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19 November 2010
Ministry of finance Thailand?s is undertaking a review of the structure tax country?s, which could see a significant reduction in the company and the revenue associated with an increase in the rate of value added tax rate tax (VAT).
While it has been said that the review is still at an early stage, its objective would be to increase the international competitiveness of Thailand?s and thus stimulate investment in the economy, as well as to rebalance the government?s tax revenues.
The tax reform package would include a substantial reduction in the rate of tax on the income of the current 30% to 18%, to harmonize its level with other rates established in the région.Cela could also mean that the highest rate of income tax is reduced to 25% 37% at the present time.
However, to balance these reductions, it would be necessary produce other sources of income ? perhaps by increasing the rate of the TVA.Il was reported that each point percentage cut in corporate and personal income tax will reduce public by some THB6bn (USD200m) revenues while one percent of the sales tax rate increase would provide an additional THB60bn to the coffers of the government?s.
The tax reform proposed, which could be broad and includes, for example, re-jigging Investment?s, Council tax incentives is supposed to be ready early next year.
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