New Personal Tax Scheme Finally Approved
After a period of uncertainty, a royal endorsement confirming the new Taxation scheme has been given on the 23rd of the month and is applicable for the year of 2013. It’s already bringing smiles to tax payers in Thailand.
Individual taxpayers will start to see their net income bracket increase, as their income tax falls, saving the average taxpayer up to Bt7,500 annually.
What Are The Changes?
Under an executive decree approved by the Cabinet at the end of November, the number of income tax brackets will be expanded from five to seven during the 2013 and 2014 tax years, while the maximum tax rate was lowered from 37 per cent to 35 per cent.
The new 5% rate will be applicable to those earning between 150,000-300,000 baht a year, with 10% for those who earn 300,001-500,000 baht, 15% for 500,001-750,000 baht, and 20% for 750,001 baht to 1 million.
Avoiding Confusion and Remaining Compliant
Certainly the best advice we can provide for dealing with these recent changes is to make sure your Human Resource Management professionals are knowledgeable and remain continually abreast of the changes to the tax codes, and the impact these might have on your business structure.
CloudForce HR provides Payroll Outsourcing Services, which is one way many companies are avoiding the hassle and ensuring your payroll services are compliant with ever-changing legislation.