On 24 March 2020, the Revenue Department issued a second round of tax measures to remedy the impact from COVID-19in order to alleviate the burden of taxpayers, both individuals and juristic persons, as follows:

 Measures for natural persons

     1. Personal Income Tax Exemption

This measure is granted to compensate the risk for medical and public health personnel who perform their duties with sacrifice, and who are responsible for prevention, control and treatment of COVID-19 patients, such as doctors, nurses, medical technicians, disease investigators and drivers, as well as people who have the knowledge, ability and experience in medical and public health consultation, regardless of whether or not they are civil servants. This is a personal income tax exemption for risk compensation received from the Ministry of Public Health in the fiscal year 2020.

  1. Increasing the limit of deduction of health insurance premium

Previously, a health insurance premium can be deducted in the amount actually paid but not more than Baht15,000. However, now it can be deducted in the amount actually paid but not more than Baht 25,000. In addition, when combined with the deduction of life insurance premiums and life insurance deposits, it must not exceed Baht 100,000 commencing from the tax year 2020 onwards.

  1. Postponement of the filing and payment of Personal Income Tax

The Revenue Department issued an additional two month postponement, from 30 June 2020 to 31 August 2020, in order to alleviate the burden of the taxpayer. Previously, tax measures had been postponed from the end of March 2020 to June 2020.

Measures for juristic persons

 4. Postponement of the filing and payment of Corporate Income Tax

For a company or juristic partnership not listed on the Stock Exchange of Thailand, it can submit the PND50 form until 31 August 2020 and can submit the PND51 form until 30 September 2020.

  1. Postponement of the filing and payment for entrepreneurs

This postponement is granted to entrepreneurs who have to cease their business operation according to government orders, and other business operators affected by COVID-19, under which the postponement for filing returns and paying taxes shall be further determined by the Ministry of Finance.

  1. Tax measures and fees to support debt restructuring of non-financial creditors

This will speed up the debt restructuring of those affected by COVID-19, as well as increase the liquidity of the debtors so that they can further operate their business. As for creditors and  financial institutions, the cost will be reduced and such institutions will be able to provide loans to the public, such as personal loans, Nano Finance, provincial retail loans, hire purchase and leasing. In addition, other creditors may enter into joint debt restructuring agreements with financial institutions by granting exemption for income tax, VAT, specific business tax and stamp duty to both debtors and creditors; and setting the lenient regulations on the disposal of bad debts to creditors from 1 January 2020 to 31 December 2021, as well as reducing the registration fees, transfer fees and mortgages of land and property for debt restructuring from 2 percent to 0.01 percent.

(Source: Revenue Department News Por.Chor.Sor 22/2563 dated 24 March 2020)

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