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.
- Published: 12/12/2013 at 12:00 AM
- Newspaper section: breakingnews
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.
About the author
- Writer: Wichit Chantanusornsiri
- Position: Business Reporter