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.
Reminder about filing half-year corporate income tax returns
According to the Notification of the Ministry of Finance issued in March 2020, the deadline for filing the half-year corporate income tax return (Form PND. 51) and paying half-year income tax is extended to 30 September 2020 where the fiscal year is the same as the calendar year. This extension applies to companies or legal partnerships, excluding companies that have securities listed on the Stock Exchange of Thailand before or on the last day of the filing deadline.
Reduction in withholding tax rates and e-withholding tax
Ministerial Regulation No. 361, which was published in the Government Gazette on 30 March 2020, reduced withholding tax rates on certain types of payments temporarily from 3% to 1.5%. This was one of the measures taken to support businesses during the COVID-19 outbreak. From 1 October 2020, the normal withholding tax rate of 3% shall apply, unless withholding tax is remitted electronically (“e-withholding tax”).
Additional deduction of interest and wage expenses
On 12 July 2020, the Government published two Royal Decrees in the Government Gazette which became effective on the following day regarding the additional deduction of interest and wage expenses. These additional deductions as presented below are tax measures announced by the Cabinet in March 2020 to support business during the COVID-19 outbreak.
e-Payment requirement for tax returns
On 17 June 2020, Notification of the Director-General of the Revenue Department No. 17 (“Notification No. 17”) was issued to set out rules, procedures, and conditions for filing tax returns and paying a tax liability electronically.
Deduction of three times wage expenses
In March 2020, the Cabinet approved several tax measures to help boost the economy during the COVID-19 outbreak. One of those tax measures was a deduction of three times wage expenses for employers. On 24 June 2020, the Revenue Department issued further clarification regarding this deduction.