Le­gal Up­dates

Changes to Per­sonal In­come Tax and Cor­po­rate Taxes

Thai-American Business (T-AB) Magazine - - Contents - For more in­for­ma­tion con­tact Price­sanond at pspw@price­sanond.com

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.

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