In order to minimize the economic consequences of Covid-19 and to fight the outbreak, the Thai government announced a series of additional fiscal measures. The main objective of these measures is to minimise the impact of the virus and to allow businesses to bounce back as soon as possible.
The 3% Withholding Tax levied on payment for services, will drop to 1.5% from April until September. It is also applied on Thailand Properties investments if the rents are declared as a “commission” of a “profit”.
Monthly social security contributions will amount to 4% of gross salary (as opposed to 5%) and will be capped at THB 600 per month per employee (as opposed to the usual THB 750) from March to August 2020;
Value Added Tax (VAT) refunds will be faster: within 15 days for online refunds and 45 days for refunds by Treasury offices.
There will be a triple tax deduction on salary expenses paid by SMEs to employees earning up to THB 15,000 per month and provided that the number of employees is not less than the number declared on 31/12/2019.
Finally, an increase (x 1.5) of the tax deduction on interest incurred on subsidized loans to SMEs from April to December 2020.
Source : Orbis Alliance law firm
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