E-donation adopted for taxpayer deductions

E-donation adopted for taxpayer deductions

The Revenue Department has adopted an e-donation system to help taxpayers claim a tax deduction on donations.

"Charitable donations to temples, schools, hospitals and foundations amounting to 50 billion baht a year are used for tax-deductible claims, and the Revenue Department must rebate taxes worth 9 billion," said director-general Prasong Poontaneat.

He said adopting the e-donation system is not for examining tax-deductible items, but rather to help donors and taxpayers who do not want to keep donation receipts as evidence for tax claims.

The department has found the pilot e-donation system launched at a Buddhist temple in Nan province had a positive public reception, which led the government to want to extend the service to other religions and regions, Mr Prasong said.

Interested religious bodies can participate in the e-donation system by requesting a 13-digit tax identification number, he said.

Such requests for tax IDs will not result in these religious sites being taxed, as they are tax-exempt.

More than 10,000 places of worship have requested a tax ID.

With the e-donation system, taxpayers who make donations can fill in the details to claim an income tax refund, Mr Prasong said.

Donations to religious, educational and charitable institutions not exceeding 10% of net income per year are eligible for a one-time tax deduction, he said.

Mr Prasong said several banks are joining temples to offer donations through PromptPay-based QR code payment and e-donation receipt issuance.

The department plans to extend the e-donation system to schools, hospitals and foundations in the future for the next stage of the scheme, he said.

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