By Tossaporn Kiattidamrongkul, Associate Director
In accordance with Ministerial Regulation No.391 dated 21 December 2023 in respect of revenue exemption for tax measure Easy E-Receipt and Notification of Director-General on Income Tax No.443, dated 21 December 2023 in regard to income tax exemption for income up to the amount paid for purchases of goods or services, the criteria for tax exemptions are detailed as follows.
Exercising the right to be exempt from income tax on income up to the amount paid for purchasing goods or receiving services in Thailand from 1 January 2024 to 15 February 2024 based on the amount actually paid but not exceeding 50,000 baht. Income earners must have evidence such as electronic tax invoices (“E-tax invoice”) or electronic receipts (“E-receipt”) only.
In the case of purchasing goods or receiving services from a VAT registered operator, there must be a full tax invoice issued under Section 86/4 of the Revenue Code in an electronic format (E-Tax Invoice) along with the taxpayer identification number of the purchaser of the product or the recipient of the service. The cost of purchasing products or services that will receive the rights does not include the following:
- Cost of purchasing liquor, wine, beer
- Cost of purchasing tobacco
- Cost of purchasing cars, motorcycles and boats
- Oil and gas costs for filling up vehicles
- Utilities, water supply, electricity expense, telephone expense
and internet service fee
- Service fees with service agreements and service recipients
can use such services beyond the period from 1 January 2024
to 15 February 2024.
- Non-life insurance premiums
In the case of purchasing goods or receiving services from product sellers or service providers who are not VAT registrants, there must be a receipt pursuant to Section 105 of the Revenue Code in an electronic format (E-Receipt) along with the name, surname and taxpayer identification number of the purchaser of the product or the recipient of the service as well as the cost of purchasing the following products or services.
- Purchase of books, newspapers and magazines
- Service fees for books, newspapers, and magazines in the form
of electronic information via the Internet
- Purchase of One Tambon One Product (OTOP) which has been
registered with the Community Development Department.
Expenses for purchasing goods and services according to items 1 and 2, when combined, can be deducted based on the amount actually paid, but not more than 50,000 baht.
In the case where the income earner is a VAT operator and claims input VAT based on E-tax invoice by deducting this from output VAT in the calculation of VAT under Section 82/3 of the Revenue Code when filing of VAT return (PP.30), the income earner is not entitled to use a tax exemption under this announcement.
For more information with respect to Personal income tax exemption for investment in Thai Mutual Fund for Sustainability (Thai ESG) or Personal income tax exemption for purchasing of goods or services under tax measure Easy E-Receipt, readers can contact the author of these articles Khun Tossaporn Kiattidamrongkul on [email protected] who heads up RSM Tax Service Thailand.