Cabinet approves tax relief for SMEs

Cabinet approves tax relief for SMEs

The cabinet has approved tax relief proposals for small- and medium-enterprises (SMEs) affected by the increase in the nationwide minimum daily wage to 300 baht, which took effect on Jan 1.

The measures are aimed at helping SMEs with annual revenue not exceeding 50 million baht a year, and were proposed by the Finance Ministry after an approach by the private sector.

Sathit Rangkasiri, director-general of Revenue Department. said the measures raising the income tax exemption limit for SMEs from 150,000 baht to 300,000 baht a year. SMEs declaring income between 300,000 and one million baht will be taxed at 15% and those with over one million baht profit will pay tax at 20% on the difference.

The withholding tax for SMEs will also be cut to 2% from 3%, and they will be allowed to claim depreciation on  machinery of 100% in the first year of purchase until the end of 2013, an extension of one year from the end of 2012. 

It is estimated that the measures will cut tax revenue by about 2.8 billion baht.

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