Thailand Law Library

by Thailand Lawyer

Income tax is an assessment tax. An assessment official shall make assessment on tax under this Chapter.

In this Chapter, unless the context otherwise requires:

“Assessable income” means income that is taxable under this Chapter. Such income also includes a property or any other benefit received which may be computed into a monetary value, any amount of tax paid by the payer of income or by any other person on behalf of a taxpayer and tax credit under Section 47 Bis. “Associated companies or juristic partnerships” mean two or more companies or juristic partnerships having relationship in any of the following manners:

• More than one half of the same shareholders or partners in a juristic person constitutes more than a half of the number of the shareholders or partners in another juristic person;
• The shareholders or partners holding more than fifty per cent of the value of the total capital of a juristic person are also the shareholders or partners holding more than fifty per cent of the value of the total capital of another juristic person;
• A juristic person is a shareholder or partner holding more than fifty per cent of the value of the total capital of another juristic person;
• Persons constituting more than one half of the number of the directors or partners controls the management of a juristic person are also directors or partners who control the management of another juristic person.

“Tax year” means calendar year.

“Listed company” means a company listed in the Securities Exchange of Thailand.

“Investment Management Company” means a security company licensed to carry on business of investment management under the law governing the control of trading activities that affect public safety and welfare.

“Mutual fund” means a body of persons who participate in a fund that is established and operated by an investment management company for a project under the law governing the control of trading activities that affect public safety and welfare.

“Finance company” means a finance company or a credit foncier company established under the law governing the control of trading activities that affect public safety and welfare.

“Company or juristic partnership” means a company or juristic partnership established under a Thai or foreign law, and shall include:

• A business operating in a commercial or profitable manner by a foreign government, organization of a foreign government or any other juristic person established under a foreign law;
• A joint venture, operating in a commercial or profitable manner, between a company or juristic partnership on one hand and companies, juristic partnerships, individuals, non-juristic body of persons, ordinary partnerships on the other hand;
• A foundation or association carrying on revenue generating business, but does not include the foundation or association as prescribed by the Minister in accordance with Section 47 (7) (b).
• Any juristic person as prescribed by the Director-General with an approval of the Minister and published in the Government Gazette.

“Sale” includes sale with right of redemption, exchange, gift, transfer of ownership or possessory right in an immovable property by any means, and whether with or without any consideration, but does not include:

• A sale, exchange, gift or transfer of ownership or possessory right in an immovable property to a government authority or a state enterprise that is not a company or juristic partnership under the rules, conditions and at the price or value prescribed by a royal decree.
• A transfer of ownership or possessory right in an immovable property to an heir by way of inheritance.

“Sale price” includes the price determined by an assessment official under Section 49 Bis.

“Possessory right” means possessory right in the holding of an immovable property.