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.
Tax benefits from a life insurance savings account
On 26 July 2016, the Cabinet approved in principle a draft ministerial regulation (MR) that will grant a personal income tax deduction of up to 100,000 baht for the amount of money deposited by taxpayers into a life insurance savings account. In addition, money or any benefit received due to such deposit will also be exempt from personal income tax.
Conditions on the tax deduction during Songkran
Expenses paid for food and beverages (excluding alcohol), tour package services, and accommodation for travelling in Thailand during Songkran are deductible for Thai personal income tax purposes.
Tax deduction for OTOP purchases
On 12 July 2016, the Cabinet approved a personal income tax deduction of up to 15,000 baht for taxpayers who purchase OTOP (One Tambon One Product) goods from 1 to 31 August 2016.
Length of time to hold LTF units increased
Previously, a taxpayer had to hold investment units in a Long-term Equity Fund (LTF) for 5 years or more to obtain tax benefits. However, the Thai government issued Ministry Regulation No. 317 (2559 B.E.) in June 2016 extending the period that investment units in an LTF have to be held in order to obtain tax benefits from 5 to 7 years for units purchased from 2016 through 2019.
Tax treatment of BOI losses
In the Minibea court case, the central tax court previously ruled that the losses incurred from projects with investment promotional privileges (BOI projects) could be offset against the profits of the projects not receiving investment promotion privileges, without the need to offset against the profits of other BOI projects first.