Personal income tax to drop

[webfact]

NEW TAX SYSTEM
Income tax to drop
The Nation

BANGKOK: -- The Cabinet yesterday approved the reduction of personal income tax to 5-35 per cent from 10-37 per cent, while corporate income tax has been set at 20 per cent of net profit.

Government spokesman Yongyuth Mayalarp said the Cabinet had approved the draft decree on tax reduction as proposed by the National Council for Peace and Order (NCPO).

Personal income tax will be collected at the rate of 5 per cent for net income of up to Bt300,000 per year, while those earning more than Bt4 million annually will now pay 35 per cent in tax.

The new rates will be put into effect once the date is announced in the Royal Gazette.

Source: http://www.nationmultimedia.com/business/Income-tax-to-drop-30243448.html


-- The Nation 2014-09-17

[soihok]

Its still a bit steep, 35% for earnings over 4M/year.

For the same earned amount in the following countries.

Malaysia = 26%

Singapore =17%

Then again 35% is better than 37%.

[Ricardo]

The government is already running a small deficit, yet plans to cut income-tax marginally, doesn't make much sense to me.

[AGareth2]

I am happy

[jcisco]

I imagine it is to increase the cash available in the economy to stimulate growth. Other than the fact that personal tax participation is low at the moment and the top end is tax very high, seems like a decent move, have to try and be competitive. If they would axe global tax residency for corps that would be great.

[Stef]

These tax rates were decided by the previous government. I already paid tax on my 2013 income with these rates.

[worgeordie]

I would have thought they need to increase revenue,to try and cover

all the money losing popular policies of the previous government, if

they could only stop corruption,just think how much extra money the

govt. would have to squander .

regards worgeordie

[konying]

I would have thought they need to increase revenue,to try and cover

all the money losing popular policies of the previous government, if

they could only stop corruption,just think how much extra money the

govt. would have to squander .

regards worgeordie

Considering the fact that individuals in Thailand hardly ever pay taxes or show true income, cutting personal tax is just a gesture , but corporate and company taxes have been raised and those are the ones actually paying taxes .

[meatboy]

5% tax on net income up to 300,000,so does that mean the first 150,000 is goner be taxed.

[JoePai]

5% tax on net income up to 300,000,so does that mean the first 150,000 is goner be taxed.

Sounds like it - and that is they way they will recoup any tax cuts higher up the chain

[Robert2006]

Wow! 10% down to 5% that great! 50% is a lot more disposable income for the poorer Thai’s, an extra 1,250 Baht a month.

[Thaiready]

The government is already running a small deficit, yet plans to cut income-tax marginally, doesn't make much sense to me.

You sound like the Liberals from the US....when you cut taxes it frees up more funds for the taxpayer to spend.

[Time Traveller]

5% tax on net income up to 300,000,so does that mean the first 150,000 is goner be taxed.

no I think it's the same as the rates for the last 2 years. They were meant to go back to the old rates, but the government just extended them into next year or beyond. So you will still get 150,000 tax free.

[Tawai]

Any idea where to get detailed info about new tax rates ?

Nation article http://www.nationmul...p-30243448.html on an important topic as that is telling not half of what is expected of an brief information.

[robblok]

They want inheritance and capital gain tax to tax the rich so now the poor and income tax payers have to pay less while rich that avoided tax before get taxed. Sounds good to me.

[Krataiboy]

Populist.

[Stradavarius37]

Populist.

Thanks for that scintillating insight...lol

[Thai at Heart]

Its still a bit steep, 35% for earnings over 4M/year.

For the same earned amount in the following countries.

Malaysia = 26%

Singapore =17%

Then again 35% is better than 37%.

The difference is corruption in public spending.

[outsider]

Its still a bit steep, 35% for earnings over 4M/year.

For the same earned amount in the following countries.

Malaysia = 26%

Singapore =17%

Then again 35% is better than 37%.

Really? 'Only' 26% in Malaysia? I honestly thought it was higher, and am happy to note that I am wrong :-)

[Langsuan Man]

Seriously, the only people that pay income tax in Thailand are those who either work for the government or for large corporations, the average Thai lives on unreported cash

[soihok]

Its still a bit steep, 35% for earnings over 4M/year.

For the same earned amount in the following countries.

Malaysia = 26%

Singapore =17%

Then again 35% is better than 37%.

Really? 'Only' 26% in Malaysia? I honestly thought it was higher, and am happy to note that I am wrong :-)

Its a stepped rate up to earning 100,000 Ringgit a year, all earned income over that is 26%.

I have just spent 2 years working there but now moved back to Singapore = stepped rate up to a maximum of 20% (serious money to reach that though)

http://www.iras.gov.sg/irashome/page.aspx?id=9896

[cgphuket]

Do you really think anyone making over 4mil a year actually pays any taxes?

Its still a bit steep, 35% for earnings over 4M/year.

For the same earned amount in the following countries.

Malaysia = 26%

Singapore =17%

Then again 35% is better than 37%.

[soihok]

Yes

[realfunster]

Do you really think anyone making over 4mil a year actually pays any taxes?

Its still a bit steep, 35% for earnings over 4M/year.

For the same earned amount in the following countries.

Malaysia = 26%

Singapore =17%

Then again 35% is better than 37%.

Yes I do. As someone posted earlier if working for a corporate on good money, not easy to work around this requirement.

[soihok]

Do you really think anyone making over 4mil a year actually pays any taxes?

Its still a bit steep, 35% for earnings over 4M/year.

For the same earned amount in the following countries.

Malaysia = 26%

Singapore =17%

Then again 35% is better than 37%.

I do think that a large percentage of the population earning under 4M/year pay no tax.

[SantiSuk]

Any idea where to get detailed info about new tax rates ?

Nation article http://www.nationmul...p-30243448.html on an important topic as that is telling not half of what is expected of an brief information.

My old firm. Very reliable!

http://www.pwc.com/th/en/publications/thai-tax-2014-booklet.jhtml

The rates are not new - were proposed for 2013 and 2014 last year I think.

[Spoonman]

Do you really think anyone making over 4mil a year actually pays any taxes?

Iam sitting here in my office looking at 5 different people that earn more than 4 million, they certainly pay taxes.

[Tawai]

Any idea where to get detailed info about new tax rates ?

Nation article http://www.nationmul...p-30243448.html on an important topic as that is telling not half of what is expected of an brief information.

My old firm. Very reliable!

http://www.pwc.com/th/en/publications/thai-tax-2014-booklet.jhtml

The rates are not new - were proposed for 2013 and 2014 last year I think.

great website !!

Thanks for that link

[Yme]

Total bol_locks. As usual, The Nation is wrong.

It's actually an increase in personal income tax and a significant broadening of the tax base.

Last year the first Bt150,000 was tax exempt meaning Bt20,000 was the minimum salary that was required to pay tax - Bt150,000 annual salary + Bt90,000 in allowable deductions for a single, childless wage and salary earner not claiming private health insurance or parental support deductions.

According to Thai media only the first Bt100,000 will be exempt this year meaning that those earning Bt15,833/month and above will be required to pay personal income tax based on the same criteria as above.

So on Bt300,000 annual salary income tax this year will be Bt5,500 and last year it would have been Bt3,000

This year you will move into a higher tax bracket Bt50,000 earlier than last year - provided the Thai media reports are accurate.

[Moobahn]

I remember there was a calculator in Excel format available on TV but this was for the old rates. Does anyone know if there is a new one available? meaning for the new rates.