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Tax Relief Measures to Ease the Burden of People Suffering from the Covid-19 Pandemic

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Tax Relief Measures to Ease the Burden of People Suffering from the Covid-19 Pandemic

On 24 August 2021, the Ministry of Finance announced the three following tax measures in order to ease the burden from the Covid-19 pandemic, by increasing the liquidity of people and business operators:

1. Grant an extension period of the current reduced VAT rate of 7% for another two years

With regard to the sale of goods, provision of services and importation, the Cabinet approved the measure to extend the period of the current reduced VAT rate of 7%in all cases from 1 October 2021 to 30 September 2023.

2. Grant an extension period to submit tax return forms via the e-filing system

This extension is implemented in accordance with the Government’s policy to support government agencies to be able to provide public services to people located anywhere and at any time of day or night by applying digital technology, which encourages people to stay at home under the Government’s policy of “stop the virus by staying home for the nation”.

Tax return forms

Tax month

Extension period

Half-year Corporate Income Tax for the fiscal year 2021 (P.N.D.51)

Within 3 August 2021 to 22 September 2021

Within 23 September 2021

Corporate Income Tax for the fiscal year 2020 (P.N.D.50, 52, 55), financial statement and disclosure form

Within 3 August 2021 to 22 September 2021

Within 23 September 2021

Mid-year Personal Income Tax (P.N.D.94)

Within 30 August 2021

Within 30 December2021

Tax return forms

Tax month

Extension period

Withholding Tax
P.N.D. 1, 2, 3, 53 and 54

August 2021

30 September 2021

Value Added Tax (VAT)

September 2021

29 October 2021

P.P.30 and 36

October 2021

30 November 2021

Specific Business Tax (SBT)
P.T.40

November 2021

30 December 2021

3. Grant a reduction or exemption on the fine for late submission or declaring incorrect tax returns

The said reduction or exemption is granted to people or business operators who were not able to submit tax return forms of VAT or SBT within the due date, or declared incorrect tax returns for the tax return forms which must be submitted within September 2021 to December 2021. In such regard, if a tax return form is submitted within three months from the above extension period, the fine shall be reduced or exempted as follows:

  • Exemption of fine in a case where the tax has been fully paid.
  • Reduction of fine at the minimum rate of 2 percent when tax has already been paid, but not less than 25 percent of the tax payable.
  • Reduction of criminal fine:
    • If the fine is not exceeding Baht 2,000, it will be reduced to Baht 1.
    • If the fine is not exceeding Baht 5,000, it will be reduced to Baht 2.

Remark: In practice, the late submission of P.P.30 and P.T.40 cannot be submitted via the e-filing system; it must be submitted only by hard copy. In this regard, taxpayers should keep an eye on when  the Revenue Department will stipulate a clear regulation on this.