(9/2008)

Royal Decree No 470

The personal income tax exemption for net assessable income is increased from Baht 100,000 to Baht 150,000.

The above exemption will be effective for taxable income arising from 2008 onwards.

Royal Decree No 471

Small and medium enterprises (SME) are granted exemption from corporate income tax for the first net taxable profit of Baht 150,000. SME is defined as those with a paid-up capital of no more than Baht 5 million at the end of the accounting period.

The net taxable profit over Baht 150,000 will be taxed as follows.

- 15% on net profit exceeding Baht 150,000 but not exceeding Baht 1 Million,
- 25% on net profit exceeding Baht 1 Million but not exceeding Baht 3 Million,
- 30% on net profit exceeding Baht 3 Million.

All the above tax measures will be effective for the accounting period commencing on or after 1 January 2008.

Please note that the reduced corporate income tax rates continue to apply for the net profit arising during the accounting periods which commenced before 1 January 2008 as follows:

- 15% on net profit not exceeding Baht 1 million,
- 25% on net profit exceeding Baht 1 million but not exceeding Baht 3 million,
- 30% on net profit exceeding Baht 3 million.

Royal Decree No 472

The rate of specific business tax (SBT) on the sale of immovable properties in a commercial manner or for profit is reduced from 3.0% to 0.1% (3.3% to 0.11% inclusive of the 10% municipality tax).

The above reduced rate will be applicable for the registration of rights and juristic acts relating to the sale of immovable properties executed within one year from 29 March 2008.

Notifications of the Ministry of Interior

The registration fee for the transfer of immovable property is reduced from 2% to 0.01% for the purchase and sale of the following immovable properties:

- Land, building, building with land under the law governing Land Apportionment, or land apportioned by a government body, whereby building includes single house, duplex house, row house and commercial building.

- Condominium units

- Office building whether a building or a building with land granted a construction permit or construction notice under the law governing Building Control.

The fee for the registration of a mortgage for the above immovable properties is also reduced to 0.01%.

The above fees will be applicable for one year from 29 March 2008.