Individual income tax structure changed

 

In the executive decree, the maximum tax rate is lowered from 37 per cent to 35 per cent while tax brackets are expanded from five to seven during the 2013 and 2014 tax years. 

Under the new brackets, the minimum 5 per  rate will also be applied with taxable income upto Bt300,000, against Bt100,000 now. Those with taxable income below Bt150,000 will remain exempted from individual income tax.

Earlier, former Revenue Department director-general Satit Rungkasiri said that the change would dent the government's tax revenue by Bt25 billion per annum. As taxpayers will pay lower taxes, this should boost domestic consumption and benefit the economy in the long term. Moreover, this would make Thailand attractive for overseas workers, which is crucial under the regional integration in Asean.