Tax Measures on COVID-19

The Cabinet has approved the following tax measures to help boost the economy during the COVID-19 outbreak.

Keywords: Mazars, Thailand, Tax, COVID-19, Cabinet, Withholding Tax, VAT Refund, Donations

Updated 30 June 2020

The following tax measures have been announced to support business during the COVID-19 outbreak.

1. Tax filing deadline extensions

Monthly Tax Returns

The government announced in April 2020 that the monthly tax filing deadlines have been extended for all business operators. On 12 May 2020, a further extension was granted for tax returns filed electronically.

Tax returns

Month

Normal deadline

Extended deadline

Withholding tax returns
(Forms PND. 1, 2, 3, 53, and 54)

VAT return (Form PP. 36)

March 2020

-     7 April 2020 (paper filing); or

-     15 April 2020 (electronic filing)

-     15 May 2020 (paper filing); or

-     1 June 2020 (electronic filing)

April 2020

-     7 May 2020 (paper filing); or

-     15 May 2020 (electronic filing)

-     15 May 2020 (paper filing); or

-     1 June 2020 (electronic filing)

May 2020

-     8 June 2020 (paper filing); or

-     15 June 2020 (electronic filing)

-     8 June 2020 (paper filing); or

-     30 June 2020 (electronic filing)

June 2020

-     7 July 2020 (paper filing); or

-     15 July 2020 (electronic filing)

-     7 July 2020 (paper filing); or

-     31 July 2020 (electronic filing)

July 2020

-     7 August 2020 (paper filing); or

-     17 August 2020 (electronic filing)

-     7 August 2020 (paper filing); or

-     31 August 2020 (electronic filing)

August 2020

-     7 September 2020 (paper filing); or

-     15 September 2020 (electronic filing)

-     7 September 2020 (paper filing); or

-     30 September 2020 (electronic filing)

VAT return (Form PP.30)

Specific business tax returns (Form PT. 40)

March 2020

-     15 April 2020 (paper filing); or

-     23 April 2020 (electronic filing)

-     25 May 2020 (paper filing); or

-     1 June 2020 (electronic filing)

April 2020

-     15 May 2020 (paper filing); or

-     25 May 2020 (electronic filing)

-     25 May 2020 (paper filing); or

-     1 June 2020 (electronic filing)

May 2020

-     15 June 2020 (paper filing); or

-     23 June 2020 (electronic filing)

-     15 June 2020 (paper filing); or

-     30 June 2020 (electronic filing)

June 2020

-     15 July 2020 (paper filing); or

-     23 July 2020 (electronic filing)

-     15 July 2020 (paper filing); or

-     31 July 2020 (electronic filing)

July 2020

-     17 August 2020 (paper filing); or

-     24 August 2020 (electronic filing)

-     17 August 2020 (paper filing); or

-     31 August 2020 (electronic filing)

August 2020

-     15 September 2020 (paper filing); or

-     23 September 2020 (electronic filing)

-     15 September 2020 (paper filing); or

-     30 September 2020 (electronic filing)

Application for paying stamp duty (Forms Or. Sor.4, 4Kaw, and 4Kor)

-

-     1 April 2020 – 15 May 2020

15 May 2020

Sources:

First extension: Revenue Department Notification dated 3 April 2020

Second extension: Revenue Department Notification dated 8 May 2020

Corporate Income Tax Returns

This extension applies to companies or legal partnerships, excluding companies that have securities listed on the Stock Exchange of Thailand before or on the last day of the filing deadline.

Tax returns

Normal deadline

Extended deadline

Notes

Half-year corporate income tax return (Form PND. 51)

April 2020 – September 2020

30 September 2020

For electronic filing, if the filing deadline is between 23 September 2020 and 30 September 2020, the filing deadline can still be extended another 8 days.

Year-end corporate income tax return (Forms PND. 50 and 55)

Transfer-pricing disclosure form

April 2020 –
August 2020

31 August 2020

For electronic filing, if the filing deadline is between 24 August 2020 and 31 August 2020, the filing deadline can still be extended another 8 days.

Personal Income Tax Returns

Tax returns

Tax year

Normal deadline

Extended deadline

Year-end personal income tax returns
(Forms PND. 90, 91, and 95)

2019

- 31 March 2020 (paper filing); or

- 8 April 2020 (electronic filing)

31 August 2020

Where a personal income tax liability is paid in 3 instalments, each instalment must be made by the following deadlines:

  • First instalment – must be paid when filing the personal income tax return by the extended deadline;
  • Second instalment – must be paid within one month of the day that the first instalment was paid; and
  • Third instalment – must be paid within one month of the day that the second instalment was paid.

If any instalment is not paid by the specified time, the taxpayer loses the right to continue paying taxes in instalments, and must pay a surcharge for any unpaid and subsequent instalments. The surcharge shall be calculated from the date that the extended deadline ends until the date that payment is made.

