Taxation of Holding Companies in Thailand

Updated on Tuesday 04th September 2018

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A holding company in Thailand is one that is created for the purpose of acquiring and owning the shares in other business entities, thus allowing for a certain degree of control. Investors who start this type of business will need to observe the Thai company formation rules.
The taxation of holding companies in Thailand is subject to a set of rules and regulations. Our team of agents can help investors start a holding company and observe the updated requirements.

Special considerations for the taxation of Thai holding companies

The holding company regime in Thailand is generally attractive to investors. A special Degree establishes the manner in which dividends paid by a foreign company to a Thai recipient are taxed or, more specifically, exempt from corporate income tax.
The main issues that are relevant in the holding company regime are the following:
  • Dividend taxation exemption: the dividends received by a Thai company are not taxed if that Thai registered company holds at least 25% of the shares in the company making the payments for at least six months before this payment is made and if the dividends are already subject to a tax rate of 15% in the foreign country where the company making the payment is a resident.
  • Foreign capital gains: the sale of shares can be subject to a tax exemption in Thailand when a Thai company holds shares in a non-resident company that in turn holds shares in another non-Thai company and there is a sale of shares between these entities.
  • The taxation of inbound dividends: a Thai company can be subject to an exemption from the corporate income tax when the dividends are remitted from a foreign company to a Thai company.
  • The DTAs: Thailand has concluded more than 60 double tax treaties with other countries, allowing for a sound approach on the taxation of dividends or capital gains.

Holding companies in Thailand

Investors willing to open a company in Thailand that will later be used as a holding company can request our services. We can help entrepreneurs incorporate the business and set it up as per the business needs.
The fact that the country has a broad double taxation network makes it a viable location to base a holding company.
Investors who wish to know more about the taxation regime and the conditions for setting up a holding company can contact our team of Thailand company formation agents.