Quote:
TAXATION PERSONAL DEDUCTIONS
High living cost drives tax review
WICHIT CHANTANUSORNSIRI
The Revenue Department has proposed a tax amendment that would raise deductions for personal income taxpayers in light of rising living expenses.
Sangiam Satad, a ministry inspector-general, said the amendment would raise the deductions now offered under Section 42 of the tax code.
The section allows salaried workers to claim a deduction of 40% of income up to a maximum of 60,000 baht per year. Income from goodwill and licensing revenues is subject to similar deductions.
Amendments would lift deductions on revenue for contractors and independent professionals, rental income, commercial, agricultural and industrial activities.
''These changes are aimed at making the tax code more in line with the current economic environment. The cost of living now is considerably higher than in the past, and the changes will help reduce the tax burden for the public, particularly salaried workers,'' Mr Sangiam said.
Authorities are still discussing the size of the deductions. The reforms are part of a broader plan by the Finance Ministry to reform and modernise economic laws.
Over the past two years, changes have been made to help ease the tax burden on individuals, including raising tax exemptions by 20,000 baht to the first 100,000 baht in income and allowing a 30,000-baht deduction for individuals supporting a retired parent.
The Revenue Department wants to amend Section 65 of the tax code to eliminate differences in how dividend income is treated for corporate tax purposes.
Companies listed on the SET that receive dividend income from investments of 25% or more of total outstanding stock are exempt from having to consolidate dividend income into corporate tax liability.
Non-listed companies face a tax liability on dividend income. The amendment will eliminate the different standards and waive the need to consolidate dividend income into net profits for corporate tax purposes.