BANGKOK, Deputy Prime Minister Kittiratt Na-Ranong conceded yesterday the overhaul of the personal income tax structure would cost the state seven billion in revenue, but said the loss was acceptable.
Under the revamped tax structure, personal income tax rates, subject to progressive tax rates, are divided into seven brackets.
Those with a yearly income of 150-thousand baht or less will not be affected by the change. They remain exempt from income tax.
Those in the second-lowest bracket who earn between 150-thousand baht and 300-thousand baht will be taxed at 5%. Those who earn between 300 thousand and 1 baht to 500-thousand baht will be taxed at 10% while those in the 500-thousand and 1 to 750-thousand baht bracket will be taxed 15%, down from 20%.
Those who earn between 750-thousand and 1 baht to one million baht will be taxed 20%, the same as the current rate. Those who earn between one million baht and two million baht will be taxed 25%, down from 30%, while those who earn between 2,000,001 baht and four million baht will be taxed 30%.
Those who earn greater than four million baht will be taxed 35%, down from 37% currently.
Mr Kittiratt said that while high-income earners may not benefit much from the new table, low income earners will be able to save more.
By RADIO THAILAND & INSIGHT INFO
