Revenue Department to cut high earners’ tax benefits
The Revenue Department is further adjusting its income tax exemption structure to reduce benefits for high-income earners and increase them for low- and middle-income earners, the department chief said on Monday.
Ekniti Nitithanprapas said that under the current structure, the top 20 per cent of income earners enjoyed 80 to 90 per cent of tax exemption packages offered by the department, while middle/low-income earners saw few benefits.
Ekniti said the changes would boost tax revenue.
The change follows the earlier cancellation of tax exemption on LTF (long-term equity funds). Earlier, 15 per cent of LTF investments up to Bt500,000 could be deducted from taxable annual income.
The department is instead offering income earners a 30-per-cent deduction on Super Saving Fund investments up to Bt200,000.
“The restructuring will benefit middle- and low-income earners, reduce benefits enjoyed by high-income earners and allow the Revenue Department to earn more revenue from tax collection,” Ekniti said.
Currently, income earners can cite several investments as tax deductible. These include RMF (retired mutual funds), with 30 per cent of up to Bt500,000 deductible from annual taxed income. They can also deduct life insurance up to Bt100,000 from taxable annual income.
