On 16 January 2018, the Government of Thailand resolved to bring back the child daycare corporate tax deduction concession for 2018-2020 corporate fiscal years. This Tax Insight summaries the Government's resolution.
The Thailand Government introduced this corporate tax deduction concession for the 2011-2015 financial years. It is being re-introduced for the 2018-2020 years, but this time with some additional rules, procedures and conditions.
The Tax Deduction Concession
An exemption from corporate tax on income equal to 100% of expenses paid out by corporate entities, but not more than 1 million Baht, for costs incurred on child daycare centers at the workplace for the children of employees (i.e. an additional corporate tax deduction for 100% of the actual costs incurred but not more than 1 million Baht).
For child daycare costs incurred during each of the financial years beginning on or after 01 January 2018 and before 31 December 2020.
Rules, Procedures and Conditions
The resolution of the Government prescribes the following rules, procedures and conditions for this corporate tax deduction concession:
The expenses shall be of the type and nature prescribed in the Regulations of the National Child Protection Agency Governing Daycare Centers at the Workplace of a Business B.E. 2560;
The corporate entity shall have a certificate for providing the child daycare from the Department of Children and Youth or the Provincial Social and Human Security Office; and
The corporate entity shall comply with the rules, procedures and conditions of the Revenue Department.
If you wish to claim this tax deduction concession, it is important to comply with all of the rules and conditions. A failure to do so will cause the Revenue Dept tax audit officers to disallow the claim.
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.