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Thailand To Cut Corporate Tax

by Mary Swire, Tax-News.com, Hong Kong

23 September 2011


Thailand’s new government has re-confirmed its intention to reduce the rate of corporate income tax in order that businesses would be able to cope with the higher costs arising from its policy of increasing the country’s national daily minimum wage.

In that regard, while the national daily minimum wage is to be raised to THB300 (USD9.82), an increase of some 90% over current levels, it is expected that the current 30% corporate income tax rate will initially be cut to 23%, possibly from January 1, 2012, and will be further reduced to 20% in 2013.

The Deputy Prime Minister and Commerce Minister, Kittirat Na Ranong, said the move was intended to enable private companies to retain more of their profits to compensate for the minimum wage increases. However, it has been suggested that the measure would also be useful as it could restore international competitiveness to Thailand’s corporate income tax rates.

While Kittirat also indicated that individual income tax cuts were possible in the next three years, the government would have to widen the income tax base before that was possible.

TAGS: tax | business | fiscal policy | entrepreneurs | employees | corporation tax | Thailand | tax rates | individual income tax

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