Thailand: Income tax, VAT relief for donations of imported medicine and medical supplies (COVID-19)

Tax relief benefits allowed for donations of imported medicine and medical supplies have been extended

Tax relief benefits extended for donations of imported medicine and medical supplies

A draft Royal Decree, approved by the Thai Cabinet on 18 May 2021, extends the period for tax relief benefits allowed for donations of medicine and medical supplies imported to treat and to counteract the spread of the coronavirus (COVID-19) for public charitable purposes.

The tax relief is available regarding:

  • Imports of supplies used for the treatment of, diagnosis of or protection against COVID-19—such imports are exempt from value added tax (VAT) if donated to certain institutions such as medical institutions and certain public charities.
  • Corporate income tax and VAT exemptions are provided for companies or juristic persons for donations of medicine and medical supplies, provided that the cost of the donated supplies is not included as a deductible expense for purposes of computing corporate income tax.

These tax benefits are available for donations made from 1 March 2021 through 31 March 2022.

Read a May 2021 report prepared by the KPMG member firm in Thailand

 

 

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