| GTCC’s 3rd update on COVID-19: Relief Measures for Companies in Thailand (new content in bold) |
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As of 30 March 2020
Dear ,
The German-Thai Chamber of Commerce (GTCC) has been watching the situation of the novel Coronavirus (COVID-19) outbreak closely in order to fully support our members and partners. In co-operation with the Germany Trade & Invest (GTAI), we are pleased to share with you updated informatiton on the relief measures for companies in Thailand as follows. |
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Delaying of Tax Filing, Submission, and Payment Delaying the filing, submission, and payment of all types of tax which the Revenue Department collects (Value Added Tax, Specific Business Tax, etc.) for affected entrepreneurs - Entrepreneurs who have to close their establishments according to government orders such as the Ministry of Interior Local government organization Ministry of Public Health, etc.
- Operators that are affected by the spread Outbreaks of COVID-19 viral diseases, with justifiable grounds to delay The Ministry of Finance will consider on a case-by-case basis in order to reduce the burden of document preparation and increase liquidity for the affected business operators.
Extending the submission of Corporate Income Tax of company or partnership limited who is not listed at Stock Exchange of Thailand: - During 2019 fiscal year (Por Ngo Dor 50) for the case that must submit from 1st April to 30th August 2020 to submit within 31st August 2020.
- During 2020 fiscal year (Por Ngo Dor 51) for the case that must submit from 1st July to 29th September 2020 to submit within 30th September 2020.
Extended filing deadline for personal income tax Returns (form PND.90/91) is extended to 31st August 2020. - Reduction of withholding tax rates
- Withholding tax imposed on payment for services, hire of work, commissions (paid to juristic person) and liberal professions reduced from 3% to 1.5% for the payments made from 1 April to 30 September 2020. The withholding tax will be reduced to 2% from 1 October 2020 to 31 December 2021 if the payment is made via e-Withholding Tax system.
Deduction of interest expenses - SME companies with soft loans can claim a tax deduction 1.5 times the interest expense paid from 1 April 2020 to December 2020
- Entrepreneurs can deduct the expenses for hiring/salary of employees who are member of Social Security Office (SSO) and receiving income not more than THB 15,000 per month at 300% from 1st April to 30th July 2020. Entrepreneurs must hire the same number of employees as declared at SSO in December 2019.
- Early VAT refunds after 15 days if submitted online
Donations given to support COVID-19 measures via the Revenue Department’s e-Donation system during 5 March 2020 to 5 March 2021: Juristic persons can claim cash or asset donations as a deductible expense for corporate income tax purposes up to 2% of the net taxable profit.
Import Duty Exemption on Goods for Treatment, Diagnosis or Prevention of COVID-19 Goods specified by Ministry of Public Health. Effective from the date of the announcement of the Ministry of Finance, until 30th September 2020 |
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| Labor Cost and Labor Market Measures |
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Social security fund - Rate for insured persons reduced contribution to 1% for the salaries from March 2020 to May 2020 and a reduced rate of 4% from June 2020 to August 2020. Reduced rate of the contributions by employers at 4% from March 2020 to August 2020.
- The deadline for employers to submit compulsory social security forms and remit contributions is extended for the salary of March 2020 to 15 July 2020; for the salary of April 2020 to 15 August 2020; for the salary of May 2020 to 15 September 2020.
- Social Security Office (SSO) is proposing extra relief measures for employees registered with social security who have lost their jobs and will be given by 45%, 50% or 70% of their salaries with a ceiling a ceiling of up to 15,000 baht a month for a maximum number of days, depending on resignation, agreed unpaid leave, forced shutdown or termination.
Migrant workers: The Thai Cabinet announced a Resolution to allow migrant workers and their dependents from Cambodia, Lao People's Democratic Republic, Myanmar and Viet Nam who are on registered name lists and who hold a work permit that expires on or before 31st March 2020 to temporarily work and stay in Thailand without penalty, effective from 1st April to 30th June 2020. |
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| Measures of Bank of Thailand and Commercial Banks |
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- The Bank of Thailand (BOT) would ensure sufficient liquidity, as well as the well-functioning and stability of the financial markets. Financial institutions have prepared business continuity plans to enable customers and the general public to continue to utilize important services such as deposit, withdrawal, money transfer and various credit services to supplement customer liquidity in addition to programs to assist businesses and individual customers. Source: Bank of Thailand
- Commercial banks offer measures like extended loan repayment, lower fees and reducing interest rates to relief business loans, personal loans and retail loans. Overview of measures of individual banks can be found here
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Transportation from Thailand to Germany - Four special flights organised by the German Embassy Bangkok from Thailand to Germany are available on 2-5 April 2020, through a booking at: https://www.condor.com/de/index.jsp
- Lufthansa (LH) is flying from Bangkok to Frankfurt 3 times a week: Monday Thursday and Saturday, starting from this week. (27/03/2020)
Please follow the news of COVID-19 from the Ministry of Public Health (MOPH). If there are any questions, contact the Department of Disease Control Hotline 1422 (available 24 hours) or visit its website here.
If you would like to contact the German Embassy Bangkok, pease call Hotline @ 02-287-9123 (Monday to Friday 9.00 am – 8.00 pm, Saturday to Sunday 10.00 am – 4.00 pm) or email <info@bangk.diplo.de> |
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| COVID-19 Update on GTCC Website |
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We will continue to provide you with updates from GTCC, the government and our member companies in this dedicated section COVID-19 Update on our website. |
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In compliance with the EU General Data Protection Regulation (GDPR), please be informed that your personal data (name and contact details) is being stored and used by us to send you our newsletter, invitations to our events and invitations to participate in surveys. We confirm that we will not share your personal data with any other organisation and that you can withdraw your consent at any time by contacting us by email <communications@gtcc.org>. For more information please see our website for our Data Protection Policy. |
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