Tax and Other Incentives in 2021

We have previously covered the support measures introduced in 2020 to assist businesses and employees during COVID-19.

In 2021, the government also implemented a number of measures aimed at reducing land and building tax, lowering property transaction registration fees, decreasing contributions to the Social Security Fund, and extending tax reporting deadlines to ease the economic impact of the pandemic on business owners and employees.

The most significant incentives are summarized below (based on the table). The information is актуально as of January 29, 2021.

Social Security Fund

Employee contributions reduced from 5% to 3% (January 2021)
Employee contributions reduced from 5% to 0.5% (February–March 2021)
Employer contributions reduced from 5% to 3% (January–March 2021)

Land and Building Tax

Tax rate reduced by 90%
Applies to residential, agricultural, commercial, and industrial properties, as well as land plots

Property Transaction Registration

Transfer registration fee reduced from 2% to 0.01% (for properties up to 3 million THB purchased from developers)
Mortgage registration fee reduced from 1% to 0.01%
Mortgage must be registered simultaneously with the sale transaction

Tax Reductions and Deductions

Withholding tax reduced from 3% to 2%
- Applicable from October 1 to December 1, 2022
- Only for payments made via the e-Withholding Tax system
Corporate tax deduction: triple salary expenses
Conditions:
- Based on salaries from April to July 2020
- Employees must be registered in the Social Security Fund
- Maximum salary per employee: 15,000 THB/month
- Company revenue: up to 500 million THB
- Number of employees: not more than 200
- Number of registered employees must not decrease compared to December 31, 2019
Interest expense deduction at 150%
- For SMEs
- Applicable April–December 2020
- For interest on low-interest government loans under SME support programs

Tax Filing Extensions

Personal income tax (PND90, PND91): deadline extended to June 30, 2021
Withholding tax filings (PND1, PND2, PND3, PND53, PND54):
- Deadline extended to the end of the following month
- Applicable February–June 2021
- Only for electronic filing via e-Withholding system
VAT filings (PP30, PP36):
- Deadline extended to the end of the following month
- Applicable February–June 2021
- Only for electronic filing

VAT Refunds

Within 15 days (standard: 30 days)
- For exporters participating in the “Good Exporter” program
- If application submitted electronically
Within 45 days (standard: 60 days)
- For exporters under the same program
- If application submitted in paper form

These measures were designed to reduce financial pressure and improve liquidity for businesses and individuals during the pandemic.