Cabinet Approves Tax Breaks for Social Enterprises
Thailand's Cabinet approved expanded tax incentives for social enterprises, allowing both individuals and businesses to claim donations through the e-Donation system and doubling deductions for donations to social enterprise promotion funds
The Thai Cabinet has approved enhanced tax incentives to support social enterprises (SE), expanding tax deduction rights to both individuals and juristic persons through the e-Donation system and doubling deduction benefits for donations to social enterprise promotion funds. The measure aims to encourage private sector and public participation in supporting social enterprises that address social and environmental problems, develop communities, and create employment for vulnerable groups.
On July 21, Deputy Government Spokesperson Lalida Periwattana revealed that the Cabinet approved a draft royal decree amending the Revenue Code to extend and increase tax benefits for social enterprise supporters through the Revenue Department's e-Donation system, while easing criteria for accessing these benefits.
The measure targets ongoing public and business support for social enterprises, enabling them to tackle social and environmental issues, develop communities, and create more jobs for vulnerable groups. Key provisions include extending tax deduction rights for donations to social enterprises to cover both individuals and juristic persons at a 1x deduction rate via e-Donation from January 1, 2567 onwards with no end date, replacing the previous restriction to juristic persons only until December 31, 2566. Additionally, donations to social enterprise promotion funds will receive a doubled 2x deduction from January 1, 2567 to December 31, 2571. Tax exemptions for income tax, VAT, specific business tax, and stamp duty on property transfers to social enterprises are extended indefinitely from January 1, 2567. The draft also relaxes registration procedures with flexible timelines to help entrepreneurs access benefits more easily.
The Deputy Spokesperson noted that social enterprises currently employ over 11,500 people, including more than 6,600 from vulnerable groups. This tax measure provides additional incentive for the private sector and public to support social enterprises, facilitating business expansion and employment opportunities. The government views the improvement as crucial to sustained social enterprise development, vulnerable group employment, and community development aligned with UN sustainable development goals.
