Corporate Income Tax Reduced to 20%

The National Legislative Assembly passed an amendment to the Revenue Code reducing the corporate income tax rate to 20%. The reduction will start on the fiscal year beginning 1 January 2016.  The amendment is expected to be published in the …

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Government Aims to Further Promote SMEs

In addition to its recent tax incentives targeting small and medium-size entities (SMEs) as reported here, the Thai government, through the Small and Medium Enterprise Promotion Committee, approved a nearly 2 billion THB budget to finance SME related projects. As …

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Tax Incentives Offered to Qualifying SMEs

Thailand has an estimated 2.8 million small and medium size entities (SMEs), with many having multiple financial accounts and which use with the smallest one used in order to understate tax liability. Effective as of 1 January, 2016, SMEs and …

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Thailand Tackles Transfer Pricing

On May 7, 2015, the Cabinet approved amendments to the Thai Revenue Code aimed to clarify Thailand’s position on transfer pricing.  Previously, the only guidance on transfer pricing has come more informally in via Revenue Department instructions (namely, Departmental Instruction …

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Revenue Department Targets Tax Dodgers

Facing tax revenues short of target, the Thai Revenue Department has announced it will launch investigations into possible income tax evasion. As reported in the Bangkok Post, the investigations will focus on owners of residential properties worth 40 million THB …

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Personal Tax Rate Reduction Approved by Royal Decree

The Thai Cabinet approved a bill to reduce personal income tax rates, as previously reported on our site here. The bill provides that the new rates will be retroactive starting January 1, 2013.  Recognizing that the bill would not be …

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Cabinet Considering Cuts To Personal Tax Rates

The Thai Cabinet announced on 18 December 2012 that it is considering cuts to personal income tax rates for 2013.  The current rates are set out here.  A graphic provided provided in the Bangkok Post depicts the changes, but in brief …

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Expanded Tax Exemptions for Provident Fund Distributions

Employees under 55 who participate in their employer's provident fund will be exempt from income tax with respect to any amounts maintained in such fund upon resignation, provided that such amounts remain in the provident fund until the employee reaches …

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‘Sin’ tax increase

 The excise tax on liquor and tobacco has increased, immediately raising the retail price of liquor and cigarettes (but not beer or wine), reports the Bangkok Post. The increases will not apply to beer and wine as they are already …

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The Future of Interest Deductions for Thinly Capitalized Firms

The Nation has reported that the Revenue Department is considering ending deductions for interest payments by thinly capitalized firms. According to Mr. Satit Rungkasiri, the director-general of the Revenue Department, highly leveraged companies, such as those with a debt-to-equity ratio …

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New Tax Relief For Flood Victims

Victims of floods or other natural disasters may be entitled to a tax exemption on any compensation received from governmental agencies or other bodies. The conditions for a tax exemption on such form of compensation has recently been addressed in …

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Cabinet Cuts Corporate Income Tax

The Bangkok Post reported on 11 October 2011 that Thailand's cabinet has approved a cut in corporate income tax as proposed by the Ministry of Finance, Deputy Finance Minister Boonsong Teriyapirom. Corporate income tax will be reduced from 30% to …

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Tax exemptions available for “partial business transfers”

On 18 April 2011 the Revenue Department passed Royal Decree No. 516 allowing for the exemption of VAT, Specific Business Tax and Stamp Duty in connection with a “partial transfer of business” between affiliated companies. The Revenue Department has since …

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DSI Investigates Phillip Morris

The Bangkok Post reported on 18 August that “[t]he Department of Special Investigation has decided to file charges against US tobacco firm Philip Morris Thailand for allegedly under-declaring the value of its products to evade taxes.”  The Bangkok Post also …

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