February 2021 Thailand Tax Update

HLB Thailand Tax Team

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The Thai government continues to monitor the financial impact of the pandemic on the country’s economy and has announced several new tax concessions in response.

 Extended deadline for e-filing of WHT and VAT returns

 Monthly WHT returns and VAT returns filed electronically are normally due for filing within the 15th and 23rd of the next month respectfully.

 For monthly WHT returns and VAT returns filed electronically, which are normally due for filing during the months of February 2021 to June 2021, the filing date has been extended to the last day of the month.

 This extension therefore applies to withholding tax returns (PND 1, PND 2, PND 3, PND53) and VAT returns (Por Por 30 and Por Por 36) for the tax months of January 2021 to May 2021.

Extended deadline for e-filing of 2020 personal income tax returns

The deadline for filing personal income tax returns (PND 90 and PND91) electronically for the 2020 tax year has been extended to 30 June 2021. The deadline for filing a paper return has not been extended and remains 31 March 2021.

Social Security Contribution rate for employees reduced to 0.5%

Monthly contribution rates were reduced at the beginning of the year from 5% to 3% for both employers and employees for 3 months from January to March 2021.

A reduced contribution rate of 0.5% has now been announced for employees only for February and March 2021.

The monthly wage base for contributions ranges from Baht 1,650 to a maximum of Baht 15,000 for each employee. The maximum contribution for February and March 2021 for an employee will therefore be reduced to Baht 450 per month for the employer and to Baht 75 per month for the employee.

Land and building tax reduced by 90% 

Land and building tax payable for the 2021 year has been reduced by 90%. Land and building tax was also reduced by 90% last year due to the pandemic.

Property registration fees reduced to 0.01%         

The Thai Cabinet has approved another reduction of registration fees for the purchase of new residential properties from developers.

 The 2% transfer registration fee and the 1% mortgage registration fee will both be reduced to 0.01%, effective from 3 February 2021 to 31 December 2021. A similar fee reduction had expired on 24 December 2020.

 The mortgage must be registered at the same time as the transfer and the price and the mortgage must both not exceed Baht 3 million.

Duangnetr Sarachai

Principal, Tax & Legal Services

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Radapak Arthapridi

Principal, Tax & Legal Services

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