Tax concessions for COVID-19-related donations
A Royal Decree issued by the Thai Revenue Department and a related notification of the Director-General of the Revenue Department provide for an income tax and a VAT exemption for donations made by juristic entities and individuals to the Prime Minister’s office to support COVID-19 recovery measures (for prior coverage, see the article in the November 2022 issue of Corporate Tax News).
To qualify for the exemptions, the taxpayer must donate money or property via the electronic donation system during the period 6 March 2022 and 31 December 2023. The VAT exemption applies only to the donation of goods.
For juristic companies and partnerships, the tax exemption is equal to the amount of money or the value of the property donated, provided the total amount, when combined with donations for public charitable purposes or for the public interest, does not exceed 2% of the entity’s net profits. For individuals, the tax exemption is equal to the amount of money donated after the deduction of expenses and allowances, provided the total donation value or amount does not exceed 10% of the individual’s net assessable income.
The exemptions were granted to extend the period of COVID-19 measures from 5 March 2022 (the date the previous concessions expired) to 31 December 2023 and to encourage taxpayers to donate and help the government in its efforts to recover from the COVID-19 pandemic.