Tax reduction incentives support enterprises
Date 30 May 2021 time 20:03
The Revenue Department issued incentives tax measures to support social enterprises to be strong and sustainable.
The Cabinet approves the principle of tax exemption for social enterprises. The money is invested in social enterprises, both natural persons and juristic persons. Such money can be deducted as a deduction or expenditure in the calculation of net profits. To support social enterprises for stable and sustainable growth
Mr. Ekniti Nitithanprapas Director-General of the Revenue Department revealed that the Ministry of Finance. By the Revenue Department Realize the importance of promoting and supporting social enterprise businesses. To have the ability to compete in trade and to expand more To create stability and sustainability for the community and society Therefore proposes to the Cabinet for approval in principle Draft decree issued under the Revenue Code Regarding Tax Exemption (No. ..) BE …. (Revision of Tax Measures to Support Social Enterprises) on May 25, 2021 with details. Summarized as follows.
1. Exemption of corporate income tax for companies or juristic partnerships that have been registered for the type of social enterprise that do not wish to share profits since the date of social purpose is the main goal of the business.
2. Tax benefits of sponsors of social enterprises
2.1 In the case of natural persons Able to deduct investment in shares or partnerships to form or increase capital, companies or juristic partnerships that have been registered for social enterprises and have registered as social enterprises for not more than 100,000 baht for the tax year. Rights are required to hold shares or become partners until the social enterprise is ceased to exist, unless otherwise specified.
2.2 In the case of a company or a juristic partnership
(1) Can deduct expenses, investments in shares or being a partner in order to establish or increase capital, a company or a juristic partnership that is registered for social enterprise and has actually registered as a social enterprise, provided that the right user must hold Shares or partners until the social enterprise ceases to exist, unless otherwise specified
(2) can deduct expenses of money or property transferred to a social enterprise that has registered as a social enterprise without compensation via electronic donation system from the date this Royal Decree comes into force until 31 December 2023, but when combined With expenditures for public charity or for the public benefit Must not exceed 2% of net profit
3. Benefits for donors to the Social Enterprise Promotion Fund
3.1 In case of natural person Can deduct donations through the electronic donation system to the Social Enterprise Promotion Fund from the date this Royal Decree is effective until December 31, 2023 as far as donation. But when combined with other donations must not exceed 10 percent of the assessable income after deducting expenses. And deductible
3.2 In the case of a company or a juristic partnership Can deduct donation expenses through the electronic donation system to the Social Enterprise Promotion Fund from the date of this Royal Decree effective until December 31, 2023 as far as the donation, but when combined with expenses for public charity or for public benefit, must not More than 2% of net profit
4. Tax exemption for the transfer of assets, sales of goods or the performance of instruments arising from the transfer of assets under Clause 2 or donations under Clause 3 without deducting costs as expenses or expenses in tax calculation Effective from the date of this Royal Decree until December 31, 2023.
5. A company or juristic partnership that is exempt from corporate income tax according to item 1 must have social objectives as the main goal of the business. Take note of being a social enterprise Using property in the business or For business only There is no disposal of assets used in the business, except as required. Not being a party to shareholders or partners, and no compensation is paid. To shareholders or partners Including people with relationships Unless specified As well as follow the rules, procedures and other specified conditions
6. A social enterprise who wishes to exercise the right to register as a social enterprise within the last day. Of the accounting period for which the social enterprise is registered For social enterprises that were registered for social enterprises before this decree came into force. It shall be notified within the last day of the accounting period for which social enterprise is registered or within 180 days from the date this Royal Decree comes into force.In case of necessity, the Director-General of the Revenue Department may extend the time limit.
7. A juristic company or partnership approved as a social enterprise under the Royal Decree. By tax according to this decree Including sponsors of social enterprises are also entitled to tax incentives.
This shall be in accordance with the rules, procedures and conditions prescribed by the Director-General of the Revenue Department. “
Ekniti said that improving the tax incentives for social enterprise businesses and the people who support it. This is a continuous support that will provide social enterprise businesses the opportunity to expand both in terms of quantity and quality. Increase competitiveness It also supports the Social Enterprise Promotion Fund as an important mechanism in providing assistance and development for social enterprises and social enterprise groups. Including to coordinate effective cooperation with various sectors This will help drive civil society in solving problems and develop communities. Society or environment, both at the local and national levels, to be sustainable
You can inquire for more details at all tax offices nationwide. Or the Revenue Information Center (RD Intelligence Center) Tel. 1161