On 5 May 2021, the Cabinet approved two tax relief measures on the donations made to the National Vaccine Institute and the employment of former convicts. The details of the said tax relief measures are summarized below.
The Cabinet approved the draft Royal Decree issued under the Revenue Code to provide tax benefits for those who donate to the National Vaccine Institute to support the research and development, production and distribution of vaccines.
The above measure only applies to donations made to the National Vaccine Institute via the Revenue Department’s e-Donation system from 1 January 2021 until 31 December 2023.
In addition, the donation of assets will be exempt from VAT if the donors are VAT operators.
Another draft Royal Decree issued under the Revenue Code was approved by the Cabinet to extend the period of a tax benefit provided for the employment of former convicts.
Companies or juristic persons that employ former convicts who have been released from prison within three years of the date of initial employment are entitled to an additional 50% tax deduction for corporate income tax purposes for the expenses relating to the employment of the former convicts. However, the maximum expense that is available for the additional deduction must not exceed THB 15,000 per individual per month. This tax benefit applies for the accounting period commencing on or after 1 January 2021, but no later than 31 December 2021.
In order to qualify for the additional tax deduction, the following conditions must be met:
The Royal Decrees associated with these measures are expected to be announced soon.