Thailand Moves Closer to Wealth Tax with New Asset Tracking

[webfact]

File photo courtesy: Kasikorn Research

 

Thailand is on the brink of implementing a wealth tax, a move greatly facilitated by recent advancements in tracking high-net-worth individuals' assets, even those held overseas. This development was explained by Finance Permanent Secretary Lavaron Sangsnit, who shared insights during an address at the National Defence College.

 

Lavaron revealed that Thailand's new membership in the international tax information exchange network has been a game-changer.

 

By joining this global framework, the Thai Revenue Department now gains access to income data related to Thai citizens residing abroad and can receive information from foreign authorities about earnings generated overseas by Thais. This unprecedented transparency marks a significant stride towards rendering a wealth tax executable.

 

“In the past, implementing such a tax was challenging because the very wealthy could manage their assets globally. The wealthy can invest worldwide, and we have never been able to track their assets held abroad,” Lavaron noted.

 

Previously, taxation was predominantly confined to assets within Thailand's borders, which, though easier to regulate, posed limitations on encompassing global assets. Now, foreign-held assets are clearly on the radar, paving the way to potentially tax wealth that has evaded assessments thus far.

 

This shift comes at a time when international tax trends are veering towards minimising income taxes while emphasising consumption and wealth levies. Lavaron emphasised that mere hikes in VAT are insufficient for comprehensive tax reform. One pivotal goal of taxation, he argued, is to ameliorate income disparities between high and low earners.

A substantial, balanced reform of the tax system could even lead to lower income tax rates, a development that would ostensibly make Thailand an attractive destination for both investors and skilled professionals.

 

Additionally, Lavaron highlighted that many countries introduce mitigative strategies wherein increased taxes in one domain are counterbalanced by support for vulnerable groups, cushioning the blow of consumption tax rises.

 

Enhancing consumption and wealth taxes is expected to boost tax collection efficacy, according to Lavaron. He also urged that, given the dynamic shifts in global tax protocols, Thailand must adjust and adopt a balanced tax policy that aligns well with international norms.

 

Lastly, he mentioned that these deliberations align with a proposal from Thailand’s Fiscal Policy Office aimed at overhauling the tax system. This comprehensive reform intends to bolster revenue, fortify debt repayment capabilities, and harmonise with evolving economic structures and consumer patterns.

 

In conclusion, the prospect of a wealth tax in Thailand signals a pivotal change in the country’s fiscal strategy, marking a proactive step towards addressing economic disparities and meeting global taxation standards.

 

With international collaboration and comprehensive domestic tax reforms on the horizon, Thailand is positioning itself for a more equitable economic future, reported Malay Mail.

 

-- 2025-01-21

 

 

 

[ozz1]

I can't see this happening too many elites will block it somehow including politicians