Foreign actors get new 10 % tax rate

In another effort to make Thailand an international film production centre, the cabinet yesterday agreed to ease personal income tax for foreign actors filming in the country.

It agreed to reduce the tax rate to a flat 10 % from the progressive rate of 5 % to 37 % normally applied.

More foreign film production in the country would increase the government's revenue from tax sources, offsetting the impact of lower rates, said Suparut Kawatkul, director-general of the Revenue Department.

A Finance Ministry Source said the country normally attracted 500 to 600 foreign feature film, documentary and commercial productions each year. An average of 10 major films a year with budgets of Baht 500 million each were made in Thailand. Mr Suparut said the tax reduction would make Thailand as competitive as the Philippines, Indonesia and Malaysia in attracting foreign film crews.

Bangkok Post, January 16, 2002

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