Changes to Personal Income Tax and Corporate Taxes
In mid- April, the Thai cabinet approved a restructuring of personal income tax, which will come into force for the 2017 tax year. In the changes, the personal, spouse/ partner allowances, currently at Baht 30,000 a year, will increase to Baht 60,000; thus up to Baht 120,000 per couple. The limit for estate deductions has also doubled to Baht 60,000; as has the maximum child allowance, to Baht 30,000 per child; whilst the threechild limit on that allowance and the Baht 2,000/ child education allowance have been removed. The expenses allowance limit has also been increased to 50% of annual income, with a Baht 100,000 maximum ( the current rate is 40% with a Baht 60,000 limit). In addition, the 30% tax band has been wid- ened to a bracket of Baht 2,000,0015,000,000. In a separate decision, a Royal Decree has been issued allowing corporations or registered partnerships to deduct research and development expenditure on their tax returns for up to three folds.