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Thailand mulls tax breaks to attract overseas investment

Thailand mulls tax breaks to attract overseas investment

Provided by Nation.

Thai government looks at relaxing personal income tax regulations for citizens with overseas earnings

 

Finance Minister Pichai Chunhavajira announced on Thursday that the Ministry of Finance is reviewing the current tax regulations for income earned abroad and remitted back to Thailand.

 

The aim is to create a more favourable environment for investors and encourage them to repatriate funds.

 

Thailand recently amended its tax laws to bring them in line with Organisation for Economic Co-operation and Development (OECD) guidelines.

 

Previously, income earned abroad was only taxed if it was brought into Thailand in the same year it was earned. The change meant that all repatriated income, regardless of when it was earned, became subject to income tax in the year it entered the country.

 

 
However, Pichai explained that the global economic landscape has shifted, with some countries no longer adhering to the original OECD rules. This necessitates an adjustment to Thailand’s approach. He highlighted the fact that while some Thai citizens invest abroad, the amount of capital being repatriated is significantly lower than the outflow.

 



 


“Currently, investment within Thailand is declining,” Pichai stated. “While those with income to spare are investing overseas, the amount they’re bringing back is less than the amount they’re investing. We want to rectify this and incentivise them to bring their money back home.”
 
 

Under current regulations, Thai citizens with overseas income are liable for income tax when they bring those earnings into the country. The Finance Minister confirmed that this legislation is under review but stressed that the details of any potential changes, including the timeline for implementation and any qualifying conditions, are still being studied and no decision has been taken.

NATION

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AFP-JIJI PRESS NEWS JOURNAL


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