The Revenue Department has announced Royal Decree (RD) Nos. 751, 752, 754, 756, 757, and 758 and the related Notifications of Director-General (DGN) of Revenue Department granting certain income tax concessions to taxpayers covering taxable year ended 31 December 2022.
Donations:
- As part of the COVID-19 recovery measures, Royal Decree No. 751 and DGN No.43 were issued granting income tax and value added tax (VAT) exemptions to juristic companies and natural persons who donate money or property to the Office of the Permanent Secretary, Prime Minister’s Office. The donations must be made via the electronic donation system from 6 March 2022 to 31 December 2023 in accordance with the following conditions and procedures:
(a) For natural persons, the tax exemption is equivalent to the amount of money donated after deduction of expenses and allowances, provided the total value or amount of donation, including the donation under Section 47 (7) of the Thai Revenue Code (TRC), does not exceed 10% of the assessable income after deduction of said expenses and allowances.
(b) For juristic companies and partnerships, the tax exemption is equivalent to the amount or value of property donated, provided the total amount, when included with the expenses for public charitable purposes or for public benefits under Section 65 ter (3) (b) of the TRC, does not exceed 2% of its net profits.
BDO Insight: Royal Decree No. 751 was announced to extend the effectivity of the previous COVID-19 measures from 5 March 2022 to 31 December 2023. The extension is designed to further encourage taxpayers to donate and help the government in recovering from COVID-19 pandemic. The VAT exemption covers donations of goods only.
- Royal Decree No. 754 and DGN No. 42 were issued to grant income tax, VAT, specific business tax (SBT), and stamp duty exemptions for donations made via electronic (donation) system from 26 April 2022 to 31 December 2022 to the following organizations:
(a) The Phra Mongkut Klao Hospital Foundation under the Patronage of Her Royal Highness Princess Maha Chakri Sirindhorn;
(b) The Hospital for Tropical Disease Foundation under Patronage of Her Royal Highness Princess Galyani Vadhana;
(c) The Cancer Foundation, Siriraj Hospital;
(d) The Rajavithi Hospital Foundation;
(f) The Somdej Phra Pinklao Foundation; and
(g) The Foundation of Queen Sirikit Naval Hospital.
In addition, Royal Decree No. 756 and DGN No. 45 were issued to grant the same tax exemptions for e-donations made to the Royal Patronage Foundation (Chaipattana Foundation) from 26 July 2022 to 31 December 2024.
The donations referred to in the above two RDs shall be made in accordance with the following conditions and procedures:
(a) For natural persons the assessable income tax shall be exempted after deduction of expenses and allowances equivalent to twice the amount of money donated, subject to a cap based on the assessable income after deduction of expenses and allowances.
(b) For juristic persons, the income tax exemption is equivalent to twice the expenses incurred as and by way of a donation, regardless of whether it was paid in money or property. This is also subject to a cap based on the assessable income after deduction of expenses and allowances.
Moreover, the same tax exemptions (income tax, VAT, SBT, and stamp duty) apply on income received from the transfer of property, or sale of goods, and execution of instruments arising from donation made to the above organizations. In this case, the donor must not include the cost of donated property or goods as deductible expenses for income tax purposes.
BDO Insight: The juristic persons can use the electronic document in the donation system for income tax exemption purposes.
Notification related to the COVID-19 antigen test
Royal Decree No. 752 grants an additional 50% income tax exemption to juristic persons who incurred expenses in buying SARS-CoV-2 (pathogen causing COVID-19) antigen self-test for use by its employees from 1 April to 31 December 22.
BDO Insight: This Royal Decree was issued to extend the previous COVID-19 tax measures from 14 September 2021 to 31 March 2022 to 1 April to 31 December 2022 for employers to play a part in preventing and controlling COVID-19 infections by conducting an initial screening of possible infected employees.
Notifications related to staff training
Royal Decree No. 757 and DGN No. 429 were issued to provide additional income tax deduction for employers who have incurred staff training expenses from 15 July to 31 December 2022, as follows:
(a) 100% of the costs incurred for staff training held in the secondary tourism provinces or another tourist locations as prescribed by the Director-General;
(b) 50% of the costs incurred for staff training held in another province other than (a); and
(c) 50% of the costs incurred for staff training held in both a province, or a location under (a) and also a province or a location other than under (a), and the costs cannot be identified as costs incurred in any particular province or location.
The staff training costs may include the following expenses:
- Seminar, accommodation, transportation, and other related costs for staff training; and
- Service fees paid to tour operators registered under the law governing tour operators and tour guides for staff training.
Notifications related to trade fair and exhibition expenses
Royal Decree No. 758 and DGN No. 430 grant income tax exemption to juristic persons in an amount equivalent to an additional 100% of the expenses paid for space rental or service fees for participating in trade fairs, exhibitions, or trade shows in Thailand. The event shall be held, and the payment shall be made from 15 July to 31 December 2022. However, the juristic person is required to secure and keep a certificate issued by the organizer of the event.