Thai cabinet approves enhanced tax incentives for social enterprises

The draft Royal Decree will amend Royal Decree No. 735 and is intended to broaden access to the incentives, remove the expiry dates of certain benefits and relax some of the existing conditions. 

1. Permanent 100% tax deduction for contributions to SEs 

• Individuals: A new personal income tax deduction equal to 100% of cash contributions made to a qualifying SE will be available for contributions made from 1 January 2024, with no expiry date. The deduction, together with other qualifying donations, will be limited to 10% of assessable income after the deduction of expenses and other allowances. 
• Juristic persons: The existing corporate income tax deduction equal to 100% of cash or assets contributed to a qualifying SE will be extended indefinitely. The extension applies from 1 January 2024, following the expiry of the previous incentive on 31 December 2023. The deduction, together with other qualifying public-charity or public-benefit expenses, will be limited to 2% of net profit. 

Qualifying contributions must be recorded through the Thai Revenue Department’s e-Donation system. 

2. Increased deduction for donations to the SEPF 

The tax deduction for donations to the SEPF will be increased from 100% to 200% for donations made from 1 January 2024 to 31 December 2028. 

For individuals, the incentive applies to cash donations, while juristic persons may donate cash or assets. The deductions will be subject to the applicable aggregate limits: 

• Individuals: the deduction, together with other double-deductible donations, must not exceed 10% of assessable income after the deduction of expenses and other allowances. 
• Juristic persons: the deduction, together with relevant charitable, public-benefit, educational and sports-related expenses, must not exceed 10% of net profit before deducting such expenses. 

All qualifying donations must be made through the e-Donation system. 

3. Indefinite tax exemptions for qualifying asset transfers 

The draft Royal Decree will extend, with no expiry date, exemptions from personal income tax, corporate income tax, VAT, specific business tax and stamp duty arising from: 

transfers of assets to a qualifying SE without consideration; and 

donations of assets to the SEPF. The extension will apply to qualifying transactions carried out from 1 January 2024 through the e-Donation system. 

4. More flexible notification requirements for SEs 

An SE that fails to notify the Director-General of the Revenue Department of its intention to claim tax incentives within the statutory deadline will still be permitted to submit a late notification. 

However, the SE and its supporters will become eligible for the tax incentives only from the accounting period or tax year following the period or year in which the notification is submitted. 

5. Shorter minimum holding period for investments in SEs 

Once the Royal Decree takes effect, the Director General of the Revenue Department intends to amend Notification No. 38 to reduce the required holding period for shares or partnership interests acquired through the establishment or capital increase of an SE. 

Investors will be required to hold their investment for at least 10 years from the investment date, instead of indefinitely. The revised condition is also expected to apply to investments made before the new Royal Decree takes effect. 

Disclaimer: These measures have been approved in principle but have not yet been enacted. The final conditions and effective dates remain subject to the enacted Royal Decree and related Revenue Department notifications. 

References (in Thai): 

• Thai Revenue Department public relation news no. 17/2026. Retrieved from the Revenue Department. 
• Thai Cabinet meeting summary dated 21 July 2026. Retrieved from the Government.