Thailand’s Finance Ministry is hoping that the extension of the tax cuts will spur consumption and aid economic growth.
BANGKOK – Foreign investors in Thailand can breathe a little easier; the country’s new government has announced that it will extend the lowered rates of corporate income tax (CIT) and personal income tax (PIT) through the 2015 tax year.
Thailand’s Finance Ministry is hoping that the extension of the tax cuts will spur consumption and aid economic growth.
Therefore, the tax rates in 2015 for the following types of companies will be as follows:
- 20 percent CIT for companies with a net profit over THB1m (US$31,000), after being reduced for accounting periods in 2013 and 2014 from the previous 23 percent
- 35 percent PIT (which is the highest PIT rate) for annual incomes over THB4m (US$124,000), having been cut from 37 percent for the 2013 and 2014 tax years by the previous government
The Thai government defines PIT as “a direct tax levied on income of a person. A person means an individual, an ordinary partnership, a non-juristic body of person and an undivided estate. In general, a person liable to PIT has to compute his tax liability, file tax return and pay tax, if any, accordingly on a calendar year basis.”
CIT is defined as “a direct tax levied on a juristic company or partnership carrying on business in Thailand or not carrying on business in Thailand but deriving certain types of income from Thailand.”