Half-year income tax returns are required for individuals who earn certain types of income such as rent, professional fees, income from construction, income from sales of goods, etc. The half-year income tax returns must be filed not later than the end of September of the respective tax year. A juristic person must file half-year tax returns not later than 2 months after the first 6 months of an accounting period and annual tax returns not later than 150 days after the end of the accounting period. Each corporation is taxed as a separate legal entity. Payments of certain types of income, usually in the form of service fees, royalties, interest, dividends, rent or professional fees from or in Thailand to a foreign juristic person not carrying on business in Thailand are subject to income tax in the form of a withholding tax at a rate of 15 percent, except for dividends, for which the rate applied is 10 percent.
Capital gains are subject to tax in the same manner as any other forms of income.
The VAT is imposed on sales of goods, provision of services and import of goods into Thailand. The VAT is currently imposed at a rate of 7 percent, which has been reduced from the normal rate of 10 percent on April 1, 1999. For exports of goods, the VAT rate applied is 0 percent. An employee who received stock options is subject to individual income tax at the time they are exercised. The taxable income derived from receiving stock options is based on the difference between the exercise price and the market price of the shares on the date of receiving ownership in such shares.