Waiver or reduction of tax penalties

In addition to the extension of the tax filing deadlines to mitigate the impact of COVID-19, the Ministry of Finance also announced on 24 August 2021 that it would waive or reduce tax penalties.

Keywords: Mazars, Thailand, Tax, COVID-19, Ministry of Finance, VAT

10 September 2021

According to the announcement, for tax returns that must be filed for September through December 2021, tax penalties may be waived or reduced for business operators that are unable to file VAT and specific business tax returns by the deadlines or that file tax returns incorrectly. 

If tax returns are filed within 3 months of the extended filing deadline, the penalty will be waived or reduced as follows:

  • The penalty will be waived if tax liabilities and surcharges are paid in full.
  • The penalty will be reduced to 2% of the tax liability if at least 25% of the tax liability is paid.

Criminal fines in such cases are also reduced to the lowest rate, as follows:

  • A fine not exceeding THB 2,000 is reduced to THB 1.
  • A fine not exceeding THB 5,000 is reduced to THB 2.

Criminal fines cannot be waived.