2016-06-23-KPMG_Global-Thailand_–_New_Proposals_Aim_to_Provide_Tax_Relief_6页_286kb

报告摘要

Thailand - New Proposals Aim to Provide Tax Relief Summary

Core Content

Thailand's Ministry of Finance introduced new proposed amendments to the personal income tax legislation on 19 April 2016. These changes aim to reduce the tax burden on individuals and enhance the country's competitiveness within the ASEAN Economic Community (AEC). The amendments include adjustments to tax brackets, deductible expenses, personal allowances, and filing obligations.

Main Changes

Tax Brackets

2016:
- 0 - 300,000: 5%
- 300,001 - 500,000: 10%
- 500,001 - 750,000: 15%
- 750,001 - 1,000,000: 20%
- 1,000,001 - 2,000,000: 25%
- 2,000,001 - 4,000,000: 30%
- 4,000,001 and Over: 35%
2017:
- 0 - 300,000: 5%
- 300,001 - 500,000: 10%
- 500,001 - 750,000: 15%
- 750,001 - 1,000,000: 20%
- 1,000,001 - 2,000,000: 25%
- 2,000,001 - 5,000,000: 30%
- 5,000,001 and Over: 35%
Key Change: The top two tax brackets expanded, with the 30% bracket now covering up to THB 5,000,000 (previously THB 4,000,000), and the 35% bracket starting at THB 5,000,001 (previously THB 4,000,001).

Deductible Expenses and Allowances

Standard Deduction Expense:
- 2016: 40% of income, capped at THB 60,000
- 2017: 50% of income, capped at THB 100,000
Deduction for Income from Copyrights, Goodwill, and Other Rights:
- 2016: 40% of income from copyrights, capped at THB 60,000
- 2017: 50% of income from goodwill, copyrights, and other rights, capped at THB 100,000
Allowances:
- Taxpayer: THB 30,000 in 2016, THB 60,000 in 2017
- Spouse (if joint filing or no income): THB 30,000 in 2016, THB 60,000 in 2017
- Joint Filing (spouse earns income): THB 60,000 in 2016, THB 120,000 in 2017
- Children:
  - 2016: THB 15,000 per child (up to 3 children), THB 2,000 for education in Thailand
  - 2017: THB 30,000 per child (no limit on number of children), education allowance canceled
- Deceased Estate: THB 30,000 in 2016, THB 60,000 in 2017
- Unincorporated Ordinary Partnership: THB 30,000 per partner in 2016, THB 60,000 per partner in 2017 (total cap THB 120,000)

Filing Obligation Thresholds

Single taxpayer:
- 2016: More than THB 50,000
- 2017: More than THB 100,000
Married taxpayer:
- 2016: Combined income more than THB 100,000
- 2017: Combined income more than THB 200,000
Deceased estate:
- 2016: More than THB 30,000
- 2017: More than THB 60,000
Unincorporated ordinary partnership or group of persons:
- 2016: More than THB 30,000
- 2017: More than THB 60,000

Key Implications

Tax Relief for Low to Medium Income Earners: The increase in standard deductions and allowances will reduce the taxable income for many individuals, potentially lowering their tax liability.
Reduction in Tax Burden for High-Income Earners: Individuals earning over THB 4 million will now fall into the 30% tax bracket instead of the 35%, resulting in potential annual savings of up to THB 50,000.
Impact on International Assignments: Employers involved in international assignment programs should update payroll systems and tax calculations for assignees, as the changes may lower overall tax costs.
Bracket Creep Concerns: Due to the lack of inflation adjustments in lower brackets, some individuals may move into higher tax brackets without a corresponding increase in income. However, the increased deductions and allowances are expected to offset this effect.

Next Steps

The proposed amendments are currently under review by the Thai Cabinet.
After Cabinet approval, the draft will be submitted to the Office of Council of State for consideration.
Parliamentary review and passage are the next steps, following which the royal decree will be announced in the Government Gazette.