Sources: Revenue Department announcements one , two and three  dated 31 March 2020 

On 30 March 2020, Ministerial Regulation Number 361 to reduce withholding tax rates on certain types of payments was published in the Government Gazette.

Payment Period covered

Current rate

Reduced rate

Filing method

1 April 2020 – 30 September 2020

3%

1.5%

Any filing method

1 October 2020 – 31 December 2021

3%

2%

Only e-withholding tax filing

The reduced withholding tax rates shall apply to payments made by a company or legal partnership for the following:

Type of payment

Recipient

Assessable income under Section 40(2) of the Revenue Code, which is income from rendering services, such as brokerage fees or commissions

A company or legal partnership conducting business in Thailand, excluding:

  • foundations or associations conducting a revenue-producing activity; and
  • foundations or associations designated by the Minister under Section 47 (7) (b) of the Revenue Code.

Assessable income under Section 40(3) of the Revenue Code, which is goodwill, copyrights, or other rights

Assessable income under Section 40(6) of the Revenue Code, which is income from liberal arts professions, such as law, engineering, or architecture

A person liable to personal income tax or corporate income tax only if that person is domiciled in or a resident of Thailand or conducting business in Thailand, excluding:

  • foundations or associations conducting a revenue-producing activity; and
  • foundations or associations designated by the Minister under Section 47 (7) (b) of the Revenue Code.

Assessable income under Section 40(7) of the Revenue Code, which is income from a contract of work whereby the contractor provides essential materials besides tools

Assessable income under Section 40(8) of the Revenue Code, which is remuneration for hire of work, prizes, discounts, or other benefits due to sales promotions and other services, excluding the following:

  • remuneration for public entertainers
  • advertisement
  • premiums for non-life insurance
  • transport charges  

Source: Government Gazette

The following tax measures were announced by the Cabinet in March 2020 but are still not passed into law.

2. Deduction of 1.5 times interest expenses

A company that has taken out low-interest loans (soft loans) can claim a tax deduction of 1.5 times the interest expense paid from 1 April 2020 to December 2020.

The company must meet the following conditions:

  • Taxable income of not more than 500 million baht from its business in the last 12-month accounting period, where the last day of the accounting period ended on or before 30 September 2019.
  • Not more than 200 employees.
  • Registered with the Revenue Department under the procedures set out for a tax amnesty introduced in 2016.

3. Deduction of 3 times wage expenses

In March 2020, the Cabinet approved several tax measures to help boost the economy during the COVID-19 outbreak. One of those tax measures was a deduction of 3 times wage expenses for employers. On 24 June 2020, the Revenue Department issued further clarification regarding this deduction.

Under this tax measure, SMEs who are still hiring employees and paying wages can claim a tax deduction of 3 times the wage expenses paid during April through July 2020 when calculating their corporate income tax.  However, the following criteria must be met:

  • The entity must be a company or legal partnership having income in the last 12-month accounting period not exceeding THB 500 million, where the last day of the accounting period ended on or before 30 September 2019.
  • The entity must have not over 200 employees.
  • The entity must continue to employ the employee insured with the Social Security Fund and pay wages of not more than THB 15,000 a person a month.
  • The total number of insured employees from 1 April 2020 to 31 July 2020 must not be less than the total number of insured employees as of the last day of March 2020.

SMEs that meet these criteria can register to claim the deduction under this tax measure on the Revenue Department’s website  from the date that the system is activated until within 150 days of the last day of the accounting period.

Official notification regarding this tax measure has not yet been issued.

4. Early VAT refunds for “Good Exporters”

A “Good Exporter” as defined in Departmental Regulation Tor.490/2562 which has capital of over 10 million baht will receive a VAT refund earlier than normal, as follows:

  • Within 15 days if filing electronically
  • Within 45 days if filing on paper

5. Deduction of expenses for donations for COVID-19

Individuals, companies, and partnerships that make a donation electronically to the Office of the Permanent Secretary, Prime Minister’s Office, to help fight the COVID-19 virus between 5 March 2020 and 5 March 2021 can deduct the expenses for such a donation (not exceeding 10% of net income for an individual and not exceeding 2% of net income for companies or legal partnerships). The donation is also exempt from VAT.

6. Investment in Super Saving Fund

Individuals investing in a Super Saving Fund (SSF) can deduct the actual investment amount, capped at 200,000 baht, as an allowance from personal income tax. The Super Saving Fund must invest not less than 65% of its asset value in securities listed on the Stock Exchange of Thailand, during the period from 1 April to 30 June 2020.

This allowance will be in addition to the SSF allowance threshold (30% of the total income, capped at THB 200,000) and will not be included in the retirement saving fund threshold of THB 500,000.

7. Increase in tax allowance on health insurance premiums

The maximum personal income tax allowance on health insurance premiums has been increased from 15,000 baht and 25,000 baht. When included together with life insurance premiums, the total of both premiums must not exceed 100,000 per year.

Applicable from the tax year 2020 onwards.

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