Thailand: Tax Relief Measures in Response to Covid-19


published on 6 April 2020 | reading time approx. 3 minutes 


The Revenue Department has announced a number of tax relief measures in response to the Covid-19 epidemic, aimed at supporting tax payers in Thailand. Below please find an overview of the most significant measures. Further measures are expeted to be rolled out in the future. Please note that this is a summary, and that more specific conditions may apply in some instances.



Temporary reduction on Withholding Tax Deduction rates for various types of payments

According to the Ministerial Regulation No. 361 of the Revenue Department, the Withholding Tax shall be temporarily reduced from the regular rate of 3 percent to 1.5 percent for any payments made between 1 April 2020 to 30 September 2020 for various types of income as listed below.


Payment to companies or juristic ordinary partnerships

  1. Income under Section 40 (2)
  2. Income under Section 40 (3), only for goodwill, copyright and any other rights in a similar nature as royalty
  3. Income under Section 40 (6) and 40 (7)
  4. Income under Section 40 (8), only for hire of work, prize, discount, sales promotion


Payment to natural persons

  1. Income under Section 40 (6) and 40 (7)
  2. Income under Section 40 (8), only for hire of work, prize, discount, sales promotion

In summary, the types of income concerned are mainly payments for services, hire of work and liberal professions for all tax payers, as well as payments for commissions, goodwill and copy right payments only for corporate tax payers.

Furthermore, the Withholding Tax shall be reduced to a rate of 2 percent from 1 October 2020 to 31 December 2021 if the payment of tax is submitted by the new e-withholding tax system.

Please note that the significant factor for the application of the reduced rates is the actual payment date being in the above mentioned period, not the invoicing date (if any).


Extended filing period for Corporate Income Tax returns and payment

For companies not listed in the Stock Exchange of Thailand:

  • all filing deadlines for annual Corporate Income tax filings (PND.50) regularly due between April to August 2020 are extended to 31 August 2020
  • all half-year Corporate Income Tax filings (PND.51) regularly due between July to September 2020 are extended to 30 September 2020

Companies that are severely affected by the COVID-19 epidemic or forced to close by Government order may be granted additional extensions.


Increased tax deduction for interest expense and salary expense for Corporate Income Tax calculation purpose

  • Small and Medium Enterprises (SMEs) may claim a 150 percent deduction for interest expenses incurred on loans obtained under the Government’s low-interest credit line to help entrepreneurs;
    • Significant conditions to be met (as per accounting period ending on or before 30 September 2019):
    • annual revenue not exceeding THB 500 million
    • number of employees not exceeding 200 persons
  • SME employers may deduct 300 percent of eligible salary costs paid to employees in the period from April to July 2020
    • Significant conditions to be met
    • annual revenue of not exceeding THB 500 million
    • total number of employees not exceeding 200 persons
    • eligible salaries for the increased deduction not exceeding THB 15,000 per month per employee
    • such employees are insured under the Social Security Fund
    • number of insured employees in the period must not be lower than the number of insured employees as at 31 December 2019.


Faster VAT Returns

VAT operators registered as “Good Exporter” shall receive VAT refunds within 15 days (instead of 30-day period) if VAT returns are filed via the e-filing system and within 45 days (instead of 60-day period) for regular filings.


Extended filing period of Personal Income Tax returns and payment

The filing deadline for personal income tax returns (form PND.90/91) is extended a second time to now 31 August 2020 (regularly 30 March 2020).


Additional Personal Income Tax Allowance under the new Super Saving Fund (SSF) Scheme

From the beginning of the year 2020, the Government had abolished the tax deductions for investment in the Long Term Equity Funds (LTF) category, previously a popular long-term saving and tax reduction measure.
Alternatively, a new category of Super Saving Funds (SSF) has been introduced, where tax allowance for deductions are however limited to 30 percent of income capped at 200,000 Baht per year. Additionally, such investments in the SSF count towards the overall tax deduction limit of THB 500,000 per year for investments in any type of retirement saving plan such as Retirement Mutual Funds (RMF) and Provident Funds contributions.

In response to the financial impact of COVID-19 on capital markets and to support tax payers, the Revenue Department has announced an additional allowance of up to 200,000 Baht for the investment in SSF (not counting towards the regular limits mentioned above) as follows:

  • eligible investments in SSF from 1 April to 30 June 2020
  • deduction allowance of the actual investment amount, capped at THB 200,000
  • fund policy must invest at least 65 percent of its net assets value in SET shares
  • fund to be held for at least 10 years
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