News No.   :  5/2008

Date             :  28 March 2008

Subject        : Tax Package to stimulate the economy now partially effective

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                         Please note that the following tax measures to stimulate the economy are now effective: 1. Personal income tax exemption on the first 150,000 baht (from tax year 2008) 2. Tax exemption on the first net profits of 150,000 baht for SMEs with paid up capital on the last date of the accounting period not exceeding 5 million baht 3. Specific Business Tax cut from 3% to 0.1% on commercial or profitable sale of immovable property 4. Fee reduction to 0.01% for the transfer (previously 2%) and mortgage (previously 1 %) of property and condominiums, residences and commercial buildings in accordance with 3 Notices of the Ministry of Interior dated 24 March B.E.2551.

                         Mr. Satit Rungkasiri, Deputy Director-General and spokesperson of the Revenue Department, said, “The Revenue Department is consulting with the Department of Land to ensure that transfer or mortgage of secondhand houses also qualify for the same fee reduction. Right now we are in the process of amending the law.”

                         You may read Royal Decree No 470 (personal income tax) No. 471 (SMEs) 472 (Specific Business Tax) B.E. 2551 and 3 Notices of the Ministry of Interior dated 24 March B.E.2551 at www. ratchakitcha. soc.go.th or www.rd.go.th