Business operators warned of more stringent tax collection next year



BANGKOK: -- PricewaterhouseCoopers Thailand warned business operators today to brace for tougher actions next year from the taxmen to squeeze taxes of all forms from them to replenish the shortfall in government’s revenue collection.

Mr Somboon Veerawutthiwong, senior director for tax and legal affairs of PwC Thailand, attributed the tightening up of tax collection from Revenue, Excise and Customs departments to the below-target of tax collection for the past four years in a row as a result of personal and corporate tax cuts, economic slowdown and the retention of value added tax at 7 percent.

All the factors above mentioned have rendered the Revenue Department unable to fulfill its collection targets, said Mr Somboon, adding that the department has to step up its efforts to do better next year.

Pointing out that the maximum 35 percent personal tax rate is too high, he suggested that the rate should be slashed to 28 percent which will be on the same line with the rate charged on corporate entities – 20 percent corporate income tax plus another 8 percent capital gains tax.

As for VAT, he believes the government will retain the 7 percent rate for another 1-2 years so as not to affect the slow economic recovery.

Source: http://englishnews.thaipbs.or.th/business-operators-warned-of-more-stringent-tax-collection-next-year


-- Thai PBS 2015-10-28

35% Personal income tax may be high but I'm pretty sure the rich are not coming close to it.

Did the VAT used to be higher than 7%

Thanks

Stop those in charge creaming billions off the top and you won't need to raise taxes at all.

Election dates please

The new PM can clean up the mess

Election dates please

The new PM can clean up the mess

Elections are over-rated.

Just look at the US.

Just when you see the light at the end of the tunnel,its the Tax man with a torch!

regards Worgeordie

Did the VAT used to be higher than 7%

Thanks

I saw an article earlier in the year that said the VAT was actually at 10% in law but each year the government decides or not to extend the special reduction to 7%.

The decision was taken in September this year to extend the special reduction again for another year effective at the beginning of November.

This is from memory but it was in the news and on ThaiVisa ...I think. Sorry I did not have a link.

Regards

Did the VAT used to be higher than 7%

Thanks

Here is the link to the article.

http://news.thaivisa.com/thailand/vat-freeze-to-stay-for-another-year/107276/

Vat 10% but extension of reduction approved.

Regards

The Cabinet proposed cutting permanently corporate tax rate from 23% to 20% and it's not law yet. No idea where 28% originates.

Regardless, a tax rate is simply a schedule and does not indicate the effective tax rate. Corporations can use a host of legal tax avoidance measures to significantly reduce taxes. For example, in the USA the highest corporate tax rate is 40% but the average effective tax rate has been about 7%. (IRS Statement of Income publication)

Thailand historically has had the world's worst tax collection rate with about a 40% efficiency. The government might do more to focus on collecting what is properly due and leave tax rates alone for now.