Thailand: Reduction of VAT; extended tax deadlines and waiver or reduction of penalties (COVID-19)

Several relief measures have been released in response to the coronavirus

Several relief measures have been released in response to the coronavirus

The Ministry of Finance on 24 August 2021, released several relief measures in response to the coronavirus (COVID-19) pandemic.

These relief measures include a reduction of value added tax (VAT), an extension of tax filing deadlines and a waiver or reduction of penalties.

Two-year extension of reduced VAT rate of 7%

The Cabinet approved the Ministry of Finance’s proposal to maintain the reduced VAT rate of 7% for another two years.

The reduced 7% VAT rate will be inclusive of local taxes and applicable for VAT liabilities incurred from sales of goods, service provisions and import transactions from 1 October 2021 to 30 September 2023.

Extended tax return filing and tax payment deadlines

An extension of tax return filing and tax payment deadlines will be granted to certain tax returns for submissions made via the Revenue Department’s e-filing system.

Tax payment and tax return

Eligible tax month

Normal timeline

Extended timeline 

Half-year personal income tax

N/A

8 October 2021

30 December 2021

Half-year corporate income tax

N/A

3 August 2021 –

22 September 2021

23 September 2021

Corporate income tax

Financial statements

Transfer Pricing Disclosure form

N/A

3 August 2021 –

22 September 2021

23 September 2021

Withholding tax

August 2021 - November 2021

Seventh day of

the following month

Last working day of the following month

(30 September 2021/

29 October 2021/

30 November 2021/

30 December 2021

Self-assessed value added tax

Seventh day of

the following month

Value added tax

15th day of

the following month

Specific business tax

15th day of

the following month

Waiver or reduction of penalties and fines

A waiver or reduction of VAT and specific business tax filing penalties for payments that must be paid within the period from September 2021 to October 2021. Penalty waivers or reductions will apply if tax is filed within three months after the extended tax filing due date at the rates below.

  • No penalty if taxes and surcharges are paid in full.
  • Penalties reduced to 2% if tax paid is not less than 25% of the total tax payable.

Read an August 2021 report prepared by the KPMG member firm in Thailand

 

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