To cope with the higher costs arising from its policy of increasing the country’s national daily minimum wage the new government of Thailand has re-confirmed its intention to reduce the rate of corporate income tax. The government expressed opinion to initially cut the current 30% corporate tax to 23% possibly from 1 January 2012 and will be further reduced to 20% in 2013.
The move was intended to enable private companies to retain more of their profits to compensate for the minimum wage increases and it is also expected that it could restore international competitiveness to Thailand’s corporate income tax rates.
