Wealthy could lose some tax-deductible privileges

[rooster59]

Wealthy could lose some tax-deductible privileges

By THE NATION

 

Ekniti

 

Determining that the wealthiest Thais – the top 20 per cent of the population in terms of income – are claiming up to Bt2 million in tax rebates each annually, the Revenue Department is considering eliminating some of their deductible expenditures.

 

 

Director-general Ekniti Nitithanpraphas said on Friday (October 4) that middle-income earners could also soon see relief from their tax burden.

 

“We are reviewing the suitability of each tax deductible and exemption item after seeing that the maximum Bt2 million in tax rebates is usually claimed by the top 20 per cent of the population,” he said.

 

“A Bt500,000 investment in a long-term equity fund is eligible for a 15-per-cent tax reduction, for example,” he said. “Rich people benefit most from this since they can easily spend that much to buy into a fund.

 

“If we were to reduce tax deductibles for the rich, we should be able to increase tax breaks for middle-income earners, thus reducing the burden on the largest group of taxpayers,” Ekniti added.

 

Eleven million citizens file tax reports annually, but only 4 million have to pay any taxes, while the rest are exempt because their income is less than the minimum – Bt26,583 per month – on which tax must be paid.

 

The Revenue Department has compiled a list of more than 20 deductible items to help lessen the average taxpayer’s burden. These include personal expenses, child and parent support, life-insurance premiums and interest from property loans.

 

Source: 

-- © Copyright The Nation Thailand 2019-10-05

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[trainman34014]

Bet this doesn't get far.  It will al be  'A Terrible Misunderstanding '

[FritsSikkink]

1 hour ago, trainman34014 said:

Bet this doesn't get far.  It will al be  'A Terrible Misunderstanding '

Why do you really think the rich will make a revolution about a 75K deductible.

[ThomasThBKK]

The top 20% is not the rich, they are the real middle class.

This is a poor country, the bottom of the top 20% are by no means high earning in a worldwide standard.

Normally the driver of economy...skrewing them over is stupid.

If you want to tax someone more why not take the top 1%, there is A LOT to get. 

 

They are just making sure that the super rich stay rich as they have offshore vehicles for their wealth that can't be taxed anyway and the middle class stays poor.

 

This is the household (meaning for families not singles) income distribution: https://www.statista.com/statistics/716001/share-of-household-income-levels-in-thailand-forecast/

 

Quote

Thailand’s middle class is currently emerging, and it is forecasted that around 13 percent of the households will earn at least 525 thousand Thai Baht by 2020. And yet, Thailand is seen as a country with huge income inequality. 

 

So even the top 13% of households earn an absolute minimum amount of money?? Stop taxing them and go after the rich...

 

Only 5% of households earn more than 875K THB, which is still nothing...

 

The 1% earns all here... 

Edited October 5, 2019 by ThomasThBKK

[Pedrogaz]

Prediction: New tax law will be full of compensatory loopholes to enable the super rich to avoid taxes almost completely.

[Srikcir]

It would be simpler to cut government spending for defense and reduce the size of government.

[ChrisY1]

“If we were to reduce tax deductibles for the rich,"....he's joking of course..!

[Reigntax]

The top 1% aren't rich. They just have money, houses and investments owned by other deceased people.

[kevin612]

Somehow we need to change the definition of rich. Few years ago Hillary said I will tax the rich, but she never finished her sentence.  She actually meant “ I will tax the rich working class , not the real rich people.”

Edited October 5, 2019 by kevin612

[seajae]

so only 4 million thais pay any tax each year(out of 50 plus million), could explain why there is no money and also why its a cash society, so people can hide what they have/earn. Have to wonder how many deal in cash only and dont declare it

[Stargeezr]

This will happen when pigs fly on a regular basis.

Geezer

[Grumpy John]

Crikey, this bloke is a real Aussie style comedian! ????

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[leeneeds]

It is your own duty to pay as little tax as possible,

no matter where in the world you are.

 

[hotchilli]

On 10/5/2019 at 7:14 AM, rooster59 said:

Eleven million citizens file tax reports annually, but only 4 million have to pay any taxes

Now I understand why they need foreign investment to do anything.

[FritsSikkink]

18 hours ago, ThomasThBKK said:

The top 20% is not the rich, they are the real middle class.

This is a poor country, the bottom of the top 20% are by no means high earning in a worldwide standard.

Normally the driver of economy...skrewing them over is stupid.

If you want to tax someone more why not take the top 1%, there is A LOT to get. 

 

They are just making sure that the super rich stay rich as they have offshore vehicles for their wealth that can't be taxed anyway and the middle class stays poor.

 

This is the household (meaning for families not singles) income distribution: https://www.statista.com/statistics/716001/share-of-household-income-levels-in-thailand-forecast/

 

 

So even the top 13% of households earn an absolute minimum amount of money?? Stop taxing them and go after the rich...

 

Only 5% of households earn more than 875K THB, which is still nothing...

 

The 1% earns all here... 

Like in most countries, look at the poverty in the western countries.

