The Cabinet recently approved the draft Ministerial Regulation to amend the debt thresholds required for compliance with the conditions of writing off bad debt under Ministerial Regulation No. 186 (M.R. 186).
Keywords: Mazars, Thailand, Tax, Ministerial Regulation, Bad debt write-off, Bank of Thailand
15 March 2021
The amendments under the draft Ministerial Regulation compared with M.R. 186 are presented below.
In addition, the draft Ministerial Regulation sets the criteria for financial institutions to write off bad debts from debtors with respect to loans that are fully reserved at 100 percent in accordance with the rules specified by the Bank of Thailand and have any of the following characteristics:
- the loan principal or interest has been outstanding for an aggregate period of not less than 360 days or 12 months; or
- the debtor meets the criteria for asset write-off as specified by the Bank of Thailand.
The draft Ministerial Regulation shall apply to the write-off of bad debts for accounting periods beginning on or after 1 January 2020 onwards.