{"id":9869,"date":"2025-08-15T15:07:04","date_gmt":"2025-08-15T08:07:04","guid":{"rendered":"https:\/\/fdi.co.th\/?p=9869"},"modified":"2025-08-15T15:16:24","modified_gmt":"2025-08-15T08:16:24","slug":"negative-income-tax","status":"publish","type":"post","link":"https:\/\/fdi.co.th\/en\/news\/negative-income-tax\/","title":{"rendered":"Update! Did you know? Starting in 2027, all Thai citizens will be required to file taxes. The Ministry of Finance is moving forward with the Negative Income Tax system \u2014 who will benefit and who might lose out?"},"content":{"rendered":"
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Digging deeper: What exactly is Negative Income Tax? Who stands to gain or lose \u2014 and can it really help reduce inequality?\u00a0<\/strong><\/h1>

Mr. Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance,<\/strong> stated that the ministry is currently developing a data infrastructure and a large-scale data lake connecting more than 10 government agencies. The system will cover over 60.8 million citizens and more than 600,000 businesses, in preparation for implementing and designing welfare policies under theNegative Income Tax (NIT) system. The initiative is expected to be launched by 2027.\u00a0<\/strong><\/em><\/p>

The Negative Income Tax (NIT) has become a topic of great interest, as one of its key principles is that all Thai citizens will be required to enter the tax system to declare their income. Those whose income falls below the taxable threshold will then receive government welfare benefits under this system.<\/p>

Clarifying \u201cNegative Income Tax\u201d or NIT what is it exactly?<\/strong><\/h2>

Negative Income Tax (NIT)<\/strong> or the \u201creverse income tax,\u201d<\/strong> . FINNOMENA<\/a> as an interesting concept in economics developed by economist Milton Friedman in the United States during the 1960s. It was designed to address the issue of overlapping and inefficient welfare programs that failed to reach the right target groups.\u00a0 This idea later evolved into the Earned Income Tax Credit (EITC) system, now implemented in several countries such as the United States, Canada, and the United Kingdom.<\/strong>\u00a0Under this system, the government collects taxes from high-income earners and provides payments to low-income individuals within the same framework.\nEven those whose income falls below the tax exemption threshold are still required to file a tax return, allowing the government to accurately gather income data and screen welfare eligibility more effectively. This mechanism also helps reduce redundancy among existing welfare programs.<\/p>

The basic principle is that:<\/p>