Post by Fletchsmile on Jan 7, 2016 10:03:28 GMT 7
Apart from the tax overhauls the main thing that jumps out again is the numbers and breakdowns of people who actually pay tax:
- Only 24,700 people declared taxable income of over THB 4 mn per year which would put them in the top tax bracket. (or one in about 2,700 people)
When you look at the number of mercs, BMWs etc around Bangkok, and customers in high-end shopping centres buying luxury goods, kids at top fee paying schools, there seems to be a hell of a lot more wealth around than is paid tax on
- 10.6mn people submit tax returns (about 1 in 6 people) but of these 6.4 mn are tax exempted as too low. That leaves just 4.2 mn people paying income tax, which is around 6% of the population or 1 in 16
So you can really see where the divides come from:
.... with a few middle class earners (a large proportion who will be in BKK) paying most of the income tax for corrupt politicians to feed off, before then passing the remainder on to be squandered further by populist vote buying policies for the rest of the country who pay nothing.
.... with a large number of poor people not earning enough to pay tax
.... meanwhile the elites and corrupts escape, as shown that only 25k pay the top rate of tax
Cheers
Fletch
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Personal income tax faces overhaul
Taxpayers encouraged to have more children
Published: 4/01/2016 at 07:30 AM
Newspaper section: Business
A personal income tax overhaul, including a cut in the highest bracket, will go before the cabinet for approval by March.
The Revenue Department has proposed four adjustments to Finance Minister Apisak Tantivorawong for deliberation early this year, said director-general Prasong Poontaneat.
After getting the cabinet's nod, the new structure will be forwarded to the National Legislative Assembly for consideration and come into force on Jan 1, 2017.
Mr Prasong said personal income tax will be overhauled comprehensively -- from adjustments to each tax bracket, deductions and allowances to lifting the maximum child allowance from three children to encourage people to have more children.
Personal income tax changes aim to benefit low and middle-income earners and create fairness for those who pay the top rate of 35%.
The department plans to trim the highest tax bracket to be close to the combined 28% of corporate income and withholding taxes, but an appropriate level must be determined as corporate tax has a single rate while personal tax has seven brackets.
Personal income tax also has more deductions and allowances than corporate tax. Deductions for personal income tax include life insurance premiums, mortgage interest and investments in long-term equity funds and retirement mutual funds.
Under the current structure of personal income tax, taxable income of 150,000 baht or lower is exempt from tax, 150,001 to 300,000 baht is charged at 5%, 300,001 to 500,000 baht is charged at 10%, 500,001 to 750,000 baht is charged at 15%, 750,001 to 1 million baht is charged at 20%, more than 1,000,001 to 2 million baht is charged at 25%, 2,000,001 to 4 million baht is charged at 30% and more than 4 million baht is levied at 35%.
About 10.9 million people submit tax filings to the Revenue Department, but 6.4 million are exempted because their incomes are too low.
The department reported for 2014 the largest taxpayer group of 1.63 million were those earning 150,001 to 300,000 baht a year. Only 24,700 declared income of over 4 million baht.
Mr Prasong said the department may raise the maximum tax allowance for annual expenses from 60,000 baht to 100,000 or 120,000 baht as expenses for food and clothing are now much higher.
www.bangkokpost.com/business/news/815104/personal-income-tax-faces-overhaul
- Only 24,700 people declared taxable income of over THB 4 mn per year which would put them in the top tax bracket. (or one in about 2,700 people)
When you look at the number of mercs, BMWs etc around Bangkok, and customers in high-end shopping centres buying luxury goods, kids at top fee paying schools, there seems to be a hell of a lot more wealth around than is paid tax on
- 10.6mn people submit tax returns (about 1 in 6 people) but of these 6.4 mn are tax exempted as too low. That leaves just 4.2 mn people paying income tax, which is around 6% of the population or 1 in 16
So you can really see where the divides come from:
.... with a few middle class earners (a large proportion who will be in BKK) paying most of the income tax for corrupt politicians to feed off, before then passing the remainder on to be squandered further by populist vote buying policies for the rest of the country who pay nothing.
.... with a large number of poor people not earning enough to pay tax
.... meanwhile the elites and corrupts escape, as shown that only 25k pay the top rate of tax
Cheers
Fletch
==================================================
Personal income tax faces overhaul
Taxpayers encouraged to have more children
Published: 4/01/2016 at 07:30 AM
Newspaper section: Business
A personal income tax overhaul, including a cut in the highest bracket, will go before the cabinet for approval by March.
The Revenue Department has proposed four adjustments to Finance Minister Apisak Tantivorawong for deliberation early this year, said director-general Prasong Poontaneat.
After getting the cabinet's nod, the new structure will be forwarded to the National Legislative Assembly for consideration and come into force on Jan 1, 2017.
Mr Prasong said personal income tax will be overhauled comprehensively -- from adjustments to each tax bracket, deductions and allowances to lifting the maximum child allowance from three children to encourage people to have more children.
Personal income tax changes aim to benefit low and middle-income earners and create fairness for those who pay the top rate of 35%.
The department plans to trim the highest tax bracket to be close to the combined 28% of corporate income and withholding taxes, but an appropriate level must be determined as corporate tax has a single rate while personal tax has seven brackets.
Personal income tax also has more deductions and allowances than corporate tax. Deductions for personal income tax include life insurance premiums, mortgage interest and investments in long-term equity funds and retirement mutual funds.
Under the current structure of personal income tax, taxable income of 150,000 baht or lower is exempt from tax, 150,001 to 300,000 baht is charged at 5%, 300,001 to 500,000 baht is charged at 10%, 500,001 to 750,000 baht is charged at 15%, 750,001 to 1 million baht is charged at 20%, more than 1,000,001 to 2 million baht is charged at 25%, 2,000,001 to 4 million baht is charged at 30% and more than 4 million baht is levied at 35%.
About 10.9 million people submit tax filings to the Revenue Department, but 6.4 million are exempted because their incomes are too low.
The department reported for 2014 the largest taxpayer group of 1.63 million were those earning 150,001 to 300,000 baht a year. Only 24,700 declared income of over 4 million baht.
Mr Prasong said the department may raise the maximum tax allowance for annual expenses from 60,000 baht to 100,000 or 120,000 baht as expenses for food and clothing are now much higher.
www.bangkokpost.com/business/news/815104/personal-income-tax-faces-overhaul
