Regional News
According to a Bangkok Post article dated Aug. 5, 2011, the new Thai government is lowering its corporate income tax rate from the current 30% down to 23% by next year and to 20% by 2013. While the new policy is expected to reduce Thai government revenue by 150 billion baht or roughly US$5 billion in the first three years, “revenue should return to normal” in the long run “as the effect of the tax cut encourages more businesses to enter the system, because legally tax payment is considered worthwhile compared with the risk of tax avoidance.”
Meanwhile, an article in the Thai Financial Post shows that the lower corporate income tax rate is seen quite positively by businesses as it will hopefully attract more foreign investors and, at the same time, help increase local entrepreneurs’ competitiveness.
“In Asean, Thailand and the Philippines have the highest corporate tax rates at 30%. Singapore has gradually reduced its rate to 17%. The global average is between 20% and 25%.”
Sources: Bangkok Post, Aug. 5, 2011 and
Thai Financial Post, July 26, 2011
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