Tax Reform Proposal Targets Business Investment for Thailand

Top Quote Corporate tax rate cuts have been flagged as part of a proposed reform of Thailand's tax system. Changes to Thailand tax law would help business meet the cost of newly-elected Pueu Thai's promised minimum wage rise. Expert corporate legal service in Thailand, BSA Law, claims reducing corporate tax rates could also promote competition with other Asian nations. End Quote
  • (1888PressRelease) August 24, 2011 - Bangkok, Thailand - Thai business law firm BSA Law claims cutting corporate tax rates could help business meet proposed wage increases and improve competitiveness with other Asian nations.

    The newly-elected Pueu Thai Government, which came to power in a landslide victory on July 3, had earlier indicated it supported increased minimum wages for workers.

    It had promised to cut the corporate tax rate from 30 per cent to as low as 20 per cent. The promised Thai business law reform has been aimed at improving competition for Thai producers and increase foreign business investment in Thailand. The manufacturing and production of new energy technologies including bio fuels and solar equipment has been highlighted as critical areas of growth.

    There has been speculation any reduction in corporate tax rates could come at the cost of Board of Investment privileges, which includes tax breaks and incentives.

    BSA Law has welcomed proposals to reduce business cost pressures while increasing competitiveness. An experienced tax consulting firm in Thailand, BSA Law has been closely monitoring the tax reform debate. It offers an in-house accounting service for Thailand business and foreign enterprise.

    BSA Law spokesman Apisakde Kongkangwanchoke said that any changes to Thai law's Revenue Code would affect Thai companies and any foreign company with either a direct business investment in Thailand or with financial dealings with the south-east Asian nation.

    "Any registered company, partnership or profit-seeking venture will be affected by changes to Thailand law's Revenue Code, including foreign enterprises. Under Section 76 of the Revenue Code foreign companies or partnerships that use a Thai 'go-between' must file a tax return, although the definition of a 'go-between' is open to interpretation."

    Mr Kongkangwanchoke said the timing of any corporate rate cut had not been announced, but that Thai business law and tax law experts believed it would be in place when Thailand joined the ASEAN Economic Community (AEC) in 2015. The AEC would allow the untaxed movement of labor, goods and investment between ASEAN member nations.

    Mr Kongkangwanchoke said Thailand's geographic location in the heart of south-east Asia gave it an economic advantage.

    About BSA Law:

    For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. BSA Law seeks to provide international standards of legal services while retaining the customs of the Thai business culture.

    For more information please contact:

    Jim Byrne
    Business Advisor, BSA Law.
    Email: jim ( @ ) bsalaw dot co dot th

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