Taxation
Individual Investors
- The Bank of Thailand will deduct withholding tax every time interest is paid, in accordance with the rates prescribed under the Revenue Code. (Individual interest income is subject to withholding tax of 15%.)
- Capital gain is subject to withholding tax of 15%.
Juristic Entities
- The Bank of Thailand will deduct withholding tax every time interest is paid, in accordance with the rates prescribed under the Revenue Code.
- Capital gain is exempt from withholding tax but will be included in the calculation of net profit for the purpose of company income tax.
Note: The tax conditions are in accordance with the conditions of the Revenue Department.
Investment Risks
Market Risk
The prices of debt securities move in the opposite direction to market interest rates. Therefore, when investors want to sell debt securities prior to maturity and the current market interest rate goes up, they may need to sell at lower prices than that in the market.
Credit Risk
Credit risk is the risk that a debt securities issuer is unable to repay principal and/or interest in a timely manner. This includes the risk that an issuer's credit rating is lowered while their debt security has not reached maturity. Government debt securities have very low credit risk, so their returns tend to be lower than those of corporate debt securities.