Thai Income Tax

[expatman]

What are the current allowances for tax deductions ?

A few months ago there was a story in the Post saying the dection for salaried income would be raised from 60,000 Baht to ???

I can't find anything official on this, or the original news article. Can anyone tell me what the current situation is ? Was this change passed into law ?

reply by email to [email protected] would be appreciated

[Sumitr Man]

A review of the following link will provide you with all the answers you seek:

http://www.rd.go.th/publish/6000.0.html

SM

EDIT - Having re-read the link, a change to this may be the increase in taxable income base allowance from 80k to 100k (which, I believe, is not effective till '04 tax returns have been submitted, which then entitles you to a 1,000 baht tax refund).

EDIT 2: (the article)

PERSONAL INCOME TAX: Rebates for 3.6m early next year

Published on Dec 9, 2004

But overall taxation should still grow. About 3.6 million people will receive tax rebates next year following a decision by the Cabinet to increase the personal income-tax exemption to people who earn a net Bt100,000 a year.

The previous threshold was Bt80,000.

The number of people who do not have to pay taxes will increase from 1.4 million this year thanks to the new rules, Sirote Swasdipanich, director-general of the Revenue Department said yesterday. That means people who earn less than Bt16,000 a month, and who have nearly Bt8,000 in deductions a month, will not be subject to personal income tax payments.

Those who have higher salaries will receive a Bt1,000 tax rebate next year for 2004, and they will pay lower taxes next year as well under the new rules.

People who file tax returns online will receive refunds within one month. Taxpayers who file returns the old-fashioned way at the Revenue Department may have to wait as long as three months to get their money back, Sirote added.

The Revenue Department expects 2.3 million people to file tax returns via the Internet between January to March, up from 2 million this year.

Meanwhile, tax collections in November, the second month in the government’s fiscal year, increased 35.7 per cent to Bt62.5 billion from November 2003. Tax collections were 22.5 per cent higher than originally anticipated.

The increase was due to higher salaries and higher profits for private companies, said Sirote.

He also said he was optimistic the department would be able to help the government fund its Bt1.24-trillion budget by collecting Bt28 billion more than its Bt820-billion target during the year ended September 30, 2005.

But other tax collection agencies are facing a tougher challenge. As the pace of economic growth slows, the Customs Department and Excise Department will likely collect fewer taxes.

As tariffs are reduced to comply with free-trade agreements, the Customs Department will likely collect fewer taxes on imported goods. And a decline in consumer confidence has cut back on car and other durable-goods purchases, which means the Excise Department will collect lower-than-expected taxation.

Nonetheless, value-added tax collections jumped by 32 per cent to Bt30.6 billion in November compared to the same month last year.

The Revenue Department last month collected Bt9.86 billion in personal income tax, up 8.9 per cent from November 2003. Corporate income-tax revenues rose sharply by 62 per cent to 19.2 billion from the same month last year.

Tax collections related to real estate transactions in November grew 74 per cent to Bt 1.9 billion from November 2003, but were slightly off target.

Higher oil prices forced a 3-per-cent increase in petrol tax collections in November to Bt328 million.

Total tax collections for October and November grew 25 per cent to Bt114.64 billion from the same period in 2003. Collections were 16 per cent above target.

Wichit Chaitrong

The Nation

http://www.nationmultimedia.com/search/pag...-12-09&usrsess=

Edited December 30, 2004 by Sumitr Man