DOUBLE INCOME TAXATION ON THAI REIT

Abstract

             Real Estate Investment Trust or REIT was introduced to the Thai capital market since 2009 by the SEC, with its aims to replace to property fund. The new REIT structure lifted up some limitations on foreign investment which was previously restricted under the Property Fund structure.

            REIT in Thailand is established in form trust which is not taxable entity under the Revenue Code. Hence, when Thai REIT invests in foreign country, there will be tax suffered in foreign country. Such tax suffered from foreign investment cannot be relieved under the Revenue Code as there is no provision of law allowing the REIT or the beneficiary of the REIT to access to double income tax relief. This leads to the discrimination between domestic and foreign investment. Such discrimination is contradicted to the intention of the Securities Exchange Commission to promote investment REIT. 

            This thesis, thus, aims to study on the problems of Thai tax law on the double income taxation relief provision and compare to the principles and practices of foreign legislation such as Australia, Singapore and Malaysia so as to analyze and propose amendment to the Revenue Code.