On January 26, 2021, Thailand’s government issued its latest tax relief package for businesses, as it continues to offer initiatives to alleviate the economic impact caused by the pandemic.
- Thailand’s government has issued its latest tax relief package to assist businesses impacted by the pandemic.
- This latest package includes the reduction of land and building tax by 90 percent for 2021, in addition to extending the filing deadline for personal, value-added, and withholding tax.
- The reduction in land and building tax applies to agricultural, residential, commercial, and vacant land.
This latest package provides a reduction in the land and building tax, property transaction fees, in addition to an extension in the tax filing deadline for personal income tax (PIT), value-added tax (VAT), and withholding tax (WHT).
Thailand has issued an array of incentives throughout 2020 to assist businesses, households, workers, and the financial services sector. In April last year, the government provided its largest stimulus package valued at US$58 billion, equivalent to 10 percent of GDP.
Named Phase 3, the package saw US$15 billion provided to commercial banks to lend to SMEs in the form of soft loans. A further US$30 billion was allocated as financial aid for farmers and US$18 billion to temporary workers, contract workers, and self-employed persons. This includes providing 5,000 baht (US$154) in monthly handouts for six months.
Furthermore, the Board of Investment (BOI) — the main agency responsible for promoting foreign investments in Thailand — has also been active in trying to encourage more foreign investment through tax cuts and holidays for selected BOI projects.
In late 2020, the BOI provided corporate income tax (CIT) deductions for large-scale projects and for businesses seeking to adopt digital technologies in their operations.
The reduction of land and building tax
The government will provide a 90 percent reduction of the land building tax for 2021, which covers the following categories of land:
- Agricultural;
- Residential;
- Commercial; and
- Vacant land.
The tax payments are due in April of every year with the following applicable rates:
Read the rest here
