Keywords: Mazars, Thailand, Tax, SMEs, Royal Decree No. 561, Royal Decree No. 562, Revenue Code
10 July 2013
The tax measures which have been extended are as follows:
1. Royal Decree No. 561 extends the period for corporate income tax exemption on income derived by SMEs from the sales of machinery used in the business in order to purchase new machinery for replacement until 31 December 2013.
2. Royal Decree No. 562 extends the period for allowing the additional deduction of 50% for SMEs on the difference between the newly announced minimum wages of THB 300 per day and the higher of the minimum wage rate per the Announcement of the Wages Committee (NO. 6) dated 2 November 2011 or the previous minimum wage rate until 31 December 2013.
3. Royal Decree No. 563 extends the period for allowing the 100% depreciation in the first year for the cost of new machinery purchased until 31 December 2013 by SMEs to be used in the production of goods or the manufacturing service.
*An SME is defined as a company or juristic partnership having year-end paid-up capital of not more than 5 million Baht and earning income of not more than 30 million Baht from the sale of goods or the provision of services in the relevant accounting period. For the Royal Decree No. 562, a SME also includes an individual deriving assessable income under Section 40 (5), (6), (7) or (8) of the Revenue Code of not more than 30 million Baht per annum.