Thailand To Maintain VAT At 7% For Another Fiscal Year, Says Leading Law Firm BSA Law
BSA Law advises its clients that the National Council for Peace and Order (NCPO) has issued an order which effectively results in Thailand's 7% Value Added Tax being maintained for another fiscal year until 30 September 2015.
- (1888PressRelease) July 30, 2014 - Bangkok - The NCPO announced the VAT rate would be cut to 6.3% from this 1 October to next 30 September. However the 7% rate currently applied will be maintained because the 6.3% rate will have local tax of 0.7% added.
From 1 October 2015, the VAT will increase to 9% plus local tax of 1%. This will take the combined tax rate to 10%, the ceiling under Thai law.
The announcement by the NCPO effectively maintains the policy of the former government issued in August of 2012 to maintain VAT at 7% until 30 September. The administration wanted to stimulate consumer spending and spur the economy.
Apisakdi Kongkangwanchoke, spokesman for leading international law firm in Thailand, BSA Law, noted that VAT was first introduced in 1992 at the 10% rate, but this was immediately cut to 7% at the request of businesses who considered that rate was too high.
BSA Law specializes in providing various legal services and advice to foreigners in Thailand and local residents. This covers Thai labour law, Thai law in general, Thailand work permit and visa processes, starting a business in Thailand, accounting, auditing and tax consulting.
Many foreigners working in Thailand also use the services of law firms like BSA Law to help them file their yearly personal income tax returns, which they are required to do the same as their Thai colleagues.
The NCPO meanwhile has also agreed to extend the personal income tax and corporate income tax cuts for another year from 1 January 2014 to 31 December 2015 and from 1 January 2015 to 30 December 2015, respectively.
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.th
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