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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