Tax News No. 279 March 2020

Tax News No. 279 March 2020

   1. The Revenue Department has arranged for a large tax measure to treat COVID-19

        Mr. Ekniti Nitithanprapas, the Director-General of the Revenue Department announced that the Revenue Department has closely monitored the situation of the COVID-19 epidemic.
Currently, the overall situation is still of concern. Therefore, the Revenue Department has introduced tax measures to remedy those affected by the epidemic of the said virus. In order to alleviate and ease the burden of taxpayers both personal and juristic person groups as follow:

Measures for groups of personal
    The Revenue Department made tax measures for Medical and Public health personnel who acts against COVID-19  and tax measures for the general public to have quality health care. Including the measures to postpone the filing and payment of personal income taxpayers, including:

1.    Personal income tax exemption measures for risk compensation of medical and public health personnel who perform their duties with sacrifice, responsible for surveillance, investigation, prevention, control, treatment the patients infected with the COVID-19 virus. Such as doctors, nurses, medical technicians, investigation Officers, drivers who send patients, including people who are not government officers or government officers with knowledge, ability and experience in giving medical and public health consultations etc. It is a personal income tax exemption for risk compensation which received from the Ministry of Public Health in the fiscal year 2563 (2020).
2.     Measures for increasing the limit of deduction of health insurance premiums from the original that can be deducted as actually paid but not exceeding 15,000 baht added as deductible as actually paid but not exceeding 25,000 baht and when combined with the deduction of life insurance premiums and living deposits shall not exceeding 100,000 baht. Beginning from the tax year 2563 (2020) onwards, for the public to have more health insurance and the burden of health care costs has decreased.
3.     Measures to postpone the submission of Personal tax return and payment Personal income tax payment, for the tax year 2562 (2019), round 2. The Revenue Department has issued a measure to postpone the submission of form additional deadline by 2 months from the end of 30 June B.E. 2563 (2020) to 31 August B.E. 2563 (2020)(Notification of Ministry of Finance (NO.2) subject: extension of time limit for filing and payment of personal income tax for assessable income in the year 2019).

Measures for groups of juristic person
    The Revenue Department has known about the suffering of entrepreneurs affected by COVID-19 and therefore issues measures to alleviate the said problem, including:

1.    Measures to postpone the filing and payment of corporate income tax for companies or juristic partnerships that are not listed on the stock exchange of Thailand, by postpone the filing of Form P.N.D. 50 from the original that shall submitted in April to August B.E. 2563 (2020) to 31 August B.E. 2563 (2020) and postpone the filing of Form P.N.D. 51 from the original shall submitted from July to September B.E. 2563 (2020) to 30 September B.E. 2563 (2020)(Notification of Ministry of Finance(No.2) subject: extension of time limit for corporate income tax under Revenue code dated on 31 March 2020).
2.   Measures to postpone filing form and paying taxes for entrepreneurs who have to stop their business according to government orders  due to the COVID-19 virus, it will be postponed for filing and paying taxes as required by the Ministry of Finance(Notification of Ministry of Finance Subject: Extension of the period for filing and payment of tax to the person who has duty to file and pay the withholding tax, corporate income tax income tax, Value Added Tax, Special business Tax and stamp duty dated 31 March 2020)

3.   Measure to reduce withholding tax rate at 3% for payment of assessable income under 40(2)(3)(6)(7) and (8) of Revenue Code to help Corvid-19 situations and to promote e-Withholding tax systems to 1.5% for the payment from April to September 2020 and to 2% for the payment from October 2020 to December 2021(Ministerial Regulation No.361 (B.E.2563) dated on 27 Match 2020)

   
    2.  BOI has extended the period of filing an application for permission to grant corporate income tax privileges　

        Secretary-General of Board of Investment said that corona virus (Covid-19) is spreading and affecting to Thailand economics and recently, Ministry of Finance has issued the measurement to extend the period to pay corporate income tax for the accounting period B.E.2562 (2019) to be within 31 August B.E.2563 (2020).
To make the conditions for the use of BOI tax privileges in accordance with the measurement of Ministry of Finance, Board of Investment therefore extended due date to apply for corporate income tax exemption privileges to be within 31 July B.E.2563 (2020) or before the due date for submitting corporate income tax return not less than 30 days for the convenience of the promoted person(Notification of the Board of Investment No. Por. 3/2563 Re: Extension of the due date for filing applications for rights and benefits of corporate income tax exemption dated 25 March 2020).

     3.  Measurement to support the spread of Coronavirus Disease 2019 (COVID-19), which may affect the meeting of juristic person of B.E. 2563 (2020).  

    As announced by the Ministry of Public Health, Coronavirus Disease 2019 (COVID-19), is a dangerous contagious disease according to the Communicable Disease Act B.E. 2558 (2015), according to the announcement of the Ministry of Public Health regarding name and symptoms of dangerous communicable diseases (No. 3) B.E. 2563 (2020) (Government Gazette, Volume 137, Special Part 48 Ngor, dated 29 February 2020) and there are ongoing reports on the spread of the disease rapidly in regions of the world, which may affect the meeting of juristic person.
Department of Business Development(DBD) as an agency responsible for overseeing business registration under the Civil and Commercial Code regarding on the company or juristic partnership, Public Limited Company Act B.E. 2535 (1992), Trade Association Act B.E. 2509 (1966) and Chamber of Commerce Act B.E. 2509 (1966) and have the duty to oversee the accounting and the submission of financial statements according to thr Accounting Act B.E. 2543 (2000). Therefore, DBD issued the announcement as follows.
Any limited company, public limited company, trade association, or chamber of commerce that has been affected by the aforementioned situation causing unable to hold a meeting or hold a meeting longer than the time specified by law,  once the meeting has been conducted, shall prepare a letter explaining the reason to submit to the registrar on a case-by-case basis.

    4.  Social Security Office has extended due date of remitting contributions and reduce rate of contribution.

        On 26 Match 2020, Social security office announced extension of due date of remitting contribution for salary in March to May 2020 to 15th of 3 months later from each due date and reduce rate of contribution to 4% for employer and 1% for employee(News of the Social Security Office Subject: Measures to reduce rate and the extension of time to submit social security contributions dated 26 March 2020).