Small and medium-sized enterprises (SMEs) will likely benefit from the Revenue Department's planned increase in tax-deductible expenses for individual taxpayers, as they should be the first group whose tax receipts and invoices are eligible.
The higher deductions are expected to be implemented in the 2014 tax year to be filed in 2015.
Director-general Sutthichai Sangkamanee said his department will initially allow tax receipts and invoices of SMEs to be used as proof of their tax claims.
The move is aimed at complying with the government's policy of promoting SMEs, he said.
As well, consumer requests for tax receipts and invoices will encourage SMEs not to understate their revenue and to pay the correct tax.
The department recently said it will double tax-deductible expenses for individual taxpayers to 120,000 baht by allowing taxpayers to claim the increased portion with tax receipts and invoices as supporting documentation in order to alleviate their tax burden.
Any such change must receive cabinet approval.
Taxpayers are now entitled to deduct expenses totalling up to 40% of their annual taxable income but not exceeding 60,000 baht.
Based on 10 million taxpayers at present, the additional expenses that could be deducted would total 600 billion baht, said Mr Sutthichai.
He said the department may also gradually reduce the portion of tax-deductible expenses already in effect and raise the new portion instead.
Separately, Mr Sutthichai said he has instructed district Revenue Department offices to tighten up on taxpayers' payments in their areas in a bid to maintain the pace of revenue collection.
The weaker-than-expected economy and the anti-amnesty bill protests may hurt some businesses and thus the government's revenue stream, he said.
The cabinet late last year approved an overhaul of the personal-income tax structure, expected to take effect for the 2013 tax year ending next month.
Under the new structure, personal-income tax brackets will be increased to seven from five.
Those with 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, earning 150,000-300,000 baht, will see their tax rate halved to 5%.
The change will also cut the highest income tax rate to 35% from 37%.