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On 20th August 2020, “Notification of Director General No.382”, which stipulates the details regarding  “【COVID-19】 Special Tax Incentive for Employment Stability in SMEs: Additional 2 Times Deduction of Wage Expenses  ” has promulgated (announcement on 24th August).

 

Unclear items in Emergency Royal Decree No.708* have been clarified as follows.

(*Please refer to the newsletter on 24th August for the contents of Emergency Royal Decree.)

 

1.Monthly Wage Requirements

It has been clarified that the company shall apply additional double deduction only for wage expenses of employees who get wages not over than 15,000 baht (employees who get over 15,000 baht will not be eligible for this benefit).

Therefore, considering the recent salary levels in Thailand, it is likely that companies which employ factory workers or construction workers only could enjoy this benefit.

 

2.Maintaining Employment Requirements

Total number of insured employees covered under social security at the end of April, May, June and July 2020 must not be less than the total number of insured employees at the end of March 2020 except for “reasonable reason“ as follows, i) retirement due to reach the retirement age, ii) unable to work due to a serious disability and iii) decreasing by death.

Therefore, not only dismissal due to the company business circumstances but also the resignment due to the employee’s personal reasons will be counted as a decreasing number of insured employees, so it seems that there are very few companies could be applicable this benefit.

 

3.Procedure

As of 26th August 2020, the application has not yet opened on the website of Thai Revenue Department (www.rd.go.th).

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Ref.  ：  Notification of Director General of Revenue on Income Tax (No.382) issued under the 
              Royal Decree issued under the Revenue Code on Tax Exemption (Issue No. 708)

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