Deductions for political contributions approved
The Revenue Department is allowing tax deductions for contributions to political parties, with a cap of 10,000 baht for individual taxpayers and 50,000 baht for companies.
The tax-collecting agency has amended the Revenue Code to enable income earners who contribute to political parties to claim a tax deduction of up to 10,000 baht, and juristic entities up to 50,000 baht per tax year, said a source at the department who requested anonymity.
The amended Revenue Code, which is currently having a public hearing running through Oct 15, is to comply with Section 70 of the 2017 charter, stipulating that those who contribute to political parties can deduct income tax.
The department considered it appropriate to permit both individuals and corporate taxpayers to claim political contributions and donations as expenses for income tax deductions, the source said.
Political parties play an important role in a democracy, so there need to be measures to encourage people to support them, the source said.
At present, the department allows taxpayers to donate income tax refunds to political parties.
In related news, the Finance Ministry said the cabinet has approved tax exemptions for foreign economic and trade offices set up in Thailand.
The UN, embassies, consulate-generals, and other international organisations located in Thailand are exempt from value-added tax, while their employees and vehicles are also tax-free, said the ministry.
The tax incentive is aimed at fostering relations and enhancing trade and economic cooperation with other governments, it said.