Political unrest in Thailand delays new personal income tax rates

[webfact]

Political unrest delays new personal income tax rates



BANGKOK: -- The new personal income tax rates may not take effect for the 2013 tax year because of the current and ongoing political unrest.

Finance permanent secretary Rangsan Sriworasart said the new deductable tax rates was expected to be delayed until the next 2014 tax year at the earliest because the royal decree of the new personal income tax has not yet been submitted for royal endorsement.

He then attributed the current and ongoing political unrest which has deterred finance officials to complete the legal process by December 31.

The cabinet issued a royal decree in November ensuring the revised personal income tax structure to take effect in the 2013 tax year.

The cabinet had approved the new personal income tax rates, which expand the previous five tax brackets to seven; 5%, 10%, 15%, 20%, 25%, 30%, and 35%, from existing rates of 5%, 10%, 20%, 30% and 37%.

The highest tax rate falls to 35% of taxable income from 37%, while the tax exemption from annual income below 150,000 baht remains unchanged.

The tax reduction is meant to lower payments for middle income earners in order to boost domestic consumption.

The finance permanent secretary said the new 5% rate will be applicable to those earning between 150,000-300,000 baht a year, 10% for 300,001 to 500,000 baht, 15% for 500,001 to 750,000 baht, 20% for 750,001 to 1 million baht, and 25% for 1-2 million baht, while 30% for 2-4 million baht per year, and 35% for those earning over 4 million baht a year.

Source: http://englishnews.thaipbs.or.th/political-unrest-delays-new-personal-income-tax-rates/


-- Thai PBS 2013-12-12

[Thormaturge]

Weird. Some employers have already been notified by the Revenue Department to implement the new rates this month.

[GarryP]

What a shame. I was looking forward to getting a rebate.

[Katipo]

My company has already implemented the changes and I got a reabte last month.

Me thinks that either a) PTP is this as a way to erode support for the protestors (blaming them for people losing real money from their pockets is a sure fire way to do it), or they realise they can't afford to lose this tax income now the umpteen zillion loan has been suspended and may not get approved.

Either way, it's a dirty tactic..... and yet, not surprising.

If I have to pay back the rebate I sure know which Yingluck I will be blaming.

[rubl]

A little white lie perhaps?

Normally at least two months or so before, companies are informed that the rate WILL change per given date. Just to allow them to adjust their own administration, computer programs, spreadsheets or whatever.

Of course it might be that the Finence Ministry has been so awfully busy with the extra budgets outside the National Budget. The calculations on the enormous profit made with the rice price pledging scheme, the 1.14 trilion from the FIDF still under the carpet for all to see, etc., etc.

[rubl]

A little white lie perhaps?

Normally at least two months or so before, companies are informed that the rate WILL change per given date. Just to allow them to adjust their own administration, computer programs, spreadsheets or whatever.

Of course it might be that the Finence Ministry has been so awfully busy with the extra budgets outside the National Budget. The calculations on the enormous profit made with the rice price pledging scheme, the 1.14 trilion from the FIDF still under the carpet for all to see, etc., etc.

[GarryP]

According to the Thai Rath, the bill or whatever on the new tax brackets is waiting royal endorsement. The bill passed review prior to disolution. The news was supposedly issued or confirmed by Ms. Benja Luicharoen (sp?) Deputy Minister of Finance. So I should get my rebate after all.

[meand]

I really don't understand. I thought the new system was approved and implemented (for this tax year). I guess not? When, when will we know? It is kinda important to know what the tax structure will be before the work-year, so workers can make informed decisions. I guess just plan for the worst (old structure) for now.

[Gonsalviz]

Considering the government is shut down, I suspect almost everything to be delayed.

[Thai at Heart]

Of course, this sudden attempted about face might not have anything to do with the fact that GDP isn't going the right way, and tax revenues are dropping, making the whole debt to GDP numbers get worse and worse.

What did they expect, they cut corporate tax, and the excise take is plumetting because the economy isn't moving. Most people evade as much income tax as they can anyway. They may as well go about it the way of the UK. Keep increasing the tax allowances higher and higher and then ramp up VAT.

[tingtongteesood]

Once again PT shoot themselves in the foot and show why they should be removed as soon as possible, they do not understand economics.

[Thormaturge]

Of course, this sudden attempted about face might not have anything to do with the fact that GDP isn't going the right way, and tax revenues are dropping, making the whole debt to GDP numbers get worse and worse.

What did they expect, they cut corporate tax, and the excise take is plumetting because the economy isn't moving. Most people evade as much income tax as they can anyway. They may as well go about it the way of the UK. Keep increasing the tax allowances higher and higher and then ramp up VAT.

Shhh about the VAT rate.

The official rate is still 10% but is temporarily reduced to 7%, but that rate is continually being extended. it only requires the government to fail to extend the rate and we are automatically back to 10%.