In December 2012, the Thai government proposed changes in personal income tax rates to be effective for the 2013 tax year, with the effect of increasing net disposable income for many taxpayers.
Until recently, no bill on this matter was submitted to the Thai Parliament and the legislative process appeared to have stalled. However, on 30 July 2013, the Thai Cabinet approved a bill for submission to the Thai Parliament, with the goal of becoming effective by the year-end and with the new rates retroactive to January 1, 2013. Under the proposed changes in the bill, a 5% bracket would apply to incomes up to THB 300,000, a 15% bracket would replace the current 20% bracket on incomes from THB 500,001 to 750,000, and a bracket of 25% would apply to earnings from THB 1,000,001 to THB 2,000,000. Finally, the top marginal tax rate on income above THB 4,000,000 would be reduced from 37% to 35%.
The Thai Cabinet has also also approved changes to the tax rates for ordinary partnerships to 20% of net taxable income and for groups of persons to 20% of gross taxable income (although it remains unclear when these new rates are to take effect).
We will continue to monitor future developments and post updates accordingly. For more information on taxation in Thailand, please see the Taxation section of our website here.
last updated 6 August 2013