Thailand: Tax measures supporting R&D, electronic tax systems, and e-filing

Thailand: Tax measures supporting R&D, electronic tax

Tax measures, approved by the Cabinet and reflected in guidance from the Thailand Revenue Department, concern support for research and development (R&D) in certain areas and the development of electronic tax systems—including government subsidies and an electronic filing (e-filing) deadline extension.


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Tax measures to support research and development (R&D) in science, technology and public health

The Cabinet approved the standards of a Draft Royal Decree that, once enacted, would provide exemptions from income tax for cash contributions made to the Science and Technology Development Fund, the Scientific Research and Innovation Fund, the Metrological System Development Fund, and the Public Health System Development Fund.

  • Individuals would be able to claim up to 200% of the value of cash contributions made to the funds as an allowance for individual (personal) income tax purposes. However, the total claim for these contributions could not exceed 10% of taxable income after deducting expenses and allowances.
  • Companies or juristic partnerships would be able to claim up to 200% of the value of cash contributions made to the funds as a deductible expense for corporate income tax purposes. However, the total claim for expenses to be allowed could not exceed 10% of net taxable profits before deducting public charitable expenses or expenses paid for education and sports.

These measures only apply to contributions made to the funds via the e-donation system from the date that the Royal Decree is effective and until 31 December 2022. The Royal Decree and relevant regulations have not yet been issued.

Tax measures to support electronic tax systems

  • Extension of withholding tax reduction for payments made via e-withholding tax system: The Cabinet approved an amendment to Ministerial Regulation no. 361 (B.E. 2563) to expand the scope of the withholding tax reduction to include a reduction—from 5% to 2%—of the withholding tax on certain taxable income for payments made via the e-withholding tax system. The reduction of withholding tax from 5% and from 3% to 2% for payments made through the e-withholding tax system would be extended for the period 1 October 2020 through 31 December 2022.
  • Extension of tax exemption to support the development of electronic tax systems: Companies and juristic persons would be allowed to deduct 200% of the value of expenses paid towards systems development to support the e-tax invoice, e-receipt and e-withholding tax systems (excluding expenses paid for the installment of a point-of-sale or POS machine). The expenses would have to be paid during the period 1 January 2020 through 31 December 2022.

Further details and new regulations relevant to these issues are expected to be announced soon.

Eight-day filing and tax payment deadline extension for e-filing, extended for another three years

The Thai Revenue Department announced an extension to the eight-day filing and tax payment deadline that has been granted for tax returns filed via the Revenue Department’s e-filing system for another three years—from 1 February 2021 through 31 January 2024. Tax returns eligible for the extension include:

  • Individual (personal) income tax returns (forms P.N.D. 90, 91, 94 and 95)
  • Corporate income tax returns (forms P.N.D. 50, 51, 52, 54 and 55)
  • Withholding tax returns (forms P.N.D. 1, 1 Gor, 2, 2 Gor, 3, 3 Gor and 53)
  • Value added tax (VAT) returns (forms P.P. 30 and 36)
  • Specific business tax return (form P.T. 40)
  • Transfer pricing disclosure form

Tax measures to support government subsidies provided to individuals

  • Individual (personal) income tax exemptions would be available for individuals that derive income from government subsidies received under the following campaigns:
  • Income compensation for employees working for business operators or others that are affected by the coronavirus (COVID-19) pandemic
  • The “Travel Together” campaign
  • The “Kumlungjai” campaign
  • The “50:50 co-payment scheme” (or “Konlakreung” campaign)

The relevant regulations are expected to be issued soon.

Read a January 2021 report [PDF 124 KB] prepared by the KPMG member firm in Thailand

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