the Department of Business Development, who is urging people to plan.

Author: Panisa Suwanmatajarn

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“Employer obligations when employing workers abroad”


1. Obligations as employer without permanent establishment/subsidiarywith permanent establishment/subsidiary
Registration as employer at Social Security OfficeYes
Registration at trade association for professional accident insuranceNo
Preparation of payrollYes
Withholding and payment of social securityYes
The contribution rate of 5% of the employee’s salary with the maximum amount of 750 per month.
Withholding and payment of wage taxYes
Observance of the regulations of national labor lawYes
Continued payment of wages in case of sicknessNot exceeding 30 working days per year
2. Wage taxes without permanent establishment/subsidiarywith permanent establishment/subsidiary
Wage tax is owed by employeeYesYes
Wage tax must be withheld and paid by the employerYesYes
Surcharge – Taxable Income 0 – 150,000 THB
Surcharge – Taxable Income 150,000 – 300,000 THB5%
Surcharge – Taxable Income 300,001 – 500,000 THB10%
Surcharge – Taxable Income 500,001 – 750,000 THB15%
Surcharge – Taxable Income 750,001 – 1,000,000 THB20%
Surcharge – Taxable Income 1,000,001 – 2,000,000 THB25%
Surcharge – Taxable Income 2,000,001 – 5,000,000 THB30%
Surcharge – Taxable Income above 5,000,000 THB35%
Solidarity Surcharge on Income Tax (individual’s income from EUR 62.500)No
3. Social security expensesSocial security contributions have to be withheld and paid by the employerEmployerEmployee
Employer and employee usually owe half each
Pension InsuranceNoNo
Unemployment InsuranceYesYes
Nursing care Insurance with ChildrenNoNo
Nursing care Insurance without ChildrenNoNo
Dental careYesYes
Health InsuranceYesYes
Levy 1 – Reimbursement for continued pay in case of sickness (up to 30 employees)NoNo
Levy 2 – Reimbursement for maternity protection periods and employment bans (regardless of employee number)NoNo
Insolvency fund levyNoNo
Employers liability insurance association contributionsNoNo
The current contribution rate for Thailand is 5% of the employee’s salary, with a maximum contribution of 750 THB even if salary exceeds 15,000 THB. 5% is allocated in proportion to the benefits listed in the following columns:5%5%
Injury or sickness benefits, disability benefits, childbirth, child benefits, death benefits1.50%1.50%
Old age benefits0.50%0.50%
Unemployment benefits3%3%
*Please note that the benefits that insured person receives under the social security are various subject to terms and conditions under Thai law*
4. Main terms of employment contract                      Term of employment contractAs agreed by the employer and employee but not in conflict with the Civil and Commercial Code and the Labor Protection Act B.E. 2541 (1998)
Type and place of activityAs agreed by the employer and employee for the type and at the place of employe
Scope of activity (working hours)8 hours per day/48 hours per week
Amount of rumuneration/special payments (If any)No
Minimum Wage
328 THB to 354 THB
Thailand minimum wage varies by province, as determined by the Wages Committee
LiabilityAs specified by the Civil and Commercial Code and Labor Protection Act B.E. 2541 (1998)
Work rulesIf the numbers of employee are 10 or more, work rules is required to be prepared and registered with the Department of Labour Protection and Welfare
Minimum annual holiday6 days
Traditional holidayNot less than 13 days
Annual HolidayWorking for an uninterrupted period of one year is entitled to an annual holiday of not less than 6 working days or as agreed between the employer and employee but not less than 6 working days
Termination of Employmentbefore the next round of wage payment
Notice Periods/probationary periodsee below 5.
5. Rules for termination of the employment contractMinimum notice period for employeeAdvance notice in writing is required at or before the due date of wage payment, and the termination of employment shall be effective on the following due date of wage payment. Otherwise, the payment in lieu of notice must be paid to employee
Longer notice period depending on the duration of the employment relationshipThe aforementioned conditions shall be applied regardless of the term of employment
Probationary periodThe probation period is not determined under Thai law. The employer has the authority to place the employee on probation for any length of time, depending on the agreement between the employer and the employee. In practice, the probation period is 90-119 days
Notice period within probationary periodAdvance notice in writing is required at or before the due date of wage payment, and the termination of employment shall be effective on the following due date of wage payment. Otherwise, the payment in lieu of notice must be paid to the employee
Extraordinary dismissal for serious reasons (e.g. theft) is possible without notice after prior hearing of the employee. The number of employees determines the regulation for it.If the employee committs an extraordinary dismissal for serious grounds as follows, the employer is entitled to terminate employment without advance notice and regardless of the employee number: 1. Performing duty dishonestly or intentionally committing a criminal offence against the employer; 2. Willfully causing damage to the employer; 3. Committing negligent acts causing serious damage to the employer; 4. violating work rule, regulation or order of the employer which is lawful and just, and after written warning having been given by the employer, except for a serious case with no requirement for the employer to give warning; 5. Absenting from its duty without justifiable reason for three consecutive working days regardless of whether there is holiday in between; 6. Being sentenced to imprisonment by a fnal court judgment
   If maximum of ten employees, then termination without cause and without payment of severance pay is generally permissibleRegardless of the number of employees, the severance pay shall be paid if the employee has worked for an uninterrupted period as specified in the Labour Protection Act B.E. 2541 (1998) unless any extraordinary dismissal for serious reasons has been involved
   If more than ten employees, then termination is only permissible due to reasons listed in the Dismissal Protection Act (KSchG)No, the termination without cause and without severance pay can be conducted regardless of numbers of employees, but subject to the extraordinary dismissal for serious reaons as mentiond in the above column
Fixed-term employment contracts are permissible for up to a period of two years without a so-called material reason having to apply. This can be extended twice for each a year. After the end of the fixed-term, the employment contract ends without the need for termination.There is no maximum period for a fix-term employment contract and no law that specifies the maximum number of extensions. the fixed-term employment contract ends without the need for termination or any advance notice. If the employees are employed under fixed-term employment contracts and the work falls into one of the following categories, they are not entitled to severance pay: 1. Specific project which is not the normal business or trade of the employer and requires a definite date to commence and end the work; 2. Occasional work with a definite ending or completion; or 3. Seasonal work that the employment is made during the season. The aforementioned works must be completed within two years, and the employer must enter into a written contract with the employee at the beginning of the employment
6. Work permit for foreign employees employee residing in EEA State + Switzerlandemployee residing in non EEA State
Application for VISA needed for employeesYES
Non-immigrant B Visa or other types of visas that allowed the holder to work in Thailand.
Non-immigrant B Visa or other types of visas that allowed the holder to work in Thailand.
Valid residence permit (limited validity) or settlement permit (unlimited validty)Not requiredNot required

Source: International Comparison July 2023 : Antea (

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South China Morning Post – Thailand’s tricky consignment law leaves Hongkonger with US$120,000 hole in his pocket after Phuket developer goes under during Covid-19

Since Phuket is popular with foreigners and attractive parcels of land are limited and are available at very high cost, it is not unusual for developers with insufficient funds to purchase land under consignment, splurge on marketing to attract investors and use their down-payments to pay off the cost.

Afterwards, the developer will seek a loan from a bank citing the number of reservations from investor.

Panisa Suwanmatajarn said in South China Morning Post.

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