Thailand may explore taxing foreign investment income

BANGKOK, July 5 (TNA) - Thailand could be reviewing a new bill that will waive-off tax on foreign investment income says Finance Minister Kittirat Na Ranong, amidst concerns that it may affect national revenue. His clarification comes after a plea for the tax cut among Thai investors, who are planning to venture outside of the Kingdom for business. Speaking on Thursday after the 3rd Asian Development Forum in Bangkok, Kittirat said the Finance Ministry has been exploring options to restructure the national tax system, in order to lower the tax threshold. Corporate tax in Thailand has so far been adjusted to 23 percent from 30 percent previously, while the 20-percent mark may be implemented soon. The Finance Minister added that he was also looking at other proposals from the Thai investors, such as including marketing and business consultation expenses in calculating tax rebates, but made it clear that any change in the tax system must not affect national revenue. The Thai government had approved tax incentive packages for investment projects in flood-affected areas since last year, with a view to encouraging both new and existing investments, especially in Pathum Thani and Ayuthaya provinces. Previously, Thailand’s Board of Investment approved a set of urgent flood relief measures, including import duty exemption for manufacturers, whose raw materials were damaged by floods. This also included an extension of a tax-exemption period by six months for machinery imports. (TNA)