Additional deduction of interest expenses
Keywords: Mazars, Thailand, Tax, COVID-19, Revenue Department, Soft loans, Interest expenses
15 February 2021
In order to qualify for the additional deduction under Royal Decree No. 707, Notification of the Director-General of the Revenue Department on Income Tax No. 399 was issued on 30 December 2020, stating that such a company or legal partnership must meet the following rules, procedures, and conditions:
1. Having income of not more than THB 500 million in the last 12-month accounting period, where the last day of the accounting period ended on or before 30 September 2019, arising from or in consequence of the business conducted, and filing a corporate income tax return for that accounting period by the due date specified in the Revenue Code.
2. Having not more than 200 employees in the accounting period mentioned above.
3. Giving its consent for the financial institution which is the lender to provide at least the following information about the loan that the borrower received under the measures for low-interest loans to assist entrepreneurs who are directly and indirectly affected by the COVID-19 outbreak:
- The borrower's taxpayer identification number; and
- Details of the loan agreement, including contract number, contract date, loan amount, term of the loan agreement, and interest rate.