Exemption of taxes and fees is provided to support debt restructuring of non-bank creditors, i.e. credit cards, personal loans, microloans and nano loans, provincial retail loans, hire purchase, leasing and other creditors entered into debt restructuring agreements with financial institutions for the debt restructuring incurred from 1 January 2020 to 31 December 2021. The details of tax exemption are as follows:
- Exemption of personal income tax or corporate income tax on income derived by debtors from debt forgiveness.
- Exemption of personal income tax, corporate income tax, value added tax, specific business tax and stamp duty for debtors and creditors on income derived from the transfer of assets, sale of goods, service provision and execution of dutiable instruments due to debt restructuring.
- Exemption of personal income tax, corporate income tax, specific business tax and stamp duty for debtors on income derived from the transfer of immovable property, which is mortgaged to guarantee the loan, to a person who is not the creditor, including the execution of the dutiable instrument due to the transfer of such immovable property. The debtor must use the income received from the transfer of immovable property to repay the loan to the creditor. The said exemption should be applicable to income up to the amount of the loan payable or the obligation under the debt guarantee agreement, subject to the conditions prescribed by the Director-General of the Revenue Department.
- Normal rules imposing conditions and restrictions for deduction of bad debts written off should not apply to creditors that write off forgiven debts as a result of debt restructuring.
- The fee for registration of the transfer or mortgage of immovable property and condominium with the Department of Land as a result of debt restructuring is reduced to 0.01% from the date that the respective Notification of the Ministry of Interior is published in the Royal Gazette (which is yet to occur) to 31 December 2021.