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Government cuts income tax rates

Discussion in 'Tax issues' started by Makaveli, 20 Dec 2012.

  1. Makaveli

    Makaveli Thread Starter aka 2Pac Staff Member

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    The cabinet Tuesday approved an overhaul of the personal income tax structure amid criticism that the changes benefit mainly the rich.

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    The change will slash the highest personal income tax rate to 35 per cent, down from 37 per cent, effective on 2013 tax returns filed in 2014.

    The restructuring will cut the government's revenue in the 2013 fiscal year by 25 billion baht, the Finance Ministry said.

    Earners in the top tax bracket comprise the main portion of personal income tax collection, a ministry source said.

    Personal income tax rates under the new structure will be divided into seven brackets _ two more than in the previous tax regime.

    Those with a yearly income of 150,000 baht or less will be exempt from income tax, which is unchanged from the current system.

    Those in the second-lowest bracket who earn between 150,000 baht and 300,000 baht will have their tax rate drop to 5% from 10%.

    The tax changes are aimed at ensuring more fairness to taxpayers, said Thosaporn Serirak, a government spokesman.

    Some people, however, criticised the changes on social media, saying the overhaul mainly benefits rich people who will be paying less tax.

    "Many countries are moving to narrow the income gap between the poor and the rich by increasing taxes for the rich," tweeted Korbsak Sabhavasu, the former Democrat deputy leader. "Thailand has just cut taxes for the rich."

    Federation of Thai Industries chairman Payungsak Chartsutthipol applauded the changes.

    "This will strengthen the country's income distribution, allowing low-income earners to pay lower taxes," he said.

    "If they pay less tax, they'll have more to spend, and this will stimulate the economy," he said, suggesting the government will receive more revenue in the form of value-added tax.

    The income tax overhaul will also allow married couples to file their tax returns separately, a move that will save households money, but will trim around 7 billion baht from government revenues.

    The cabinet also approved a new excise tax structure for cars, and agreed to extend the diesel excise tax reduction of 0.005 baht per litre until the end of January next year. The current diesel excise tax reduction expires on Dec 31.
    Government cuts income tax rates | Bangkok Post: news


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    Last edited by a moderator: 26 Apr 2015
  2. Makaveli

    Makaveli Thread Starter aka 2Pac Staff Member

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    That counts me out then :biglaugh:
     
  3. slamb

    slamb Active Member

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    Good news for us high tax payers or no news for us that get paid in a brown envelope...:smile2:

    Hopefully good news for myself in my new job next year. :happy1:
     
  4. magnumforce

    magnumforce Active Member

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    Any change in the tax-free allowances?
     
  5. MisterStretch

    MisterStretch Guru di guru-guru Ingeris

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    It cuts my wife's taxes in half. She doesn't make as much as she should.

    For me...doesn't change a thing. I don't pay income tax in Thailand.
     
  6. ramses

    ramses Well-Known Member

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    The graphic shows the tax-exempt bracket will remain the same. Also, there is no mention of any changes to the tax code.
    Perhaps now I can persuade my wife to get a job. Incidentally, I think many foreigners (perhaps more than 1/2 on of our members) will have their tax rate cut in half.
     
  7. Wangsuda

    Wangsuda Nonentity Staff Member

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    I should get a small 5% reduction in my taxes! YAY!
     
  8. Makaveli

    Makaveli Thread Starter aka 2Pac Staff Member

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    Not sure about me, I will have to ask our staff....
     
  9. MisterStretch

    MisterStretch Guru di guru-guru Ingeris

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    When I mentioned this to her, after I posted she said, "Doesn't change for me. I don't have to pay taxes, my salary is too low."

    Now, that just sucks; university graduate, book keeper for more than 11 years and can't break the "poverty" barrier.
     

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