In light of the Covid-19 virus crisis that is causing the current economic downturn which is affecting businesses across the kingdom, The Royal Thai Government recently approved Phase One of a broad range of financial and fiscal relief measures designed to help Thai companies, especially small and medium-sized enterprises (SMEs), alleviate the current business downturn.
The travel and tourism industries are a primary focus of attention for these relief measures since this sector is and will be the most affected by the economic downturn. Thailand’s Finance Minister Uttama Savanayana said that tourism, which accounts for 12% of Thailand’s GDP, has been one of the worst affected business sectors due to a 44% decline in visitors in February of 2020, and Chinese visitors alone were down a staggering 85%.
The downturn has had a severe ripple effect across the Thai economy, affecting all forms of transport, trade and other services. Many hotels and restaurants have temporarily suspended operations due to lack of business, as well as to prevent the further spread of the virus. The lack of liquidity also threatens the future of other business areas as well as employment levels.
These relief measures were drafted by the Ministry of Finance and are based on the principles of “Timely, Targeted and Temporary as Necessary”. The measures were approved by the Thai Cabinet on 10 March 2020, and are as follows:
6. Small and Medium Enterprises (SMEs) participating in low-interest credit measures to help entrepreneurs. Having a single account, 1.5 times deduction can be made for interest expenses that occur between 1 April 2020 and 31 December 2020
7. Allowing SMEs to deduct three times the salary expenses paid in April 2020 to July 2020 for corporate income tax purposes. For employees who are insured under the law on the Social Security Fund and receive wages of not more than 15,000 Baht per person per month. To be eligible for the deduction, the following conditions must be met:
8. Dissemination of VAT refunds to domestic entrepreneurs within 15 days after filing the form.
9. Refund the deposit for electricity usage.
10. Reducing contributions to the Social Security Fund by employers and employees.
11. Government agencies to reduce rental fees for state property.
The Ministry of Finance expects to release further guidelines and conditions relating to these measures.
The Finance Ministry has also set up specific hotlines to answer specific questions as follows:
If you have any questions regarding these relief measures, feel free to contact us at [email protected], or call us at +66 (0)2 117 9131-2