6 tax incentives to support the economy during Covid-19 outbreak


  • Reduced withholding tax rate from 3% to 1.5%


Withholding tax rates will be reduced for legal and natural persons as follows:

from 3% to 1.5% for the payment of services from 1st April 2020 to 30 September 2020

– from 3% to 2% for the payment of services from 1st October 2020 to 31st December 2021 (for electronic filing onlye-Withholding Tax)


  • 1.5 x tax deductibility of interest expenses

Small and Medium Enterprises (SMEs*) will be allowed  to deduct 1.5x of interest expenses incurred between April 1, 2020 and December 31, 2020.

– Annual income < 500 M Baht
– < 200 employees
– Registered as single account
– Financial year ending by 30 Sep 2019


  •  3x tax deductibility of maintained payroll expenses

SMEs maintaining the employment of their staffs during the covid-19 outbreak will be allowed to deduct 3 x of eligible payroll expenses* paid from April 2020 to July 2020.

*Eligible payroll expenses:
– Maintained insured employees with a salary of 15,000 Baht or less
– If the number of employees has been maintained after Dec. 31st 2019


  • Accelerated VAT refunds procedure

VAT refund claims for private and public companies categorised as “Goods Exporters” will be processed within 15 days.

– For online filings :
Vat refunds processed within 15 days instead of 30 days

– For filings at the Revenue Department district offices:
Vat refunds processed within 45 days instead of 60 days


  • 2x tax deductibility of investment in in the Super Saving Fund (SSF)

Investments made between April 1st, 2020 and June 30th 2020 in the Super Savings Fund (SSF)* will be deductible from the assessable income up to 200,000 Baht.

•Not less than 65% of the Net Asset Value should be invested in the Stock Exchange of Thailand (SET)
•The investment should be held not less than 10 years
•Up to 200,000 THB of investment eligible for tax deduction
•Investment not included in retirement funds deduction limit 


  • Tax deductions for donations for Covid-19

 Individual : deduction of up to 10% of assessable income
 Companies & Partnerships : deduction of up to 2% of net profit
 VAT registered companies : donations exempted of VAT

Donations should be made to The Office of the Prime Minister Permanent Secretary between March 5th 2020 – March 5th 2021