Tax Office reaps huge gains from business profits

PHUKET: If tax paid by businesses is any indication of an island’s prosperity, then Phuket has made a positively astounding recovery from the depths of the Asian crisis. According to the latest figures from the Phuket Provincial Revenue Office, revenue from Juristic Income Tax, levied on the net income of most companies and partnerships, is up by a massive 52.7% compared with last year. Businesses paid 317 million baht in the period from October 1 1998 to July 31 this year, compared with 207 million in the same period of the previous fiscal year. Not surprisingly, revenues from Special Business Tax – which is paid by banks, insurance and financial companies – were down by 27.9%, from 123 million baht to 89 million. Small falls were recorded in the two main sources of revenue, VAT (down 2.4% to 973 million baht) and Personal Income Tax (down 2.7% to 559 million baht). The Revenue Office collected a total of 1.97 billion baht in the 10-month period, keeping it on target to reach its budget of 2.28 billion for the year. Starting with its mid-September issue, the Phuket Gazette will publish a regular monthly column addressing a host of local tax issues, particularly as they relate to expatriates.