The outbreak of Covid-19 is causing an enormous human lost and is also having a negative impact on the global economic. Thailand is one of the countries affected from this unexpected pandemic. In response of this pandemic and its impact in the economy, the Thai government is gradually introducing various measures to resolve the crisis and some measures are aimed to support the business sector.
Regarding the safety of Thai citizens and foreigners, the government introduced measures to prevent the pandemic such as closing specific places where large number of people could gather; shutting down the transportation between some provinces; cancelling flights in both domestic and international.
Regarding the economic impact of the Covid-19, the Thai government has been taken action to remedy the situation of employees, freelances and reduce the impact for the entrepreneurs as follows:
Taxation on Individuals
-Extend the period for filling tax return and paying personal income tax to August 2020
-Increase the allowances of premium life insurance to be 25,000 THB (previously could be deducted only 15,000 THB).
-Exemption on the personal income tax for additional income in which the government pays to the medical professionals.
Taxation on Companies
-Annual Tax (P.N.D 50): Extend the period for filling tax return and paying Corporate Income Tax to 31st of August 2020 (previously the company shall submit tax return and Corporate Income Tax within May 2020)
-Prepaid/ Half-Year Tax (P.N.D.51): Extend the period for filling tax return and paying Corporate Income Tax to 30th of September 2020 (previously the company shall submit tax return and prepaid Corporate Income Tax within August 2020).
-Value Added Tax (VAT), Withholding tax (WHT): Extend the period for filling tax return and remitting VAT, WHT or other tax for another one month.
-Excise Tax for the Bar: Extend the period for another three months from March 1 – May 31, 2020, pay tax within 15th of July 2020.
Social Security for the Employer
-Reduce the amount of Social Security payable to the employer to be 4%, and the employee to be 1% under section 33 of the Social Security Act, B.E. 2533 (1990).
-Extend the period for remitting the social security of March-May 2020 for another three months.
o wage payable on March 2020, shall remit within July 15, 2020
o wage payable on April 2020, shall remit within August 15, 2020
o wage payable on May 2020, shall remit within September 15, 2020
Social Security for the Employee
The employee who does not work or where the employer does not allow the employee to work, the social security department will pay 50% of the base salary for not over 180 days.
The business is closed by the government order, the social security department will pay 50% of the base salary for not over 60 days.
The employee who resign from work, Social Security department will pay 45% of the base salary for not over 90 days.
The employee who was laid off, social security department will pay 70% of the base salary for not over 200 days.
Financing for SMEs
According to BOT Press Release No. 20/2020, Re: Additional measures to assist SMEs affected by COVID-19
and to stabilize corporate bond market, on April 7, 2020:
-SMEs with a credit line not exceeding 100 million THB- Extend the loan payment both principal and interest for the period of six months, eligible to SMEs lending from a commercial bank or a specific financial institution, provided the interest continue increasing during this pausing period.
-Soft loans for SMEs with a credit line not exceeding 500 million THB – Eligible to soft loan with a concessional interest rate of 2% per year and interest-free for the first 6 months, provided SMEs shall qualified as follows;
o Operates the business in Thailand
o Not the listed company in the Stock Exchange of Thailand or the Market for Alternative Investment (MAI)
o Remain normal repayment or arrears not over 90 days (non-NPL) on December 31, 2019.
o The maximum is 20% of the outstanding loan as of the end of December 2019
At the end of April on 2020 the Thai Government announced conversations with the business community and the richest families in Thailand, therefore we expect more legal updates on new measures from the Thai Government.
If you need to talk with a lawyer on what should be done to protect your business in Thailand, please contact us at [email protected]
