Corporate Tax Rate Cut to Boost Business Investment in Thailand

Business confidence took a hit in Thailand last year as flooding forced closures and saw foreign investors withdraw from Bangkok. A commitment to rebuild infrastructure teamed with a drop in the corporate tax rate has strengthened the outlook for 2012, according to Thailand law firm BSA Law. End Quote

(1888PressRelease) March 14, 2012 - Bangkok - Thailand's business outlook for 2012 has been strengthened by a commitment to rebuild infrastructure and drop the corporate tax rate.

Thai law BSA Law says government rehabilitation strategies should renew confidence and encourage business investment in Thailand.

It says a Royal Decree to Thailand law in December last year saw the corporate tax rate cut from 30 per cent to 23 per cent. This rate will drop to 20 per cent in 2013 and 2014.

The corporate tax rate reduction comes ahead of the nation's 2015 entry into the ASEAN Economic Community, which creates a single market environment for its members. The new rate - a significant change to business law in Thailand - will make the nation more competitive against neighbouring countries.

BSA Law spokesman Apisakde Kongkangwanchoke said the corporate tax rate cut was of critical importance for business.

"Legal services in Thailand are expecting this tax cut to be well received, especially by those with a foreign business investment in Thailand," he said. "By 2014, when the corporate rate drops to 20 per cent, this will make us the second most tax competitive nation in the region, behind Singapore.

"As always the devil is in the detail - we know that a review is underway which may mean that some Board of Investment privileges will be lost. So while the tax rate has dropped the tax net could be cast wider to recover revenue.

"We would certainly advise anyone with an existing business, or looking at starting a business in Thailand, to avoid any potential pitfalls by reviewing their situation with a tax consulting firm."

The Thailand law consulting firm says there is speculation that the rate of value added tax (VAT) will be lifted from seven per cent to 10 per cent to boost government revenue.

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

http://www.bsalaw.co.th

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