On 20 June 2020, the Thai government issued a Royal Decree No. 705 to exempt withholding tax, which is normally imposed at the rate of 15%, for interests that a foreign entity that does not operate business in Thailand derives from investments in bonds issued by the Bank of Thailand or the Financial Institution Development Fund. As expressed at the Cabinet Meeting on 15 April 2020, such Royal Decree replaces the Notification of National Council for Peace and Order (NCPO) No. 17/2561 (2018), in which the same tax exemption was given, to make it a new Section 5 viginti quinque of the Royal Decree No. 10.
Unlike the privileges given under the old Section 5 octo during 17 April 1985 to 13 October 2010, the above tax exemption does not apply to incomes in the nature of discount, or capital gains from the sale of bonds. Further, the above tax exemption is not extended to individual investors, irrespective of whether they are Thai tax residents or not.