Upper level employees cover both highly skilled local and foreign professionals
Personal income tax for these professionals currently collected at up to 35% will be reduced to as low as 17% to attract them to work in this economic corridor.
At yesterday’s cabinet meeting, it endorsed a proposal of the Finance Ministry to lower personal income tax to attract both local and foreign highly skilled professionals such as specialists and researchers to work in 10 key industries targeted for development in the EEC.
Under the approval, they will be granted income tax rates of 17% from the previous highest rate charged at 35%.
But even with certain deductions, highly paid professional are still required to pay approximately 28%.
This maximum rate is normally charged for chief executives and upper level managers who earn over a million baht a month.
However if they choose to work in the EEC, they will be immediately granted the tax incentives.
With the tax privileges, the government hopes more and more professionals will be attracted to work in the eastern economic corridor.
Besides, the government says corporate companies wishing to employ these professionals will have to notify the Revenue Department beforehand under the proviso that their employment contract exceeds 180 days.
But the government says companies must not transfer professionals from its branches in other parts of the country in order to take advantage of the lower income taxes.