News No.   :  18/2007

Date              : 29 May 2007

Subject        : PIT Allowance for home mortgage interest

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                        Today the cabinet approved the Finance Ministry’s proposal to provide additional tax privileges.  The maximum personal income tax (PIT) allowance amount (in the calculation of PIT) will be increased from 50,000 Baht to 100,000 Baht for residence mortgage interest paid to a bank or financial institution, a life insurance company, a cooperative, an employer, the property fund or mutual fund for resolving financial institution problem established under the law governing securities and exchange, a special juristic person or SPV subrogating the above loan creditors, or the Government Pension Fund. The increased amount is effective for the tax year 2007 onwards.        
            
                        Mr. Satit Rungkasiri, Deputy Director-General and the spokesperson of the Revenue Department, said “The increased allowance for home mortgage interest will affect our tax revenue collection.  Nevertheless, taxpayers will receive additional tax privileges.  This measure will correspond with the current economic situation and will assist taxpayers to buy their own residences.  Furthermore, it will stimulate the expansion of the domestic economy which should positively reflect on our tax revenue collection in the long run.”