[FritsSikkink]

12 hours ago, seajae said:

so only 4 million thais pay any tax each year(out of 50 plus million), could explain why there is no money and also why its a cash society, so people can hide what they have/earn. Have to wonder how many deal in cash only and dont declare it

There is money, that is why the THB is so strong. A lot of people have non official businesses, so no official tax.

[FritsSikkink]

18 hours ago, Pedrogaz said:

Prediction: New tax law will be full of compensatory loopholes to enable the super rich to avoid taxes almost completely.

Do you know anything about the current tax law? Doesn't look like it, just bashing Thailand. 

[cmsally]

18 hours ago, ThomasThBKK said:

The top 20% is not the rich, they are the real middle class.

This is a poor country, the bottom of the top 20% are by no means high earning in a worldwide standard.

Normally the driver of economy...skrewing them over is stupid.

If you want to tax someone more why not take the top 1%, there is A LOT to get. 

 

They are just making sure that the super rich stay rich as they have offshore vehicles for their wealth that can't be taxed anyway and the middle class stays poor.

 

This is the household (meaning for families not singles) income distribution: https://www.statista.com/statistics/716001/share-of-household-income-levels-in-thailand-forecast/

 

 

So even the top 13% of households earn an absolute minimum amount of money?? Stop taxing them and go after the rich...

 

Only 5% of households earn more than 875K THB, which is still nothing...

 

The 1% earns all here... 

Well said! The Thailand of the last half decade has been all about mass consolidation at the very top small percentage. There is pretty much no middle class or middle upper class that existed a couple of decades ago.

[ThomasThBKK]

36 minutes ago, FritsSikkink said:

Like in most countries, look at the poverty in the western countries.

 

German social security is 1.211,08 EUR for a single mom per month (including child money). 

That is 40 000 THB. 480 000 per anno.

 

This would put the poorest germans in the Top 25-30% of Thai earners.

Somewhere on the top of the middle bracket in attached picture. And these are single moms, social security for non singles with kids goes higher.

 

Your comparison is laughable.

 

31 minutes ago, FritsSikkink said:

Do you know anything about the current tax law? Doesn't look like it, just bashing Thailand. 

 

Yes, we all do, we take advantage of them too as expats.

No taxes on worlwide income, most of thai business is done offshore via tax efficient structuring.

 

Doesn't look like you know anything, tho, at all.

Edited October 6, 2019 by ThomasThBKK

[FritsSikkink]

14 minutes ago, ThomasThBKK said:

 

German social security is 1.211,08 EUR for a single mom per month (including child money). 

That is 40 000 THB. 480 000 per anno.

 

This would put the poorest germans in the Top 25-30% of Thai earners.

Somewhere on the top of the middle bracket in attached picture. And these are single moms, social security for non singles with kids goes higher.

 

Your comparison is laughable.

 

 

Yes, we all do, we take advantage of them too as expats.

No taxes on worlwide income, most of thai business is done offshore via tax efficient structuring.

 

Doesn't look like you know anything, tho, at all.

your comparison is a joke, look at the rent and other prices in Germany.

[ThomasThBKK]

43 minutes ago, FritsSikkink said:

your comparison is a joke, look at the rent and other prices in Germany.

 

Social security pays your rent.

Living in Germany is prolly cheaper than here anyway.

My western lifestyle would certainly be cheaper in Berlin.

 

Wine, beer, gin, alc, cheese, good food, cars, all cheaper in germany.

 

My hometown in germany vs bangkok: https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Thailand&country2=Germany&city1=Bangkok&city2=Hanover&tracking=getDispatchComparison

 

And no, Hanover isn't a village, it's the capital of lower saxony. 

 

 

Quote

You would need around 40,512.90฿ (1,212.93€) in Hanover to maintain the same standard of life that you can have with 40,000.00฿ in Bangkok (assuming you rent in both cities). This calculation uses our Cost of Living Plus Rent Index to compare cost of living. This assumes net earnings (after income tax). 

 

 

 

Oh tell me how much more expensive life in germany is. 500 baht.

 

And then you account in your kids education as a single mom, then oh well it's free in germany, good universities literally everywhere in every city. Kindergarten, Schools etc all free. Here it's extremely expensive. 

Edited October 6, 2019 by ThomasThBKK

[radiochaser]

On 10/5/2019 at 9:32 AM, kevin612 said:

Somehow we need to change the definition of rich. Few years ago Hillary said I will tax the rich, but she never finished her sentence.  She actually meant “ I will tax the rich working class , not the real rich people.”

Not the answer of who is rich in Thailand, but the U.S.

A few years ago, I called two politician offices, in the United States and asked, how much money do you have to earn, to be considered rich.  

The person answering at the republican politician office put me on hold and a few minutes later came back and told me, they were unable to answer the question. 

The person answering at the democrat office also put me on hold and came back a few minutes later and told me, if you earn $84,000.00 a year or more, then you are rich.



 

[Wilson Smith]

On 10/5/2019 at 9:18 PM, seajae said:

so only 4 million thais pay any tax each year(out of 50 plus million), could explain why there is no money and also why its a cash society, so people can hide what they have/earn. Have to wonder how many deal in cash only and dont declare it

However companies pay taxes. Any company with more then 1.8 million in revenue and has a profit pays taxes which has little to no loopholes and is considered high for any company with over a million baht in profit.