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Highlights of the package is the higher deductible amounts each individual is allowed to deduct from their taxable income.

 Individuals whose taxable income is below Bt150,000 are exempted from income taxes. The previous limit is Bt100,000.

 Individuals can also deduct upto Bt100,000 of their life insurance premiums from their taxable income, from currently Bt50,000.

 The maximum deductible limit for provident funds, retirement mutual fund (RMF), pension funds, as well as contributions to private schools is raised from Bt300,000 to Bt500,000.

 The deductible amount of long-term fund (LTF) investment is raised from Bt300,000 to Bt500,000.

Individuals whose parents, children or spouses are physically impaired can deduct expenses up to Bt30,000 a year.

To promote SMEs and community enterprises, businesses with taxable income under Bt1.2 million are exempt from income taxes.

Corporate taxpayers with no more than Bt5 million in paid-up capital are exempt from taxes for the first Bt150,000 in net profit. Additional profits are subject to progressive rates - less than Bt1 million, 15 per cent; Bt1 million but less than Bt3 million, 25 per cent; and over Bt3 million, 30 per cent.

To promote investment and strengthen competitiveness, individuals and companies can deduct up to 1.25 times actual investment in energy-saving equipment procured by December 2010.

Companies can depreciate 40 per cent of the cost of machinery and equipment on their delivery date for items acquired by December 2010.

Companies can depreciate computer software over three accounting years.

Companies with fixed assets, excluding land, worth no more than Bt200 million and with no more than 200 employees can depreciate up to 40 per cent of software cost on the delivery date. The rest can be depreciated over three accounting years. They can also expense up to 100 per cent of the cost of an asset for total cost not exceeding Bt500,000 on assets acquired by December 2010.

Companies listing on the Market for Alternative Investment are entitled to a 20-per-cent corporate income tax rate, instead of the 30-per-cent rate, for three accounting years after listing. Those listing on the Stock Exchange of Thailand are entitled to a 25-per-cent tax rate for three years.

The privileges are for companies submitting listing applications from this past January to December 2009 for listing by December 2009.

Companies already listed on the MAI are entitled to the 20-per-cent rate for net profit not exceeding Bt20 million for three years. Those listed in the main bourse can enjoy the 25-per-cent rate for profits not exceeding Bt300 million for three years.

The special business tax on property transactions, undertaken in a one-year period, was cut from 3 per cent to 0.1 per cent. Property transfer and mortgage fees were reduced from 2 per cent to 0.01 per cent.

The 0.01-per-cent fee is also applicable to the transfer of office buildings.

- The Nation