On 13 May 2018, Royal Decree (No 659) was Gazetted, re-introducing a corporate tax deduction concession for child daycare centers at workplaces for employees.
The Government previously provided this corporate tax deduction concession for the 2011-2015 financial years. It's provided again for the 2018-2020 years but this time with different entitlement and obligations.
This Insight summarizes the rights and obligations under Royal Decree (No 659).
Applicability
Financial years beginning on or after 1 Jan 2018 and before 31 Dec 2020.
The Tax Deduction Concession
An exemption from corporate tax on income equal to 100% of expenses paid out by a corporate entity for costs incurred on a child daycare center at a workplace for employees, but not more than 1 million Baht (that is, an additional deduction for 100% of the costs but not more than 1 million Baht for the additional ded'n).
The Rules and Conditions
The rules and conditions for the additional tax deduction under Royal Decree (No 659) include the following:
The child daycare center shall be of the type and the 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 claimant shall have a certificate for the child daycare center from the Department of Children and Youth or the Provincial Social and Human Security Office; and
The corporate entity claimant shall comply with the Revenue Departments additional rules, procedures and conditions.
Caution
If the Revenue Department tax audit officers find any of the rules, procedures or conditions have not been complied with, the entitlement to the concession could be lost, and back-taxes plus penalty and surcharge could be payable.
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