Cabinet approves a new personal income tax rate which decreases revenue by 27,000 million Baht. Government hopes this tax cuts will help long term economic recovery.
Date: July 31, 2013
Under the proposed Act the new income tax rates will be as follows:
For a person with a net income of:
– Not more than three hundred thousand baht will be 5%;
– Between three hundred thousand up to five hundred thousand baht will be 10%;
– Between five hundred thousand baht up to seven hundred and fifty thousand baht will be 15%,
– Between seven hundred and fifty thousand Baht up to 1 million Baht will be 20%;
– Between 1 million Baht up to 2 million Baht will be 25%,
– Between 2 million Baht up to 4 million Baht will be 30%; and
– From 4 million baht or more will be 35%.
However, according to Royal Decree (No. 470) B.E. 2551 those tax payers whose net income is less than 150,000 Baht shall not be subject to the new tax rate.In addition, under the proposed Bill non-juristic partnerships will pay income tax at the rate of 20% and non-juristic bodies of persons will be required to pay income tax calculated at the rate of 20% of their gross income. This Bill is proposed to be effective in this tax year B.E. 2556 for income tax returns lodged within March of next year (B.E.2557).
The Ministry of Finance reported that improving the income tax rate schedule will reduce tax revenue in fiscal year 2556 by around 27,000 million baht, however, these tax cuts will stimulate domestic consumption and provide a positive impact on the economy in the long term.
Source: Matichon newspaper / Cabinet Resolution on July 30, 2556