Tax Section - Doing Business
You will find here a series of summaries providing an overview of useful tax regulations, processes and tax issues for Doing Business in Thailand.
Tax deduction for OTOP purchases
On 12 July 2016, the Cabinet approved a personal income tax deduction of up to 15,000 baht for taxpayers who purchase OTOP (One Tambon One Product) goods from 1 to 31 August 2016.
Length of time to hold LTF units increased
Previously, a taxpayer had to hold investment units in a Long-term Equity Fund (LTF) for 5 years or more to obtain tax benefits. However, the Thai government issued Ministry Regulation No. 317 (2559 B.E.) in June 2016 extending the period that investment units in an LTF have to be held in order to obtain tax benefits from 5 to 7 years for units purchased from 2016 through 2019.
Tax treatment of BOI losses
In the Minibea court case, the central tax court previously ruled that the losses incurred from projects with investment promotional privileges (BOI projects) could be offset against the profits of the projects not receiving investment promotion privileges, without the need to offset against the profits of other BOI projects first.
Withholding tax on a rental fee under a leasing agreement
Previously, if a company paid a rental fee to another company under a leasing agreement, it was exempt from paying withholding tax on the rental fee, if the following conditions were met.
Double tax deductions for capital expenditure
The Thai government has recently issued Royal Decree Number 604, which allows 200% deduction of capital expenditure and costs incurred for the addition, alteration, extension, or improvement of an asset for corporate income tax purposes.