BANGKOK, 14 September 2012 – The Finance Ministry is poised to review the current tax policies that have caused Thai businesses with overseas investment to face double taxation.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on Thursday that the Revenue Department is now looking into ways to avoid double taxation, which has led to tax evasion by Thai investors.
In order to rectify the tax hitch, the Revenue Department has been discussing probable solutions with representatives from the business sector, especially those from the OUT-OUT group, which is referred to companies with overseas investment that have already paid taxes in their host countries.
These companies are known to have been evading tax payment demanded in Thailand, due to the fact that such disbursement is duplicated.
Mr. Kittiratt reckoned that the matter is sensitive and requires thorough consideration as the government cannot allow tax exempt for these companies.
On the other hand, the Deputy PM said that Thailand has been active in attracting foreign investors to invest in the country. In doing so, the government has agreed to lower corporate tax for eligible companies from 30 percent to 23 percent, with a plan to adjust the rate lower to 20 percent in 2013.
Mr. Kittiratt said that such a policy is not biased and truly intended to help create employment in the country.