Covid-19 Relief Measures for Thai Companies

TAX MEASURES Reduction in withholding tax (“WHT”) rates.

Reducing the 3% withholding tax rate to 1.5% for domestic payments for the hire of work, services, commission, and professional fees, as period below:

For payments made during the period 01 April 2020 to 30 September 2020 – 1.5%; and
For payments made during the period 01 October 2020 to 31 December 2021 – 2% (for e-payments and e-withholding tax only)
Payments to foundations or associations that carry out business are not be eligible for any of
these reductions.

CORPORATE INCOME TAX

1) Eligible SMEs participating in low-interest loan measures to help entrepreneurs can deduct 150% for interest expenses incurred on loans obtained under the Government’s funding initiative to provide THB 150 billion in soft loans to SMEs with an interest rate of 2 percent for the first two years. The funding of this initiative will be supported by the Government Savings Bank. The maximum loan that an eligible SME can apply for is capped at THB 20 million.

Key requirements:

Company’sannual revenue does not exceed THB 500 million
The total number of employees does not exceed 200 persons
Company has only a single set of accounts

2) The SMEs employers can deduct 300% of eligible salary costs paid to employees in the period from April to July 2020 for corporate income tax purposes. To be eligible for the deduction, the following conditions must be met:

The total number of employees does not exceed 200 persons
The SME’s annual revenue does not exceed THB 500 million
The salaries eligible for the 300% deduction do not exceed THB 15,000 per month per employee
Employees must be insured under the social security fund
The number of insured employees in the said period should not be lower than the number of insured employees as at 31 December 2019.

Those who will receive the benefits from this tax measures include individuals, companies, and partnerships.

Corporate income tax filing extension (PND.50/51)

The filing deadlines for corporate income tax of a non-listed company is extended as follows:
– Accounting period ending 2019 (PND 50), in case of the taxpayer to file a tax return from 1 April 2020 – 30 August 2020, the deadline will be extended to 31 August 2020
– Accounting period ending 2020 (PND 51), in case of the taxpayers to file a tax return from 1 July 2020 – 29 September 2020, the deadline will be extended to 30 September 2020.

Remark: Without this tax relief measure, the regular filing and payment deadline is within 150 days from the last day of an accounting period.

Postponement of submissions and payments of tax returns.

This relief includes all types of taxes, such as Value Added Tax (VAT).

(1) business-owners who must close their establishments in compliance with government orders; and

(2) Other business operators affected by the of COVID-19 outbreak.

The Ministry of Finance will consider each case on its merits.

Faster VAT refunds

Businesses that participated in the ‘Good Exporter’ program can receive VAT refunds as below:
– 15 days (normally take 30 days) for businesses filling through the e-filing system
– 45 days (normally take 60 days) for businesses filing paper returns

OTHER MEASURES Social Security fund – Employers

The Social Security Office announced that the rate for compulsory social security contributions by employers and insured persons will decrease from 5% to 4% for the 3 month salary cycles from March to May 2020 with the extended filing deadline.

The filing deadlines for Social Security Fund by employers is extended as follows:

1. SSF of March 2020 will be extended to 15 July 2020

2. SSF of Apr 2020 will be extended to 15 August 2020

3. SSF of May 2020 will be extended to 15 September 2020

Deduction of expenses for donations for COVID-19

For those who make donation to the Office of the Permanent Secretary, Prime Minister’s Office in order to help fight the COVID-19 Virus between 5 March 2020 and 5 March 2021 can deduct the expenses.

– An individual: 10% maximum of net income

– Companies or legal partnerships: 2% maximum of net income

Remark: The donation is exempt from VAT

Reduction of Electrical and Water Utilities Electrical utilities

3% electricity fee reduction for 3 months (April-June 2020)
Extension of electricity bill payment with no interest charged (no later than 6 months of each billing period) for the billing months of April-May 2020
Refund of electricity deposit for type 1 and 2 users (households and small-scale businesses)

Water utilities

3% water fee reduction for 3 months (April-June 2020)
Extension of water bill payment with no interest charged (no later than 6 months of each billing period) for the billing months of April-May 2020
Refund of water usage deposit for type 1 users (households)

The Finance Ministry has also set up specific hotlines to answer queries, as follows:

1) Financial Measures, Tel: 0 2273 9020 Ext. 3235.

2) Tax Measures, Tel: 0 2273 9020 Ext. 3509, 3529, and 3512.
3) Measures to reduce contributions to the Social Security Fund of employers and employees / measures to build confidence in the capital market system, Tel: 0 2273 9020 Ext. 3643.
4) Measures to alleviate the burden of fees, rental fees, and compensation for services provided by government agencies and state enterprises / measures to alleviate the burden of water and electricity bill payments / measures to assist those affected by the Coronary Infection Disease 2019 or COVID 19. Tel: 0 2273 9020 Ext. 3558.

5) Measures to increase spending efficiency, budget expenditure for the fiscal year 2020, Tel: 0 2127 7000 Ext. 4588.

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