Thailand is reducing its withholding tax to boost the economy amid the coronavirus outbreak.
The Cabinet on Tuesday approved a Finance Ministry proposal related to Covid-19 that would reduce the domestic corporate withholding tax to 1.5% from 3%, between April 1 and Sept. 30, if companies make payments via an electronic tax withholding system. The tax rate would rise to 2% from Oct. 1 to Dec. 31, 2021.
- Value-added tax refunds would also be sped up. Online refunds would be made within 15 days, while refunds from tax branch offices would be made within 45 days.
- Small- and medium-sized companies would be able to deduct three times the expenses paid from April to July. They would also be able to take a deduction that’s 1.5 times their interest expenses from April to December.
- The tax measures are part of a larger stimulus package that also includes low-interest loans to affected financial institutions and to small- and medium-sized companies.
To contact the reporter on this story: Kazuhiko Shimizu at correspondents@bloomberglaw.com
To contact the editor responsible for this story:
Learn more about Bloomberg Tax or Log In to keep reading:
See Breaking News in Context
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools and resources.