Thailand accelerating its study of tax reforms
The Ministry of Finance is accelerating its study of tax reforms, including a 15% VAT adjustment and a 15% corporate income tax rate, in line with the Global Minimum Tax. Additionally, it is examining a 15% personal income tax rate to attract skilled workers to Thailand.
Finance Minister Pichai Chunhavajira stated that the Ministry of Finance has a strategy to improve tax collection to align with current circumstances, which includes:
– Corporate income tax: Following global discussions on the Global Minimum Tax (GMT), which led to tax adjustments for corporate income tax rates in various countries, Thailand plans to reduce its corporate tax rate from 20% to 15%.
– Personal income tax: Studies will be conducted to encourage working in Thailand, possibly reducing the rate from 35% to 15%.
– Value-added tax (VAT), or consumption tax: Globally, VAT ranges from 15-25%, while Thailand currently collects VAT at 7% instead of the 10% set rate. Singapore collects VAT at 9%, and European countries typically levy VAT at 20%.
VAT is particularly sensitive for the general public, but if implemented effectively, it could help reduce the gap between the wealthy and the poor.
A report from the Ministry of Finance indicated that the Deputy Prime Minister and Minister of Finance has assigned the Fiscal Policy Office (FPO) and the Revenue Department to study and consider the details of these issues.
Source: Thai Enquirer on twitter
