Due to the spread of coronavirus, many companies in Thailand have entered a financial crisis, especially those providing tourism services or otherwise related to the tourism sector.
In February–March, the government approved tax relief measures to support companies, primarily small and medium-sized enterprises (SMEs), aimed at reducing costs.
Key tax relief measures:
Reduction of withholding tax rate on payments for services (work, commissions, professional services) provided by companies, partnerships, and individuals:
- From 3% to 1.5% from April 1, 2020 to September 30, 2020, for payments made by any method
- From 3% to 2% from October 1, 2020 to December 31, 2021, for payments made via electronic systems
Reduction of Social Security Fund contributions:
- From 5% to 1% for employees
- From 5% to 4% for employers
- Applicable from March to May 2020
Payment deadlines for monthly contributions for March, April, and May were postponed by three months. March contributions must be paid no later than July 15, 2020.
Extension of tax filing deadlines:
The deadline for filing personal income tax returns was extended from March 31, 2020 to July 30, 2020.
Triple payroll expense deduction
Companies that do not lay off employees may claim a tax deduction of up to 3 times their salary expenses for the period from April 2020 to July 2020.
Eligibility requirements for companies:
- Taxable income not exceeding 500 million baht for the last financial year (ending September 30, 2019 or earlier)
- No more than 200 employees
- All employees registered with the Social Security Fund must be retained, and their monthly salary must not exceed 15,000 baht
- The number of employees must not be lower than in December 2019
- The number of employees must not be lower than in December 2019
For any questions regarding COVID-19-related measures, please contact: +66 87-348-57-03.