Thailand: Tax relief for SMEs (COVID-19)

Thailand: Tax relief for SMEs (COVID-19)

Royal Decree Nos. 707 and 708 provide tax relief for small and medium enterprises (SMEs) in response to the coronavirus (COVID-19) pandemic.


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  • Royal Decree No. 707 allows eligible SMEs to claim an additional 50% deduction of interest expenses (for a 150% deduction in total) incurred on “soft loans” obtained under the government’s measure to aid business operators that have been affected from COVID-19 outbreak. The interest expenses must incur in the period from 1 April 2020 to 31 December 2020. There are certain threshold requirements for annual revenue and the number of employees.

  • Royal Decree No. 708 allows eligible SME employers to claim an additional 200% deduction (for a 300% deduction in total) of salary expenses paid to employees who are covered by social security provisions, for salary paid in the period from 1 April 2020 to 31 July 2020. There is a salary threshold amount.  For these purposes, salary does not include overtime payments, bonuses and other benefits relating to employment.

Read an August 2020 report prepared by the KPMG member firm in Thailand

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