Thailand To Reduce Corporate Income Tax

[george]

Thailand will have to reduce corporate income tax in the future

BANGKOK: -- Finance Minister Thanong Bidaya (ทนง พิทยะ) stated that Thailand would have to reduce the corporate income tax from 30 percent at the present, in order to increase the competitiveness of the country and to support the free trade area.

Mr. Thanong said that even though such tax is providing benefit for investment but it is not as attractive for investors. He said large companies are unworried about the income tax, but they give more importance to other expenses such as training as well as research and development. He said that the Board of Investment of Thailand, or BOI, should reconsider the benefits in order to encourage more investments.

He stated that there is no need to increase the tax at the moment as it is unnecessary and majority of people are those with less income. He said people can accept the tax rate of seven percent. Mr. Thanong, however, said that tax base should be expanded to substitute the reduction of other taxes.

The Finance Minister also spoke about the APEC Finance Ministers Meeting which was held in Vietnam, adding that the meeting discussed about the loss of income from the competition in reducing tax rates of member countries. He said member states were urged to set standardized tax system.

--thaisnews.com 2006-09-11