“Transferring a family business” is not specific enough to calculate tax. First identify whether the transaction is a share sale, a gift of shares, or an inheritance. This article covers shares in a company or juristic partnership only. It does not cover the sale of land, buildings, inventory, or operating assets, which require separate analysis.
1. Selling Shares: Compare Proceeds with the Investment Cost
Section 40(4), item (cho chang) in the Thai text, of the Revenue Code addresses benefits from transferring shares or a partnership interest, including amounts valued as income in excess of the investment cost. The actual calculation depends on the transferor, type of shares, price and provable cost, how payment is made, and other facts. Do not treat the difference from a market-price figure as the tax cost without checking the records. Read Section 40 of the Revenue Code on the Revenue Department’s site. Revenue Code, Section 40
2. Gifting Shares: Consider the Donor’s and Recipient’s Tax Separately
A transfer without payment should not automatically be treated like an ordinary sale. The Revenue Department has issued a ruling on a father gifting shares in a privately held company to a legitimate child, addressing the donor’s and recipient’s tax separately and treating a later resale as a separate matter. That ruling applies to the facts described; it is not a universal answer for gifts to every type of relative or for every transaction. Revenue Department ruling on a share gift to a child
3. Inheriting Shares: Check the Recipient, Value, and Type of Security
Inheritance tax considers the value of assets received from each deceased person, after inherited liabilities are deducted, and applies a specific threshold when the total value exceeds THB 100 million. The recipient’s status and the location of the assets affect the tax scope. Review the Revenue Department’s rules on who may owe inheritance tax. The rules also describe how to value securities not listed on the Stock Exchange of Thailand. Ask an accountant to check the date ownership passed and the valuation records before filing. Rules for valuing assets subject to inheritance tax Inheritance tax criteria
Documents to Have an Accountant Review
- Current share certificates and shareholder register, together with the company’s articles of association.
- Evidence of how the shares were acquired and their cost, including contracts and payment records.
- Documents identifying whether the transaction is a sale, gift, or inheritance, and the relationship between donor and recipient when relevant.
- For inheritance: estate-administrator documents, inherited liabilities, the date ownership passed, and evidence of share value.
The Revenue Department publishes legislation and rulings to explain the law, but individual rulings are based on specific facts. This article does not calculate tax, stamp duty, or registration costs for any transaction. Have an accountant or tax adviser review the actual documents before signing or filing.
The linked video is about ten high-dividend funds, not the tax treatment of family business share transfers. It is retained as a video source but is not evidence for the tax discussion in this article.
The linked video does not substantiate the tax information here. The article refers to the official sources listed above.
Original video: Open on YouTube