Bangkok (VNA) - Thailand’s government is considering easing personal income tax rules for individuals’ overseas income to encourage the remittance of those funds back into the country, a senior official has said.
The Ministry of Finance is mulling amending tax laws on income from foreign investments to create a more favourable environment for investors and lure Thais to repatriate their earnings, Deputy Prime Minister and Minister of Finance Pichai Chunhavajira said on February 13.
Thailand has recently revised its tax laws to align with the Organisation for Economic Cooperation and Development (OECD)'s regulations.
Previously, if a Thai taxpayer brought foreign investment income into the country within the same tax year it was earned, it is subject to income tax. If taxpayers transferred the money in a subsequent tax year, it will not be taxed.
However, last year the ministry amended this regulation, making foreign income taxable regardless of when it is brought into Thailand.
As the global economic landscape has changed, some countries no longer adhere to the original OECD rules, which has necessitated an adjustment to Thailand’s approach, Pichai said.
He also highlighted the fact that while some Thai citizens invest abroad, the amount repatriated is significantly lower than the amount that flows out. As such, the Ministry of Finance wants to rectify this and encourage citizens to bring money back home./.
VNA
