VAT, personal and corporate income tax cuts extended for another year: Thailand

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VAT, personal and corporate income tax cuts extended for another year



BANGKOK: -- As recommended by the Finance Ministry to boost confidence in the Thai economy, the National Council for Peace and Order decided today to extend the 7 percent value-added tax for another year starting from this October 1 until September 30 next year.

The council also agreed to extend the personal income tax and corporate income tax cuts for another year from January 1, 2014 until December 31, 2015 and from January 1, 2015 until December 30, 2015 respectively.

The personal income taxation is divided into seven rates depending on the income of the taxpayers as follows 5, 10, 15, 20, 25, 30 and 37 instead of five rates. This will help the majority low income-earners to pay less tax while the top income-earners will have to pay more taxes.

The corporate income tax is capped at 20 percent instead of 30 percent.

The NCPO also acknowledged an agreement between the Mass Rapid Transit Authority and BTS Skytrain to maintain the fares of the Chalermratchamongkok route of the MRT service at a minimum of 16 baht up to a maximum of 40 baht for a trip.

Source: http://englishnews.thaipbs.or.th/vat-personal-corporate-income-tax-cuts-extended-another-year/


-- Thai PBS 2014-07-03

[lostsoul49]

I am sure they have been working hard on other ways of getting it out of your pocket.

[Chao Lao Beach]

Anyone got a link to what the wage thresholds are for those rates ?

[Katipo]

This has helped a lot of office staff/operators in my factory. I am pleased they are extending it.

[belg]

"The corporate income tax is capped at 20 percent instead of 30 percent."

and who benefits from that ?

the super rich getting richer while sleeping + the poor slaving for them

[monkeycountry]

"The corporate income tax is capped at 20 percent instead of 30 percent."

and who benefits from that ?

the super rich getting richer while sleeping + the poor slaving for them

World wide low corporate tax rates attracts investment, which in turn creates jobs, which everyone benefits from, either directly through salaries or indirectly through income taxes on those salaries.

Basically the idea is that domestic companies will not move to more attractive countries if they are already in a country with low corporate tax, and foreign companies will make new investments in, or even move to, countries with attractive corporate tax rates. Many countries in the world, including western ones, have joined this race to the bottom, and are doing the exact same thing.

Another way to look at it is, that it is better to get 20% of something, than 30% of nothing.

The above is the general reason to lower corporate taxes, however, to be honest, I think Thailand has different reasons. I think I read somewhere, that they are just lending a hand to the many struggling companies here during these "crisis" times, and also trying to compensate companies for raising the minimum wage to 300 baht.

Edited July 3, 2014 by monkeycountry

[Tintin1810]

Chao Lao Beach; here is the link:

http://www.rd.go.th/publish/6045.0.html

Tax rates of the Personal Income Tax

Taxable Income (baht) Tax Rate (%)

0-150,000 Exempt from paying taxes

more than 150,000 but less than 300,000 5%

more than 300,000 but less than 500,000 10%

more than 500,000 but less than 750,000 15%

more than 750,000 but less than 1,000,000 20%

more than 1,000,000 but less than 2,000,000 25%

more than 2,000,000 but less than 4,000,000 30%

Over 4,000,000 35%

To be implemented for the 2013 and 2014 tax years.

Edited July 4, 2014 by Tintin1810

[Thai at Heart]

"The corporate income tax is capped at 20 percent instead of 30 percent."

and who benefits from that ?

the super rich getting richer while sleeping + the poor slaving for them

World wide low corporate tax rates attracts investment, which in turn creates jobs, which everyone benefits from, either directly through salaries or indirectly through income taxes on those salaries.

Basically the idea is that domestic companies will not move to more attractive countries if they are already in a country with low corporate tax, and foreign companies will make new investments in, or even move to, countries with attractive corporate tax rates. Many countries in the world, including western ones, have joined this race to the bottom, and are doing the exact same thing.

Another way to look at it is, that it is better to get 20% of something, than 30% of nothing.

The above is the general reason to lower corporate taxes, however, to be honest, I think Thailand has different reasons. I think I read somewhere, that they are just lending a hand to the many struggling companies here during these "crisis" times, and also trying to compensate companies for raising the minimum wage to 300 baht.

I think the restrictions on ownership have a far greater bearing on investment than any others in Thailand.