Thai Taxes Reduced for Flood Victims
3 November 2010
The Thailand Cabinet yesterday agreed to decrease personal and corporate income tax for people affected by the floods, as well as for individuals that donate money to assist victims of the flooding.
Businesses or individuals that provide assistance with organizing fund drives for the flooding, or that donate directly, will also be entitled to the tax cuts.
The tax cuts will be applicable to donations and any damage caused by the floods from September through December of this year. When individual donors submit their tax forms next year, they will need to provide receipts in order to receive the tax cut.
The amount that can be considered tax deductible:
For companies that receive donations or contribute donations directly, the tax deductible amount will be calculated based on the amount of money donated. The amount can not go beyond 2% of the company’s annual net profit.
For individuals who donate to the flood relief efforts, the tax deductible amount will also be based on the size of the donation, but is not to exceed 10% of the individual’s net personal income.
The Prime Minister of Thailand, Abhisit Vejajjiva, stated that all ministries had been given instructions to re-direct any unspent funds from the 2010 fiscal year to help with the flood relief efforts. If the 2011 budget for emergency relief operations (47 billion baht) is not enough, the Thai government will also withdraw 4.2 billion baht from the Thai Khem Kaeng economic stimulus program. |