Tax Section - Doing Business
You will find here a series of summaries providing an overview of useful tax regulations, processes and tax issues for Doing Business in Thailand.
Additional deduction of interest expenses
Under Royal Decree No. 707 issued on 12 July 2020, a company or legal partnership can claim a tax deduction of 1.5 times (1 time as a normal deduction and 0.5 times as an additional deduction) the interest expense paid on loans under the low-interest credit measures to help entrepreneurs directly and indirectly affected by the COVID-19 outbreak according to the Cabinet's resolution on 10 March 2020. This is applicable only to the interest expense on low-interest loans (soft loans) from 1 April 2020 to 31 December 2020.
New Year’s events for employees
At this time of year, many companies tend to host New Year’s parties for their employees. Companies should keep in mind the following tax issues related to New Year’s parties and New Year’s gifts given to employees.
Revenue and expenses to related-party transactions
On 16 November 2020, Ministerial Regulation No. 369 issued by the Revenue Department was published in the Government Gazette. This regulation sets out the rules, procedures, and conditions for Revenue Department officials to adjust corporate taxpayers’ revenue and expenses in relation to related-party transactions that are not at arm’s length under Section 71 bis of the Revenue Code.
Deduction for an investment in new machinery in 2020
Under Royal Decree No. 695, a company or legal partnership can claim a corporate income tax deduction of 2.5 times (1 time as a normal deduction of depreciation and 1.5 times as an additional deduction) for investments made in new machinery under the rules, procedures, and conditions specified by the Director-General of the Revenue Department.
Use of foreign currencies for CIT purposes
Under Notification on Income Tax No. 373 issued by the Director-General of the Revenue Department, which became effective on 15 May 2020, a company or legal partnership may adopt a currency other than Thai currency as its functional currency for corporate income tax purposes under the following rules, procedures, and conditions