Personal Income Tax Rate Reduced

The Cabinet approved the personal income tax rate reduction on 18 December 2012 as proposed by the Ministry of Finance.

Keywords: Mazars, Thailand, Tax, Personal Income Tax, Ministry of Finance, Revenue Code

28 December 2012

The reduction is aimed at reducing an individual’s tax burden, which should lead to more consumption and boost the domestic economy in the long run.

The new rates under will be divided into eight brackets (currently five).

Annual Net Income (THB) Marginal Tax Rate Accumulated Tax Payable (THB)
Current Rate New Rate Current New Reduction
0 – 150,000 Exempt Exempt - -  
150,001 – 300,000  10% 5% 15,000 7,500 7,500
300,001 – 500,000  10% 10% 35,000 27,500 7,500
500,001 – 750,000  20% 15% 85,000 65,000 20,000
750,001 – 1,000,000  20% 20% 135,000 115,000 20,000
1,000,001 –  2,000,000  30% 25% 435,000 365,000 70,000
2,000,001 , 4,000,000  30% 30% 1,035,000 965,000 70,000
4,000,001 +  37% 35% N/A N/A N/A

 

According to the Cabinet’s resolution, the new structure of personal income tax rates is set to begin in 2013.

Consequently, the Act to Amend the Revenue Code will have to be passed by Parliament within March 2014 so that the new rates can take effect for the 2013 tax return to be filed in 2014.

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