close
Share with your friends

Thailand: VAT rate reduction, social security contribution rate reduction

Thailand: VAT rate reduction

The Thai Cabinet approved measures to reduce the value added tax (VAT) rate and the social security contribution rates.

1000

Related content

The Cabinet approved the proposal from the Ministry of Finance to maintain the reduced VAT rate of 7% for another year. The 7% reduced VAT rate is inclusive of local tax, and would be applicable to the VAT liabilities incurring from the sale of goods, service provisions, and import transactions from 1 October 2020 to 30 September 2021. 

The Cabinet also approved a three-month extension of a reduction of the compulsory social security contributions—for September through November 2020. The reduction is intended to aid employers and employees who have been affected by the coronavirus (COVID-19) pandemic. The compulsory social security contribution rates of employers and employees (the insured persons) are reduced to 2% from 5%. The reduced rates apply to each employee’s monthly salary, but not exceeding the maximum salary of Baht 15,000 per employee per month, for the three-month salary cycles from September through November 2020. If the contributions are “over-remitted,” employers or employees can request a refund from the appropriate social security office.


Read a September 2020 report prepared by the KPMG member firm in Thailand

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal