Income Taxation on Private Trust Management in Thailand

Abstract

            Currently, the law in Thailand has provisions allowing individuals to manage personal assets in diverse ways, such as management in the form of partnerships and companies, agents, contracts for the benefit of third parties, deposits, work hire, or legal investment property management. However, such laws are not intent specifically for personal property management. Researchers have advocated updating private trust law by adapting foreign precedents to the Thai context. In terms of trust, concerns remain about taxation on proceeds of trust operations when implementing imposition according to the Private Trust Management Act BE .... For example, determining the legal status of a trust; persons liable to pay income tax related to the trust; type of benefit income deriving from operation of the trust; or management of personal assets under other laws appearing as a form of trust formation Different tax burdens will exist, whether tax base or rate payable, expense deductions and different allowances, including the case of trust establishment under foreign laws, which may not be subject to income tax liability under the tax laws of Thailand. Therefore, appropriate storage measures and guidelines in line with good tax laws are essential. principles and methods never not cause trust formation to become a device for tax avoidance, nor should tax measures change taxpayer behavior more than minimally.