The Revenue Department is currently adjusting the income tax exemption structure to reduce benefits for high-income earners and increase benefits for low- and middle-income earners.
Ekniti Nitithanprapas, director-general of Revenue Department, said that under the current structure, the top 20% of income earners enjoy 80 to 90 percent tax exemption, while middle and low-income earners see fewer benefits.
Previously, 15% of LTF investments of up to 500,000 baht could be deducted from taxable income. However, the LTFs (long-term equity funds) are no longer entitled to income tax deduction.
The department is offering income earners a 30% deduction on Super Saving Fund investments of up to 200,000 baht.
The director-general also said the tax restructuring will benefit low- and middle-income earners, reduce benefits for high-income earners, and allow the Revenue Department to earn more revenue from tax collection.
In addition, income earners can cite several investments as tax-deductible including RMFs (retired mutual funds), with 30 percent of up to 500,000 baht deductible and life insurance of up to 100,000 baht from taxable income. (NNT)
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