Thailand Tax Amnesty for Corporate Entities
On 01 January 2016, two new tax laws were Gazetted, and put into effect, immediately from that date, the Government's offer of a tax amnesty for certain Thailand corporate entities.
These tax laws are part of the Government's tax reform measures and aim to persuade Thailand corporate entities to cease the practice of preparing two sets of books (one real and one for tax filings) and encourage Thailand corporate entities to comply with the tax laws.
The two laws (which we collectively refer to as the Tax Amnesty Laws) are:
A summary of the Tax Amnesty Laws is as follows:
The Tax Amnesty Laws prescribe for:
Entitlement to the Tax Exemptions
A corporate entity that is entitled to the Tax Amnesty exemptions is a Thailand company or juristic partnership having gross revenues of not more than 500 million Baht for its financial year that ended on or before 31 December 2015.
Circumstances Precluding a Corporate Entity's Entitlement to the Tax Exemptions
The exemptions are not available to a Thailand company or juristic partnership that:
A Thailand company or juristic partnership that is entitled to the Tax Amnesty exemptions is required to comply with the following:
For a Thailand company or juristic partnership that does not comply, the Director-General of Revenue is entitled to revoke the entity's entitlement to the Tax Amnesty exemptions and the Revenue Department's audit officers are entitled to undertake tax investigations of the entity and order the entity to pay additional taxes, penalties and surcharges under the provisions of the Revenue Code.
The Ministry of Finance and Bank of Thailand are also entitled to take action to ensure that, for the purposes of loan applications, banks shall use those books and financial statements that an entity prepares for its tax return filings.
Further Additional Tax Exemptions and Reductions for SMEs
For a Thailand company or juristic partnership that is a Small and Medium Enterprise (SME) the Tax Amnesty Laws prescribe for further additional corporate income tax exemptions and reductions for their 2016 and 2017 financial years, as follows:
For an SME to be entitled to these further additional corporate income tax exemptions and reductions under the Tax Amnesty Laws, the SME is required to:
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.