Tax News of May 2021

Due to the spread of coronavirus disease (COVID-19), it significantly effects the economy of Thailand and other countries around the world. In order to relieve the burden of people, the government and related agencies therefore provide tax measures as follows:

1.  Measures to reduce tax on land and buildings

The Royal Decree on Tax Reduction for certain types of land and buildings (No.2) B.E. 2564 (2021) dated 30 January 30, 2021 is enacted in order to reduce tax on certain types of land and building by granting exemption at the rate of 90% and collecting only 10% of the amount of tax calculating for taxation for the year 2021. This covers all types of land and buildings whether it is used for housing, farming, vacant land, commercial or industry use and others. In addition, on January 26, 2021, the Cabinet passed a resolution to extend the collection of taxes on land and buildings for the year 2021 by two months. As a result, the taxpayers are granted an extension for tax payments according to tax assessment form to be within June 30, 2021 instead.

2. Extension of period for submitting Personal Income Tax Returns, Withholding tax and VAT

The announcement of the Ministry of Finance regarding the extension of the due date for submission of tax returns form B.E. 2563 (2020) dated January 28, 2021 has been issued. In terms of Personal Income Tax, the submission period is extended from March 31, 2021 to June 30, 2021 and it is granted only for the submission via e-filling system of PND90 and PND91 form for the assessable income of the fiscal year 2020.

In respect to Withholding tax and VAT of tax month January - May 2021, where the period of submission is from February 2021 to June 2021. the extension is changing the due date of submission and payment to be the last date of the month and it is granted for the submission and payment via e-filling system.

3. Extension of period for submitting Corporate Income Tax

3.1 In case of general companies or juristic partnership

3.1.1 The period to submit PND50 and PND55 form of fiscal year 2020 via e-filling is extended from May 2021 - June 2021 to be within June 30, 2021. In this regard, this extension is only applied to the submission via e-filling system.

3.1.2 The period to submit disclosure form for related companies and partnership under Section 71 bis of the Revenue Code of the fiscal year 2020 is extended from May 2021 - June 2021 to be within June 30, 2021. In this regard, this extension is only applied to the submission via e-filling system.

3.2 In case of companies listed in Stock Exchange of Thailand

3.2.1 The period to submit PND50 form of fiscal year 2020 via e-filling is extended from May 2021 - June 2021 to be within June 30, 2021. In this regard, this extension is only applied to the submission via e-filling system.

3.2.2 The period to submit disclosure form for related companies and partnership under Section 71 bis of the Revenue Code of the fiscal year 2020 is extended from May 2021 - June 2021 to be within June 30, 2021. In this regard, this extension is only applied to the submission via e-filling system.

3.2.3 Companies which are eligible to the extension period under Clause 3.2.1 and 3.2.2 refer to the company that has to postpone the annual general meeting to approve the balance sheet and profit and loss established between April 26, 2021 April 30, 2021. This postponement must be not more than 1 month and the reason of postponement is due to the announcement of measures to control the spread of COVID-19. The eligible companies must notify the previously scheduled annual general meeting and schedule of a new meeting to the Director-General of the Revenue Department on the website of Revenue Department (www.rd.go.th) by May 31, 2021.

4. Reduction of transfer registration fee and registration for mortgages of real estate

Two announcements of the Ministry of Interior dated February 1, 2021 have been issued in order to expand the period of reduction of transfer and mortgages registration at the rate of 0.01%. This includes transfer and mortgages, land and residential building, detached houses, semi-detached houses, terraced houses or commercial buildings from the land developer under the law on land allocation or land allocation conducted by government or governmental agencies. However, this is only applied to the case where the purchase price is not more than 3 million baht and mortgage limitation is not more than 3 million baht. In case of transfer and mortgage of condominium, the purchase price from entrepreneurs who apply for condominium registration is not more than 3 million baht and the mortgage limitation is not more than 3 million baht. This measure is effective from February 3, 2021 to December 31, 2021.