Thailand tax: Revenue Department has revised an Order that provides an exemption from withholding tax

Thailand Revenue Department has revised a Revenue Department Order that provides an exemption from withholding tax on payments made for the lease of assets under a leasing agreement.

The exemption applies provided the following requirements are met:
(1) the lessor has paid-up capital exceeding THB 60 million and is a VAT registrant;
(2) the lessee is a legal person; and
(3) the lease period is at least three years.

The revised Order clarifies the definition of "leasing" to include an agreement under which the lessor leases property to the lessee and the lessee has an option to purchase or return the asset to the lessor at the end of the lease period.