On 20 Dec 2024, Ministerial Regulation 396 was gazetted providing a personal income tax deduction allowance for flood repair costs in the 2024 year.

This Tax Insight summarizes the allowance under Ministerial Regulation 396.

The Tax Allowance under Min Reg No. 396

Applicability

For costs paid during the period of 16 August 2024 to 31 December 2024.

Repair of Buildings

For the repair of buildings or structures on land or repair of condominium units during the period of 16 Aug 2024 to 31 Dec 2024:

• A personal income tax allowance deduction for the amount of the repair costs actually paid out, but not exceeding 100,000 baht in total.

Repair of Vehicles

For the repair of vehicles registered under the law governing the registration of vehicles during the period of 16 Aug 2024 to 31 Dec 2024:

• A personal income tax allowance deduction for the amount of the repair costs actually paid out, but not exceeding 30,000 baht in total.

Rules and Conditions

The rules and conditions specified in the Government Resolution are as follows:

​1. For the repair of buildings or condominium units:

1. The repair costs shall be paid between 16 Aug 2024 and 31 Dec 2024,
2. The repaired property shall have been damaged by flood between 16 Aug 2024 and 31 Dec 2024 in an area that the government declared a disaster area or emergency disaster relief area,
3. The individual taxpayer must be the owner, lessee or user of the property for residential purposes or for business use,
4. In the event the repair costs are incurred for more than one property, the repair costs shall be combined together, and
5. The claiming of the tax allowance deduction for the repair costs shall be in accordance with the Revenue Dept's rules, procedures and conditions.

2. For the repair of vehicles:

1. The repair costs shall be paid between 16 Aug 2024 and 31 Dec 2024,
2. The repaired vehicle shall have been damaged by floods between 16 Aug 2024 and 31 Dec 2024 in an area that the government declared a disaster area or emergency disaster relief area,
3. The individual taxpayer must be the owner or lessee of the vehicle,
4. In the event the repair costs are incurred for more than one vehicle, the repair costs shall be combined together, and
5. The claiming of the tax allowance deduction for the repair costs shall be in accordance with the Revenue Dept's rules, procedures and conditions.

Caution​

If the Revenue Department's tax audit officers find any of the rules, procedures or conditions have not been met entitlements to tax allowances (deductions) such as this one can be lost and back-taxes plus penalty and surcharge could be payable.

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