On 08 Nov 2022, Thailand Tax Royal Decree (No 757) was gazetted entitling corporate entities to a corporate tax deduction concession for staff training seminars held during the period of 15 July 2022 to 31 December 2022.
This Insight has been updated for the prescriptions in Royal Decree (No 757).
The tax deduction concessions under Royal Decree (No 757) are similar to the entitlements under Royal Decree (No 656) for the 2018 year. The concessions under Royal Decree (No 757) for the 2022 year are as follows:
The Tax Deduction Concessions under RD (No 757)
Applicability
From 15 July 2022 to 31 December 2022.
Tax Deduction Concessions
1. For staff training seminars held in a secondary tourism province or another tourist locality as may be prescribed by the Director-General of Revenue:
200% corporate tax deduction concession (2 times the costs).
2. For staff training seminars held in a province or locality other than under 1:
150% corporate tax deduction concession (1.5 times the costs).
3. For staff training seminars held in a province or a locality under 1 and also a province or a locality other than under 1, and the costs cannot be identified as costs incurred in any particular province or locality:
150% corporate tax deduction concession (1.5 times the costs).
Staff Training Seminar Costs
The staff training seminar costs include the costs of:
Seminar and accommodation rooms, transportation and other related costs for staff training seminars; and
Services fees paid to tour operators registered under the law governing tour operators and tour guides for staff training seminars.
Rules, Procedures and Conditions
The rules, procedures and conditions prescribed in the Royal Decree are that:
Another tourist locality as may be prescribed by the Director-General of Revenue shall be those advised by the Ministry of Tourism and Sports;
The right to the concessions shall only be for costs paid out during the period from 15 July 2022 to 31 December 2022; and
The Revenue Department's additional rules, procedures and conditions shall also be complied with.
Caution
If the Revenue Department's tax audit officers find any of the rules, procedures or conditions have not been met, the entitlement to the concession may be lost, and back-taxes plus penalty and surcharge could be payable.
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