Thailand Lowering Taxes
January 5, 2016 Taxation in Thailand
BANGKOK – The government of Thailand is hoping to boost tax collections by lowering taxes and looking the other way over businesses’ past tax in-compliance.
On January 4th the Finance Ministry of Thailand announced that in 2017 individual taxpayers may see a cut in the rate of their income taxes, and business may see an easing of their tax obligations from the start of the current year.
Currently, the marginal rate of income tax faced by individuals lies between 5 percent and 35 percent.
However, in 2017 the rate could be reduced, with the top rate falling closer to the corporate tax rate of 28 percent, while the lower tax rates could be reduced further to provide relief to low income families.
The Ministry believes that the reduction of the tax rate may not lead to a reduction in tax collections, as it will lead to an increase in consumer spending.
Businesses will also enjoy some benefits, as from January 1st this year, any business which signs up to its “single financial statement programme” will be exempt from backdating probes into their previous financial and tax indiscretions.
Many businesses in Thailand actively keep two sets of financial records, one with its real figures, and one with downplayed profits to be used for its tax filing.
The government hopes to stop this practice with its new programme, in order to boost tax revenues.