Thailand: Changes to rules for writing off bad debts (COVID-19)
Thailand: Changes to rules for writing off bad debts
The Thai Cabinet in January 2021 approved changes that would revise the rules for writing off bad debts—measures that would be intended to support businesses economically affected by the coronavirus (COVID-19) pandemic.
The draft amendment approved by the Cabinet would revise the conditions for writing off bad debts relating to debtor accounts with respect to loans that are fully reserved at 100%, under the rules prescribed by the Bank of Thailand, and for which one of the following conditions applies:
- The principal or interest has been outstanding for a total of 360 days or 12 months.
- The debtor meets the criteria for writing off an account’s assets, as prescribed by the Bank of Thailand.
The changes would apply to bad debts written off in the accounting period beginning on or after 1 January 2020.
More information and measures to implement these changes are expected to be announced soon.
Read a February 2021 report [PDF 124 KB] prepared by the KPMG member firm in Thailand
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