New tax rates to take effect this year

The new personal income tax rates have been royally endorsed and will take effect in the 2013 tax year, Revenue Department director-general Sutthichai Sangkamanee said on Saturday.

Mr Sutthichai said the endorsement is expected to be published on the royal gazette in the next few days.

Tax payers who are low to middle income earners will benefit from the new rates, which provide tax reductions of between 5% and 50%.

Late last year the cabinet approved the new rates, which expand the previous five tax brackets to seven: 5%, 10%, 15%, 20%, 25%, 30% and 35%. The current 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 to boost domestic consumption.

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 million to 2 million baht. The 30% tax bracket is for those on 2 million to 4 million per year, while 35% is for over 4 million baht annually.

Share your thoughts

Discussion 1 : 15/12/2013 at 12:00 PM
How many pay their income tax in Thailand ? Last time I checked it was 2.7 % (foreigners included) from iPhone application.
Discussion 2 : 15/12/2013 at 12:54 AM
At least some people in specific tax brackets will benefit with the new structure. 0 to 150,000 = tax exempt 150,001 to 300,000 = 5% (down from 10%) 300,001 to 500,000 = 10% (no change) 500,001 to 750,000 = 15% (down from 20%) 750,001 to 1,000,000 = 20% (no change) 1,000,001 to 2,000,000 = 25% (down from 30%) 2,000,001 to 4,000,000 = 30% (no change) above 4,000,000 = 35% (down from 37%)
Discussion 3 : 15/12/2013 at 12:21 AM
you don't apply the 20% to all the income... you apply 5% for the first 300,000, then 10% until 500,000, then 15% until 750,000.. finally you apply 20% for the 1 Baht that exceeds 750,000 in your example.
Discussion 4 : 14/12/2013 at 06:07 PM
These new Tax Rates are very poorly structured. Let us take an individual who makes 750 000 Baht per year. That results in a tax rate of 15% or 112500 Baht. Now the same individual receives a pay increase of one Baht and makes 750 001 Baht per year. The resultant tax now is 150 000 Baht because of the 20% tax bracket.. So this induvidual will pay 37500 Baht more in taxes because of an one Baht pay raise. Does this make sense?
Discussion 5 : 14/12/2013 at 11:10 AM
Best news this week. Better late than never.
Discussion 6 : 14/12/2013 at 11:03 AM
What I see is that the very riches and wealthy people earning more than 4'000'000B/year (+350'000B/month) are going to pay 2% taxes less (from 37% now to 35% new system). In my opinion that's not very fair. Moreover there are new brackets 25% and 35% for the middle and middle+ class BUT nothing for helping the poorest earning between 150'000B to 500'000B/year who will still have to pay 5% and 10% taxes. In any countries, normally the richest should try to help the poorest, but in Thailand the Government helps the richest by decreasing their taxes down 2% and it keeps the previous tax rates 5%-10% for the poorest. Difficult to understand.
Discussion 7 : 14/12/2013 at 11:00 AM
Good for the upper class, but nothing for the others.

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