Grant of corporate tax deductions of up to twice the cost for participating in domestic trade fairs and exhibitions

In order to encourage more economic stimulation after the COVID-19 pandemic caused the business sector and economy to stagnate, the government has issued a new law to stimulate the domestic economy, similar to the corporate tax deduction concession in 2021, namely Royal Decree No. 758 B.E. 2565 (2022). The said Royal Decree is a tax measure to support domestic trade fairs and exhibitions, including to promote employment in such industry by providing tax benefits to juristic persons^*1  for corporate tax deductions of up to twice the cost for participating in domestic trade fairs and exhibitions, such as renting space or service fees. Details of such tax measures are summarised as follows:

Tax exemption

Deduction of twice the cost actually paid for participating in domestic trade fairs and exhibitions.

Types of expenditures eligible for tax exemption

• Renting space; or
• Service fees for participating in domestic trade fairs and exhibitions.

Applicability period

For exhibitions held between 15 July 2022 and 31 December 2022.

Rules and conditions for tax exemption

• Obtain a certificate of participation from the event organisers of the trade fairs and exhibitions in order to prove actual attendance;
• Participate in domestic trade fairs and exhibitions held between 15 July 2022 and 31 December 2022; and
• Pay for renting space or service fees to participate in domestic trade fairs and exhibitions held between 15 July 2022 to 31 December 2022.

Juristic persons who are entitled to income tax exemption must strictly comply with the rules, procedures and conditions prescribed by the Director-General of the Revenue Department.

Royal Decree No. 758 B.E. 2565 (2022) was published in the Royal Gazette on 8 November 2022 and came into force on the following day. In order to have the right to be exempt from corporate income tax retrospectively for costs related to domestic fairs and exhibitions that have been paid since 1 July 2022, there is still one month left before the expiration of such tax benefit.

We hope this article will be useful for those who wish to use such benefits and have plans to attend domestic fairs and exhibitions, particularly regarding our provision of information on the correct required documents and conditions to exercise such tax benefit from the Revenue Department.

This is intended merely to provide a regulatory overview and not to be comprehensive, nor to provide legal advice. Should you have any questions on this or on other areas of taxation law, please do not hesitate to contact our tax team.

*1 Subjected to Section 78/3 of the Revenue Code, the sale of incorporeal goods, provision of services through automatic machines or the sale of goods for which the payment is made by credit cards or by other means of a similar nature.