Tax ceiling stays at 35%
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THE CABINET Tuesday agreed with the Finance Ministry's proposal to keep the personal income tax ceiling at 35 per cent next year but lower it the following year to boost the country's competitiveness against neighbouring countries.
“The extension does not include the lowering of the ceiling because the Revenue Department is still considering a new tax structure that is expected to be done and effective by 2017,” Finance Minister Apisak Tantivorawong said.
The government wants to lower the seven brackets of personal income tax rates so that the country can attract more foreign investment.
The ministry is studying whether to lower the tax ceiling or adjust the number of tax brackets. Presently, individuals earning less than Bt150,000 per year are exempt from paying income tax, while those making more than Bt4 million per year fall into the top 35-per-cent bracket.
Deputy Finance Minister Wisudhi Srisuphan said personal income tax rates should be made more consistent with the corporate income tax, which has already been brought down to only 20 per cent.
