Cabinet nod for tax-cut bill

Economy July 31, 2013 00:00

By Piyanart Sriwalo,
Nakarin Sri

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The Cabinet yesterday approved in principle a draft bill to revise the personal and business (non-juristic person) income tax rates, which would lower the tax burden on lower-income groups and introduce a more equitable income tax structure

It also approved to forward the bill to the House for consideration so that it can take effect in time before the tax payment deadline next year, deputy spokesman of the PM’s Office, Pakdeeharn Himathongkam, said.
The taxable personal income base will be broadened as follows: 
_ 5 per cent tax rate for Bt0-300,000 income instead of the previous Bt0-100,000 and 10-per-cent tax for Bt100,000-Bt300,000;
_ 10 per cent tax rate for Bt300,000-Bt500,000; 
_ 15 per cent for Bt500,000 to Bt750,000 compared to the previous 20 per cent
_ 20 per cent for Bt750,000 to Bt1 million remains unchanged;
_ 25 per cent for Bt1 million to Bt2 million (previously 30 per cent); 
_ 30 per cent for Bt2 million to Bt4 million remains unchanged
_ 35 per cent for Bt4 million and above, compared to the previous 37 per cent. 
Common partnership-type business entities (non-juristic person) will be subject to 20 per cent tax rate on net income, while individuals (non-juristic persons) will be subject to 20 per cent of estimated income The new personal income tax structure will be applicable for the 2013 income tax year, returns for which will be filed in 2014. 
Satit Rangkasiri, director-general of the Revenue Department, said this measure could affect the state’s revenue for fiscal 2013 by about Bt25 billion, but it would boost the net income of taxpayers, which would stimulate consumption accordingly. 
This will benefit the country’s economy and tax base in the long run.
Meanwhile, the state will earn higher tax revenue of about Bt2 billion from individuals (non-juristic person) and common partnership-type business entities (non-juristic person) from the revised personal income tax structure.