Tax relief on Donations to Nepal

A cash donation to support the relief efforts following the earthquake in Nepal through “Send Thai Hearts to Nepal” (KrungThai Bank account 067-0-10330-6) can be used as a tax allowance for personal income tax.

Keywords: Mazars, Thailand, Nepal Earthquake, Tax, Donations, Corporate Income Tax, Personal Income Tax

22 June 2015

The allowable amount is equivalent to the amount actually donated, capped at 10% (including all donations) of income after deducting expenses and other tax allowances. The donor shall retain the transfer slip as evidence for claiming the allowance.

For companies, a cash or asset donation made to Nepal will be deductible from corporate income tax at 2% (including other donations) on the net taxable profit. However, the company can only donate through Thai government agencies (e.g. the Prime Minister’s Office) and retain the donation certificate issued by the government agency as evidence for claiming the tax deduction. If the donation is in the form of assets, it is exempt from Value Added Tax.