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Tax Remedial Measures during Coronavirus Outbreak

11 March 2021

Tax Remedial Measures during Coronavirus Outbreak

Due to the Covid-19 pandemic, the remedial measures in the forms of tax measures or Tax Package have been introduced in order to reduce expenses for the individuals and business units.  The remedial measures are as follows.

1. Extension of tax return and tax payment deadline

On January 26, 2021, the Thai Cabinet approved the extension of tax returns and tax payment deadlines for the following tax filed via the Revenue Department’s electronic system (“e-filing”). 

(1) Personal income tax of tax year 2020

Extension of the tax filing deadline of personal income tax returns and payment for P.N.D. 90 and P.N.D.91 of tax year 2020, which are filed via e-filing, from the original deadline on March 31, 2021, shall be extended for 3 months until June 30, 2021.

(2) Withholding tax and value added tax

Deadline for filing withholding tax and value added tax returns and filing via e-filing which is normally due in February 2021 to June 2021, as the case may be, shall be extended to the last day of that month.

2. Reduction of land and building tax

In order to relieve the financial burden of tax payers, the Royal Decree on Reduction of Land and Property Tax was announced on February 1, 2021 to reduce the land and building tax due in 2021 at the rate of 90 per cent for the following types of properties:

a) Land or building for agricultural purpose;

b) Land or building for residential purpose;

c) Land or building for other purposes other than a) and b) above; and

d) Unused land or building.

It is noted that this newly-approved reduction does not affect the existing tax privileges, e.g., tax exemption for land owners for agricultural purposes.

3. Reduction of transfer fee and mortgage fee for residential properties

To promote the sale and purchase of residential properties for individuals, on February 1, 2021, the Ministry of Interior announced the reduction of transfer fee and mortgage fee for the sale of residential properties the price of which not exceeding Baht 3 million, effective from February 3, 2021 until December 31, 2021.

The fee shall be reduced from the original rate at 2% to 0.01% for the following properties:

1) Lands with houses or town house purchased from the land developers under the land development laws; or

2) Condominium units purchased from the condominium developers.

The reduction only applies to the registration of transfer and mortgage at the same time.