New income taxes may be postponed

The new personal income tax rate will probably be delayed from taking effect for the 2013 tax year due to the political unrest, says Finance Ministry permanent secretary Rangsan Sriworasart.

Last month, the cabinet issued a royal decree to ensure the revised personal income tax structure takes effect in the 2013 tax year, to be filed next year. However, the royal decree has not been submitted for royal endorsement yet.

"If we can't complete the legal process by Dec 31, the new tax rate will be delayed until tax year 2014 at the earliest," said Mr Rangsan.

Late last year the cabinet approved the new personal income tax rates, which expand the previous five tax brackets to seven: 5%, 10%, 15%, 20%, 25%, 30% and 35%. The existing rates are 5%, 10%, 20%, 30% and 37%.

The top tax rate falls to 35% of taxable income from 37%, while the tax exemption for annual income below 150,000 baht remains in place. The tax cuts are meant to lower payments, particularly for middle-income earners, to boost domestic consumption, he said.

The new 5% rate will be applicable to those earning between 150,000 and 300,000 baht a year, with 10% for those who earn 300,001 to 500,000 baht, while 15% is for the 500,001 to 750,000 baht bracket, 20% is for 750,001 baht to 1 million baht, and 25% for those earning 1-2 million baht. The 30% tax bracket is for those on 2-4 million per year, while 35% is for over 4 million baht a year.

Share your thoughts

Discussion 1 : 12/12/2013 at 10:17 AM
It'd be interesting to know if anyone in Thailand has ever paid the 37%. My guess is no one ever has.
Discussion 2 : 12/12/2013 at 09:56 AM
How about a supertax on flip-flops?
Discussion 3 : 12/12/2013 at 08:41 AM
Employers have already been deducting tax based on the new rates. If this doesn't go through, nearly all taxpayers will face a tax bill at the end of the year. For people who budget tightly, they won't be able to pay this. It's going to cause a storm. Of course it won't affect the majority of PT's supporters as they don't pay any tax.
Discussion 4 : 12/12/2013 at 08:34 AM
These clowns had more then 1 year to seek royal endorsement and now it's due to the 2 week unrest? Election time around huh?
Discussion 5 : 12/12/2013 at 07:52 AM
Sounds like a reasonable plan shame it is being maybe squashed by all this nonsense. This would help the middle class and make the rich a little bit poorer but would not affect a majority people.
Discussion 6 : 12/12/2013 at 07:48 AM
But the very rich pay no tax
Discussion 7 : 12/12/2013 at 07:29 AM
This is Thailand. You cannot even be sure about the government's announcement of tax reductions. They are not sure of their quickness of getting through their own red-tapes. Don't blame foreigners for calling us under-developed.

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