Thailand Tax news

[Tywais]

Came across a couple of news items regarding taxes in Thailand.

Extension of Reducing VAT for 1 Year

According to the announcement of National Council for Peace and Order (No. 92/2557), to reduce VAT rate from 10 percent to 6.3 percent for sale of goods and services or importation.
The Cabinet of Thailand has issued Royal Decree (No. 592) B.E. 2558 to retain the same rate as that which expired in September 30, 2015 and to extend this rate until September 30, 2016. Following this, the rate will be changed to 9 percent from October 1, 2016.

Note: in practice the rate of VAT is 7 percent which is inclusive of local tax at 0.7 percent.
Thailandlawoffice

Change in personal income tax. Believe there is a change in standard deductions but don't have that info yet.

November 10, 2558 Cabinet approved updated tax tables. Revenue Department

[onthemoon]

The text in the income text table says that the income tax will remain the same for another year.

So, if there is a change in standard deductions, that would be useful information. I heard on the radio that the deduction for LTF (Long-Term Fund, supposedly for retirement purposes) has been extended for another year or two, too.

[bark]

The Vat tax only hurts the when buying products small single item products. If you have a business, you get the Vat back.

[onthemoon]

The Vat tax only hurts the when buying products small single item products. If you have a business, you get the Vat back.

The "Vat tax" would be the "valued added tax tax", and that would be double taxation (tax on a tax). That is not the case - at least not in Thailand.

If you have a business, you pay VAT on the value you add. In fact, that's the whole idea of a VAT (as the name says). You get the purchase VAT refunded (i.e. the tax you pay on the raw materials you buy), but have to bill your sales VAT and give that amount to the government. Your selling price will be higher than your buying price, and the difference in the price is the value you have added, and the amount of the tax you get refunded (when you bought) and you pay (when you sell) is not the same - the difference is indeed that VAT on the difference in value, or on the value you have added.

Only as a consumer, you don't get any VAT refunded. Hence, at the end of the day, the consumer pays the whole VAT on the final value that was added by the companies involved in the supply chain.